Which Coverage provides additional living expenses in the DP-2 policy?

In a DP-2 policy, Coverage E specifically addresses Additional Living Expenses (ALE). This coverage is crucial for policyholders because it helps cover the costs incurred when the home becomes uninhabitable due to a covered loss, such as fire or water damage. Coverage E reimburses the policyholder for necessary expenses, such as temporary housing, increased food costs, and other related living expenses, ensuring they can maintain their standard of living while their home is being repaired or rebuilt.

Understanding that Coverage A pertains to dwelling protection, Coverage B usually provides coverage for other structures, and Coverage C covers personal property helps clarify why Coverage E is uniquely designated for additional living expenses. This differentiation is important for policyholders to recognize the specific protections their policy offers.