Which of the following costs associated with the house fire would be covered under Coverage E?

Coverage E in a homeowners insurance policy pertains to Additional Living Expenses (ALE) or Loss of Use coverage. This type of coverage is designed to help policyholders manage the increased costs of living that can occur when their home becomes uninhabitable due to a covered peril, such as a house fire.

When a home is damaged to the extent that the occupants cannot live there, they may need to stay in a hotel temporarily. The hotel bill incurred from such accommodations is a direct result of the fire damaging the home and is thus covered under Coverage E. This coverage typically includes expenses for hotel stays, meals, and other necessary costs that exceed the family’s normal living expenses while they are displaced.

In contrast, other options like monthly grocery costs, mortgage payments, and structural repairs do not align with the intent of Coverage E. Grocery costs are usually ongoing regular expenses and not directly tied to the displacement. Mortgage payments are obligations that continue regardless of the livability of the home. Structural repairs, while critical to restoring the home, fall under property coverage rather than living expense coverage.