Arizona Adjuster Practice Exam

Which of the following is an example of loss of use coverage under a homeowners policy?

1. Temporary housing expenses

2. Replacement of damaged property

3. Personal property coverage

4. Injuries on the premises

The correct answer is: Temporary housing expenses

Loss of use coverage under a homeowners policy provides financial assistance for living expenses when a home becomes uninhabitable due to a covered event. This type of coverage helps policyholders pay for temporary housing and related expenses while their home is being repaired or rebuilt. Therefore, temporary housing expenses are a direct example of loss of use coverage, as they reflect the additional costs incurred when the home cannot be occupied. Replacement of damaged property relates to the actual repair or rebuilding of the home or its contents, and personal property coverage pertains to the protection of the homeowner's belongings. Injuries on the premises generally fall under liability coverage, which addresses the homeowner's responsibility for accidents occurring on their property. All these options pertain to different aspects of a homeowners policy but do not specifically illustrate loss of use coverage like temporary housing expenses do.