Which type of insurance coverage provides funds for additional living expenses if a home becomes uninhabitable due to a covered loss?

Loss of Use Coverage is specifically designed to cover the additional living expenses that policyholders might incur if their home becomes uninhabitable due to a covered loss, such as a fire or severe storm. This provision of the policy ensures that individuals have financial support to cover costs like temporary housing, meals, and other essentials while their home is being repaired or rebuilt. It provides crucial assistance during a potentially difficult time, allowing homeowners to maintain a reasonable standard of living despite the disruption caused by the loss.

The other types of coverage mentioned serve different purposes. Property Coverage protects against damages to the home and personal property but does not cover additional living expenses. Liability Coverage provides protection if someone is injured on your property, safeguarding policyholders against legal claims, but does not address living expenses. Home Equity Coverage is a less common term that generally refers to loan products and does not specifically relate to living expenses in the event of a loss. Thus, Loss of Use Coverage is the appropriate choice for the scenario outlined in the question.