What does Coverage D in a homeowner’s policy typically cover?

Coverage D in a homeowner's policy specifically addresses Additional Living Expenses (ALE). This coverage comes into play when a policyholder's home becomes uninhabitable due to a covered loss, such as fire or severe weather. Under these circumstances, Coverage D helps cover the costs that homeowners might incur for temporary shelter, such as hotel bills or increased living costs, while their home is being repaired or rebuilt.

It is essential for homeowners to understand this aspect of their insurance policy, as it provides financial relief during a stressful time when they are displaced from their home. By covering necessary expenses incurred as a result of the loss, Coverage D ensures that homeowners do not face financial hardship while waiting for their primary residence to be restored.