What is the purpose of Coverage D in an insurance policy?

Coverage D in an insurance policy is designed specifically to assist policyholders by covering additional living expenses when their home becomes uninhabitable due to a covered loss, such as a fire or severe water damage. This coverage helps pay for necessary expenses such as temporary housing, food, and other essential living costs that arise while repairs are being made to the home.

For example, if a homeowner cannot live in their house for a period due to extensive repairs, Coverage D ensures they can maintain a reasonable standard of living during this disruption. This feature is crucial for minimizing the financial strain on policyholders when they face such unfortunate circumstances.

In contrast, other options relate to different aspects of home insurance, such as repair costs, liability coverage, or specific damage due to fire, but do not address the additional living expenses covered in Coverage D.