USAA Licensing Practice Exam

Question: 1 / 400

Coverage D in a homeowners policy pertains to which of the following?

Medical payments to others

Indirect loss of use and fair rental value

Coverage D in a homeowners policy is specifically designed to address the loss of use of the insured property. This includes situations where the property is uninhabitable due to a covered peril, which may result in the insured needing to temporarily relocate. The coverage can provide financial assistance for additional living expenses incurred during this time, as well as loss of fair rental value if the insured property is rented out to tenants who are unable to occupy it.

This aspect of Coverage D is critical because it ensures that the policyholder is not financially burdened due to circumstances beyond their control, allowing them to maintain their standard of living while the property is being repaired or rebuilt. It addresses indirect losses, which are costs that go beyond direct damage to the structure itself, highlighting the comprehensive nature of homeowners policies.

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Building detached from the abode

Personal liability coverage

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