The Johnson family home is covered by DP-3. What coverage reimburses them for hotel and dining expenses after a fire?

Coverage E in the context of a DP-3 policy refers to Additional Living Expenses (ALE). This coverage is specifically designed to reimburse policyholders for costs associated with temporary living arrangements when their home is uninhabitable due to a covered loss, such as a fire. This can include expenses for hotel stays, dining out, and other necessary expenditures that arise because the home cannot be occupied.

In a DP-3 policy, Coverage A provides coverage for the structure of the home itself, while Coverage B typically covers other structures on the property. Coverage C pertains to personal property inside the home. Each of these coverages serves a different purpose, focusing more on the physical property and belongings rather than the living expenses incurred during the displacement. Thus, for the Johnson family to receive reimbursement for hotel and dining expenses following a fire, Coverage E is the correct choice as it is specifically intended to address those temporary living costs.