Which of the following is an example of an additional living expense covered by property insurance?

An example of an additional living expense covered by property insurance is the cost of hotel accommodations while the home is being repaired. This coverage is designed to help policyholders maintain their standard of living when their home is uninhabitable due to a covered loss, such as fire or severe damage.

Property insurance policies often include provisions for additional living expenses (ALE) that reimburse homeowners for necessary expenses incurred when they cannot live in their homes. This may encompass hotel stays, temporary rentals, and meals, enabling them to manage their living situation during the repair process.

In contrast, damage to personal property due to theft falls under property coverage rather than additional living expenses. Similarly, the loss of market value of the home is not covered as it reflects a decline in the home's overall worth rather than any immediate costs incurred by the homeowner. Lastly, costs associated with home renovations are typically not classified as additional living expenses; they relate to improvements rather than temporary living arrangements prompted by a serious issue in the home.