The amount an insurer pays under Coverage D (Loss of Use) depends on which factor?

The correct answer relates to how much coverage is provided under the Loss of Use section, which is part of a homeowners insurance policy. This coverage is designed to assist policyholders with additional living expenses when their home becomes uninhabitable due to a covered loss, such as fire or severe storm damage.

The amount an insurer pays under Coverage D is directly tied to the total amount of coverage the insured has on the dwelling itself. If a homeowner has a higher coverage limit for their dwelling, the Loss of Use coverage will correspondingly be greater because insurers typically set Loss of Use limits as a percentage of the total dwelling coverage. This means that the higher the dwelling coverage, the more financial support the policyholder receives for additional living expenses while they are displaced.

Factors like how long the dwelling has been occupied, whether it's owner-occupied or rented, or the duration for which the dwelling is uninhabitable may affect the claim process or the insurance provider's operations but they do not alter the amount that is paid out under Coverage D as directly as the dwelling coverage amount does.