What benefit does "loss of use" coverage provide to policyholders?

"Loss of use" coverage is designed to assist policyholders by providing financial support for household expenses that arise when their property becomes temporarily uninhabitable due to a covered event, such as fire or severe storm damage. This coverage acknowledges that, in addition to the physical loss of property, homeowners may incur additional costs while their residence is being repaired or rebuilt. Such expenses can include hotel bills, meals, and other necessary costs that individuals wouldn't normally encounter if they were residing in their home.

The other options do not align with the specific purpose of "loss of use" coverage. Legal fees relate to disputes rather than living expenses, full replacement of property value pertains to property insurance rather than the costs incurred while displaced, and compensation for rental income loss deals with a different type of insurance related to income protection. Hence, option B accurately captures the essence of what "loss of use" coverage aims to provide for policyholders.