What does Coverage D provide in an HO policy?

Coverage D in a homeowners policy, commonly referred to as "Loss of Use," specifically addresses compensation for loss of use of the residence. This means that if a covered peril makes the insured premises uninhabitable, Coverage D provides for additional living expenses incurred while the home is being repaired or rebuilt. This can include costs like hotel stays, restaurant meals, and other necessary expenses beyond the norm that the insured may face due to the temporary loss of their home.

This type of coverage is particularly important as it ensures that the policyholder can maintain a standard of living while their home is unfit for occupancy following a disaster. Understanding this coverage helps policyholders recognize the financial protections afforded to them in situations where they must temporarily relocate and incur additional expenses due to property damage.