Question

With regards to a homeowners policy, Which coverage provides for indirect or consequential losses?Which coverage in a homeowners policy provides for indirect or consequential losses?

a) Coverage A - Dwelling
b) Coverage B - Other Structures
c) Coverage C - Personal Property
d) Coverage D - Loss of Use

Answer 1

Coverage D - Loss of Use provides for indirect or consequential losses in a homeowners policy.

Step-by-step explanation:

In a homeowners policy, Coverage D - Loss of Use provides for indirect or consequential losses.

This coverage helps to reimburse the policyholder for additional living expenses incurred when their dwelling becomes uninhabitable due to a covered loss or damage.

For example, if a fire occurs and the home becomes uninhabitable, Coverage D would help cover the cost of temporary housing and related expenses until repairs are completed.

Some indirect or consequential losses could include the cost of renting a hotel room, meals at restaurants, or even transportation expenses due to the loss or damage.