When a dwelling suffers a covered loss and is severely damaged and cannot be safely lived in, Coverage D provides insurance coverage related to the policyholder's inability to use property.
Coverage D Qualification
Coverage D offers three types of coverage:
- Additional Living Expenses
- Fair Rental Value
- Civil Authority
Coverage Requirements
Additional Living Expenses cover the cost of living in a hotel and/or extra living expenses well a home is being repaired or replaced. There are limits on the term of this coverage. Payments will continue until either:
- The damaged dwelling is repaired or replaced; or
- The policyholder finds a new, permanent residence.
Fair Rental Value
If a dwelling involves a renter, Coverage D will pay a policyholder to cover the fair rental value for the part of the residence premises which is rented up or held out for rental.
Civil Authority
If a dwelling is damaged and unlivable under circumstances involving civil authority, Coverage D payments will be made to cover additional living expenses and fair rental value.
