A homeowner uses a DP-3 to cover a vacation cabin she personally occupies four months each year. When a covered fire makes the cabin uninhabitable during her stay, which DP coverage reimburses her extra hotel and meal costs?
Explanation
Coverage E, Additional Living Expense, reimburses the named insured for the extra costs incurred while displaced from a dwelling they themselves occupy, including hotel, meals, and similar living expenses. Coverage E is standard on DP-2 and DP-3 but not on DP-1. Coverage D pays for lost rental income (a landlord scenario), not the owner's personal living costs. Coverages A and C apply to the building and personal property.
Law Reference: ISO Dwelling forms — Coverage E ALEThis topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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Related questions on this topic
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