What does "loss of use" coverage provide?

"Loss of use" coverage is an essential component of homeowners insurance that provides financial assistance for additional living expenses when an insured home becomes uninhabitable due to a covered loss. This means that if a policyholder's home is damaged by a fire, flood, or other specified peril, and they cannot live there while repairs are being made, "loss of use" coverage helps to pay for alternative accommodations, such as a hotel, as well as other necessary expenses like meals and laundry.

This coverage is particularly important because it ensures that the policyholder can maintain a standard of living despite the displacement. The underlying idea is that while the home is being repaired, the policyholder should not suffer financially or be forced into a less stable living situation. Therefore, option B correctly identifies the purpose and function of "loss of use" coverage within a homeowner’s insurance policy.