An owner lives in half of a duplex and rents out the other half. A covered fire makes both halves unlivable. The correct treatment is:

Explanation

The two indirect-loss coverages divide by whose loss it is: fair rental value handles income from the portion held for rental, and additional living expense handles the increased cost of living for the insured's own household. Renting part of a dwelling does not defeat either coverage, so the answer denying both losses misreads the eligibility rules.