Under what circumstances does Coverage D provide benefits?

Coverage D, often referred to as Additional Living Expenses (ALE) in homeowner's insurance policies, provides benefits when a covered loss occurs that makes the insured residence uninhabitable. This coverage is designed to help policyholders with necessary expenses incurred while they are unable to live in their home due to an event such as a fire, explosion, or other covered peril that results in loss or damage to the property.

The intent of Coverage D is to ensure that the insured can maintain a certain standard of living despite the inconvenience of being displaced from their home. This may include expenses for temporary housing, food, and other essential living costs that exceed their normal living expenses while their home is being repaired or rebuilt.

In contrast, the other scenarios do not align with the provision of Coverage D. Temporary moves, selling of property, or extended absences do not typically qualify for benefits under Coverage D unless they are directly related to a covered loss that renders the home uninhabitable.