The basic homeowner policy will cover:

• A. Summer cottage.
• B. Replacement cost of loss.
• C. Additional living expenses.
• D. Scheduled articles

Answer: (C)

Think about what happens to your living situation when your home is damaged by a covered peril and you have to live somewhere else during repairs. The basic homeowners policy includes Loss of Use protection, and the part called Additional Living Expenses pays the extra costs you incur to maintain your normal standard of living while your dwelling is uninhabitable—things like hotel rooms, meals, and other increased living costs. This coverage is designed to keep you from facing a big drop in your standard of living just because you can’t stay in your home during repairs.

A summer cottage isn’t automatically covered by the basic policy as a separate residence unless you’ve added it with endorsements or a separate policy. Replacement cost for personal property isn’t guaranteed in the basic form, since personal items are typically paid on an actual cash value basis unless you have replacement-cost coverage or specific endorsements. Scheduled articles require a separate endorsement to insure specific high-value items. So the aspect most commonly included in a basic homeowners policy that directly helps you while your home is being repaired is Additional Living Expenses.