Which Homeowner's coverage provides indirect loss coverage?

Loss of Use coverage, found under Coverage D in a Homeowner's policy, specifically addresses indirect losses that arise when a property becomes uninhabitable due to a covered peril. For example, if a fire damages a home to the extent that the occupants need to relocate temporarily, Loss of Use coverage will help pay for additional living expenses such as hotel bills, food expenses, and other related costs that the policyholders incur while they cannot live in their home.

This coverage is crucial because it helps maintain a policyholder's quality of life despite the disruption caused by the damage. It ensures that the insured can continue to meet their living expenses, even though they cannot reside in their primary residence during the period of repairs or recovery.

Other coverages such as Dwelling, Other Structures, and Personal Property primarily cover direct losses to the physical structure, other buildings on the property, and personal belongings, respectively. They do not address the costs associated with living elsewhere or the additional expenses incurred during a period of displacement, which is why Loss of Use is specifically designated for that purpose.