When a dwelling is severely damaged, how much will an HO-3 policy pay for the insured's additional living expenses?

An HO-3 policy provides coverage for additional living expenses under Coverage D, which is specifically designed to help insured individuals during situations that necessitate temporary relocation due to damage to their dwelling. When a home is severely damaged and uninhabitable, the policy will cover necessary and reasonable additional living expenses incurred, such as costs for lodging, meals, and other related expenses beyond the normal living costs.

The coverage is designed to ensure that the insured does not suffer financial hardship while their home is being repaired or replaced. The payments made under Coverage D will be subject to the limits set forth in the policy. Therefore, the insured can expect reimbursement for all reasonable and necessary expenses they incur for temporary housing, including costs for renting an apartment or staying in a hotel, up to the maximum amount specified in Coverage D of their policy.