What is covered under Coverage D in Homeowners Insurance?

Coverage D in homeowners insurance pertains specifically to additional living expenses that policyholders may incur as a result of their home becoming uninhabitable due to a covered loss. When a significant loss occurs—such as from a fire or severe storm—that makes the home unlivable, this coverage helps to cover the costs of temporary accommodations, such as hotel bills or the expense of renting a different living space while repairs are underway. Therefore, it provides financial support for homeowners during a challenging time, ensuring they have a place to live while their primary residence is being restored.

This feature of Coverage D recognizes that not only are property damages covered, but the insurance also considers the impact of displacement on the insured's daily life. By offering this coverage, insurers help to mitigate some of the stresses associated with loss of use, allowing policyholders to maintain their standard of living despite adverse circumstances.