Question

Which of the following coverages in dwelling and homeowners policies is for indirect losses?

1) Loss of use
2) Dwelling
3) Structures
4) Contents

Answer 1

In dwelling and homeowners policies, 'Loss of use' coverage applies to indirect losses, helping cover additional living expenses when the dwelling is uninhabitable due to damage or burglary.

Step-by-step explanation:

In dwelling and homeowners policies, coverage for indirect losses is provided under Loss of use. This indicates that when an insured dwelling is damaged or burglarized and becomes uninhabitable, the policy will help cover the costs associated with living elsewhere, such as hotel bills or additional food expenses, while repairs are being made. This is distinct from coverage for direct losses, which include those to the dwelling, other structures, and contents, which reimburse for the physical damage or theft of property.