In Homeowners policies, which coverage protects against an indirect or consequential loss?

In Homeowners policies, Coverage D, which is known as Loss of Use, specifically addresses indirect or consequential losses. This coverage comes into play when a covered loss makes the insured premises uninhabitable, resulting in additional expenses for the policyholder. For example, if a fire damages a home and the family is unable to live there, Coverage D would provide benefits for additional living expenses such as temporary lodging, restaurant meals, and other costs incurred while the home is being repaired.

This aspect is important because it highlights how insurance not only covers the direct physical damage to the property but also protects the policyholder from the financial impact of being displaced from their home. This is a key feature of homeowners policies, ensuring that policyholders maintain their standard of living even in the event of a significant loss.