Which coverage would reimburse an insured if they cannot collect rent because their property is unusable?

The correct answer involves Coverage D, which is typically referred to as Loss of Use coverage or Additional Living Expenses (ALE) in many homeowners insurance policies. This coverage is specifically designed to reimburse policyholders if they are unable to live in their home due to a covered loss. It includes situations where the property is damaged and uninhabitable, thus making it impossible for the insured to collect rental income.

Coverage D provides compensation for the loss of rent that the insured would have received had the property been habitable. This is crucial for landlords and property owners as it protects their income during these unfortunate events. The intent of Coverage D is to mitigate financial losses while the property is being repaired or rebuilt.

Other coverages, such as Coverage A, typically relate to the structure of the home itself; Coverage C often pertains to personal property; and Coverage E might cover liability, but none of these specifically address the issue of rental income loss due to property unusability. Thus, Coverage D is the most suitable option for reimbursing an insured for lost rent when their property is unlivable.