Idaho Property and Casualty Practice Exam 2026 - Free Practice Questions and Study Guide

The statement regarding Coverage D of a Homeowners Policy being focused on additional living expenses is accurate. Coverage D, often referred to as "Loss of Use," provides financial assistance for policyholders when their residence cannot be occupied due to a covered loss. This coverage includes expenses for additional living costs incurred while the home is being repaired or rebuilt, which ensures that the homeowners can maintain their standard of living despite the temporary displacement.

Furthermore, Coverage D typically encompasses additional living expenses—such as those for temporary housing, meals, and other necessary costs that contribute to maintaining the insured's quality of life during the repair period. This is a critical element of the policy, as it protects homeowners from the financial strain of having to pay for additional housing while still covering their home-related expenses.

The options that reference the specifics of home schooling, theft of a boat away from premises, or income loss from an incidental business do not align with the enhancements typically found in homeowners policies. Homeowners insurance generally has rules regarding business activities and theft coverage, making those options less relevant in this context.