With regards to a homeowners policy, which coverage provides for indirect or consequential losses?

Coverage D under a homeowners policy specifically addresses additional living expenses incurred when a homeowner cannot reside in their dwelling due to a covered peril that causes damage. This coverage is designed to compensate for indirect or consequential losses which arise as a result of a direct loss.

For instance, if a fire damages the home, rather than paying for the direct repair costs (which would be covered under Coverage A), Coverage D would cover expenses such as temporary housing and increased living costs while the home is being rebuilt or repaired. This makes it clear that Coverage D is focused on the financial implications when normal living situations are disrupted, thus representing the coverage for indirect or consequential losses effectively.