What does 'Coverage D' refer to in a dwelling policy?

'Coverage D' in a dwelling policy specifically refers to loss of use coverage. This coverage is designed to provide financial support in the event that the insured property becomes uninhabitable due to a covered peril, such as a fire or severe storm. When a dwelling is damaged, individuals may need to temporarily relocate while repairs are being made, and 'Coverage D' helps cover the additional costs incurred during this period, such as hotel bills or increased living expenses beyond what they would normally pay. This assistance ensures that policyholders are not financially burdened while their homes are being restored, allowing them to maintain a standard of living despite the disruption.

It is distinct from personal property coverage, which concerns the contents within the home, liability coverage, which protects against legal obligations due to damages or injuries, and additional living expenses that, while similar in effect to loss of use, are not specifically defined in the same contractual manner under dwelling policies.