In the context of homeowners policies, what does Coverage D refer to?

Coverage D in homeowners policies refers to Fair Rental Value, which is the amount of money the insurance company will pay for the loss of rental income when a property becomes uninhabitable due to a covered loss. Essentially, if a homeowner has a rental property that is damaged and cannot be rented out during the repair process, Coverage D will help recoup the loss of income for that time period.

Understanding this coverage is critical for homeowners who may rely on rental income and need to ensure that their policies adequately protect their financial interests in such situations. Coverage D helps maintain financial stability during the repair process, covering the rental value of the property the homeowner would otherwise have received if the property was habitable.

The other options pertain to different aspects of homeowners insurance but do not relate specifically to Coverage D. Personal property typically falls under Coverage C, replacement costs are usually addressed in terms of Coverage A (dwelling coverage), and earth movement is generally excluded from homeowners policies or limited to specific coverage provisions.