What does Coverage D refer to in property insurance?

Coverage D in property insurance refers to the fair rental value of the property. This coverage is particularly relevant in the context of property insurance policies for landlords or property owners. When a property is damaged or rendered uninhabitable due to a covered loss, Coverage D compensates the property owner for the income they would have earned from renting out the property during the time it takes to repair or rebuild.

This coverage helps mitigate financial losses resulting from rental income disruptions, recognized under many homeowners and commercial property insurance policies. It ensures that property owners are not financially burdened by the loss of rental income due to unforeseen damages.

In contrast, the other options pertain to different aspects of property and liability insurance. Actual cash value typically relates to how much an item is worth at the time of loss, taking depreciation into account. Liability coverage, on the other hand, pertains to legal obligations arising from injuries or damages to third parties. Additional living expenses cover the costs related to temporary housing for policyholders when their home is uninhabitable due to a covered event. Thus, while these options reflect various components of insurance policies, they do not pertain to the specific content of Coverage D, which is focused on rental income.