What percentage of the dwelling coverage is paid for "loss of use" under a dwelling broad or special form?

The correct percentage for "loss of use" coverage under a dwelling broad or special form is indeed 20%. This coverage, also known as additional living expenses, is designed to support policyholders who cannot reside in their homes due to a covered loss.

In a dwelling broad or special form policy, a standard provision allows the insured to receive compensation for necessary costs incurred while their home is uninhabitable. This typically includes expenses such as temporary housing, meals, or other related costs. The 20% figure is significant because it provides a clear understanding of the limits on benefits available for loss of use.

This coverage is crucial for homeowners, as it assures them that they can manage their living expenses during the repair period without enduring financial hardship. The specified percentage reflects a common standard in the insurance industry, which is often used to help policyholders determine how much coverage they need based on their property's insured value.

Understanding this standard helps adjusters and policyholders effectively navigate claims related to loss of use and ensures that individuals are adequately compensated for their reliance on this crucial insurance feature during claims processing.