Which of the following best describes the purpose of Coverage D in a dwelling policy?

The purpose of Coverage D in a dwelling policy is to provide additional living expenses when a home becomes uninhabitable due to a covered loss, such as a fire or severe water damage. This coverage helps policyholders manage the financial burdens they may face during the time it takes to repair or rebuild their home. It typically includes costs for things like temporary housing, increased food expenses, and other necessary living expenses incurred because the home is not livable.

The other options refer to different aspects of coverage under a dwelling policy. For example, structural damage to the dwelling falls under other sections of the policy that specifically address property damage, while personal property coverage protects the contents of the home, like furniture and electronics, but not necessarily from theft. Liability coverage addresses the policyholder’s responsibility for injuries or property damage occurring on their premises, but it is a separate component from Coverage D, which focuses specifically on living expenses while the home is being restored or rebuilt.