What does Coverage D (Loss of Use) provide in a homeowners policy?

Coverage D — Loss of Use — pays additional expenses the insured incurs when their home is uninhabitable due to a covered loss. Two components: (1) Additional Living Expense (ALE) — costs above the insured's normal living expenses, such as hotel, restaurant meals (above grocery budget), laundry, pet boarding, extra mileage; (2) Fair Rental Value — if part of the home was rented out, the lost rental income. Coverage typically lasts for the shortest of: the time to repair or replace the property, the time for the insured to permanently relocate, or a policy time limit (often 24 months) or dollar limit (typically 20-30% of Coverage A). Coverage D is often overlooked but can be the most immediately important coverage when a fire or other loss displaces the family.