Question

54. In a dwelling policy, which of the following provides coverage for additional living expenses incurred by an owner-occupant in the event a covered peril makes the premises uninhabitable due to a covered loss?

(Choose from the following options)
1. Coverage E
2. Coverage A
3. Coverage B
4. Coverage C

Answer 1

Coverage D in a dwelling policy provides for additional living expenses for homeowners if their residence becomes uninhabitable due to a covered loss. It helps maintain a normal standard of living while the dwelling is repaired.

Step-by-step explanation:

In a dwelling policy, Coverage D provides coverage for additional living expenses incurred by an owner-occupant in the event a covered peril makes the premises uninhabitable due to a covered loss.

This type of coverage is crucial for homeowners who might need to pay for temporary housing and additional costs associated with being displaced from their home due to a covered disaster.

The dwelling coverage ensures that if the dwelling is damaged or burglarized, the policyholder can afford to maintain a normal standard of living while repairs are made.