Which expense will NOT be covered under Coverage -D Additional Living Expenses in a Homeowners policy?

Coverage -D Additional Living Expenses (ALE) in a Homeowners policy is designed to cover the additional costs a homeowner incurs as a result of being displaced from their home due to a covered loss, such as a fire or severe damage. This typically includes expenses necessary to maintain a normal standard of living during the time the home is uninhabitable.

Among the expenses listed, mortgage payments during a temporary relocation are not considered additional living expenses. This is because mortgage payments are considered a fixed obligation and do not fit the description of expenses incurred due to the need for temporary housing. In contrast, costs such as temporary housing, utilities for the temporary residence, and food expenses are all variable costs that arise as a direct result of having to live elsewhere while repairs are made to the home. These expenses are incurred because the homeowner cannot access or live in their original residence, thus they are appropriate for reimbursement under Coverage -D.

This distinction is essential for understanding the scope of coverage under a homeowners policy, as mortgage payments remain the responsibility of the homeowner regardless of where they are living temporarily.