Coverage D and E typically cover which kind of losses?

Coverage D and E in personal lines insurance, especially within homeowners policies, primarily address indirect or consequential losses. This coverage is designed to compensate the policyholder for losses that are not a result of direct physical damage to property, but rather losses that are incurred as a result of such direct damage.

For example, Coverage D typically refers to loss of use or additional living expenses, which occur when a home becomes uninhabitable due to a covered peril, like fire or flooding. During this period, the policyholder may need to rent a temporary residence or cover additional living expenses, which are considered indirect losses stemming from the original damage.

Coverage E often deals with personal liability and medical payments to others, which can arise from incidents that occur on the insured’s property or as a result of the insured's actions. This coverage steps in to deal with legal liabilities or medical costs incurred by others due to actions of the policyholder, representing a consequential loss in the scope of personal liability.

In contrast, direct losses refer specifically to physical damage to the insured property itself, while physical and partial losses describe a narrower focus on the state of the property itself rather than the broader implications of being unable to use it or the costs associated with liability. Thus, the focus on