Which situation would typically trigger Coverage D in a Dwelling Policy?

Coverage D in a Dwelling Policy, also known as "Loss of Use" coverage, is designed to provide financial assistance for additional living expenses incurred when a covered property becomes uninhabitable due to a covered loss. This typically includes scenarios where the dwelling cannot be lived in, such as when a fire or other insured peril causes significant damage.

The situation involving a fire that makes the property uninhabitable perfectly aligns with the purpose of Coverage D. It compensates the policyholder for costs such as temporary housing, increased living expenses, and other related expenses that arise as a result of the inability to live in the home due to damage caused by the fire.

In contrast, a flood damaging the property would typically not trigger Coverage D unless flood damage is specifically included in the policy, which generally requires a separate flood insurance policy. Theft of personal belongings would be more related to property covered under personal property protection rather than loss of use. Lastly, damage to detached garages does not directly impact the habitability of the primary dwelling, which is essential for Coverage D to be activated.