In homeowners insurance, what does 'additional living expenses' coverage provide?

'Additional living expenses' coverage is designed to help policyholders with the costs incurred when their home becomes uninhabitable due to a covered event, such as a fire or severe storm damage. This coverage can include expenses for temporary housing, such as hotel fees or rent for a temporary residence, as well as related living costs like meals and other necessary expenses that go beyond the policyholder's normal living expenses.

Choosing funds for temporary housing during repairs as the answer correctly highlights the primary purpose of this coverage, which is to alleviate financial burdens related to alternative accommodations while the insured's home is being restored to a livable condition. This support is vital as it ensures homeowners do not face additional financial stress during an already challenging time.