Which component of homeowners insurance covers additional living expenses when the home is unusable?

The component of homeowners insurance that covers additional living expenses when the home is unusable is Loss of Use. This coverage is important because it helps policyholders manage the costs of temporary housing and other necessary expenses that arise when the insured home is uninhabitable due to a covered loss, such as a fire or severe damage from a storm. Loss of Use ensures that individuals and families can maintain a reasonable standard of living while their home is being repaired or rebuilt, thereby alleviating the financial burden of such circumstances. Other components, like Personal Property, focus on covering the loss or damage to the insured's belongings, while Personal Liability addresses liability claims against the policyholder for bodily injury or property damage to others. The Dwelling coverage pertains to the structure of the home itself, not to additional living expenses incurred during a period of displacement.