Which coverage provides payment for additional living expenses after a covered loss?

The correct answer is D because Coverage E, often referred to as Additional Living Expenses (ALE) or Loss of Use coverage, is specifically designed to provide financial assistance for additional costs incurred when a policyholder is unable to live in their home due to a covered loss. This coverage helps pay for lodging, meals, and other necessary living expenses that exceed what the policyholder would normally spend if they were still residing in their home.

This type of coverage is crucial during situations such as fire damage, water damage, or other incidents that render a home uninhabitable. It ensures that the insured can maintain a standard of living while their home is being repaired or rebuilt. Understanding the distinction between various coverage types is essential, as each serves a different purpose in protecting policyholders in the aftermath of losses.