What is 'coverage for additional living expenses' in a homeowners policy?

'Coverage for additional living expenses' in a homeowners policy refers specifically to the financial protection provided to policyholders when their home becomes uninhabitable due to a covered loss, such as fire or significant water damage. This coverage helps to reimburse the insured for necessary expenses incurred while they cannot live in their home. This often includes costs for temporary housing, additional meal expenses, and other living costs that exceed their normal living expenses.

In this context, the focus is on ensuring that the policyholder is able to maintain a reasonable standard of living even when their primary residence is not available. This coverage is essential in helping individuals or families manage the disruption caused by a significant loss and helps alleviate the financial burden during the recovery period.