What is the maximum allowable percentage for loss of use benefits under the dwelling coverage?

The maximum allowable percentage for loss of use benefits under dwelling coverage is indeed 20%. This means that if a policyholder can no longer live in their home due to a covered loss, they can claim up to 20% of the dwelling coverage limit to cover additional living expenses incurred during the period of displacement.

This percentage is important because it provides a cap on how much assistance the insurance company can offer for these extra costs, ensuring that policyholders receive support without setting an unlimited liability on the insurer. Understanding this limit helps both policyholders and professionals in the insurance field navigate claims more effectively and manage expectations regarding the benefits available during the recovery process.