Which coverage provides for costs incurred due to loss of use of the dwelling?

Coverage E, also known as Loss of Use or Additional Living Expenses, is designed to cover the costs incurred if a policyholder cannot live in their home due to a covered peril, such as damage from a fire or a natural disaster. This coverage pays for necessary expenses such as temporary housing, food, and other living costs that exceed the normal expenses of the homeowner while their residence is being repaired or replaced.

This type of coverage is essential because it addresses the financial burden that arises when a dwelling becomes uninhabitable, ensuring that the insured can maintain a standard of living while their home is being restored. By providing this safety net, Coverage E plays a critical role in the overall homeowner’s insurance package, allowing for peace of mind during stressful situations.

Other coverages mentioned do not specifically address the costs incurred due to loss of use of the dwelling, making Coverage E the definitive choice for this situation.