What typically constitutes Coverage D in a dwelling policy?

Coverage D in a dwelling policy is designed to address the situation where the insured property becomes uninhabitable due to a covered peril. This coverage provides compensation for loss of use and additional living expenses incurred while the dwelling is being repaired or rebuilt.

In practice, if a policyholder experiences damage to their home from a covered event, they may be forced to temporarily relocate. Coverage D helps by covering the costs of living elsewhere, such as hotel bills, meal costs, and other expenses over and above what the policyholder would typically incur if living in their own home. This ensures that the policyholder can maintain a standard of living despite the disruption caused by the loss of their dwelling, thus reflecting the policy's intent to provide comprehensive support during a challenging time.

This specific focus sets it apart from the other options, which pertain to different aspects of coverage not defined under Coverage D.