Which coverage in a homeowners policy provides for indirect or consequential losses?

Coverage D in a homeowners policy is specifically designed to address indirect or consequential losses, commonly referred to as loss of use coverage. This type of coverage is crucial because it provides financial assistance when a homeowner is unable to live in their residence due to a covered loss, such as fire or water damage. Under Coverage D, the policy will pay for additional living expenses incurred while the home is being repaired or rebuilt.

This can include costs such as temporary housing, increased utility bills, and other necessary expenses that a homeowner would not have faced if the property had not suffered damage. Thus, it directly supports homeowners by ensuring they can maintain a standard of living even when their home is uninhabitable due to circumstances covered by the policy. It underscores the importance of protecting not just the physical structure of the home but also the lifestyle and convenience of the homeowners.