Which coverage in a homeowners policy provides for indirect or consequential losses?

Coverage D in a homeowners policy is designated for loss of use, which addresses indirect or consequential losses that arise when a covered property is damaged. This coverage is especially relevant when the insured home becomes uninhabitable due to a covered peril, such as a fire or natural disaster. Coverage D typically helps cover additional living expenses, ensuring that homeowners can maintain a certain standard of living while their home is being repaired or rebuilt.

This is different from Coverage C, which pertains specifically to personal property, Coverage A, which covers the dwelling itself, and Coverage B, which provides coverage for other structures on the property, such as garages or sheds. In contrast, these coverages focus on direct losses related to property damage rather than the subsequent consequences that affect the homeowner's living situation.