Which insurance provides payment for extra expenses caused by an inability to reside in a dwelling due to a covered loss?

The correct answer is Additional Living Expense Insurance. This type of insurance specifically covers the additional costs that policyholders might incur when they are unable to live in their home due to a covered loss, such as damage from fire or other hazards. It helps cover necessary expenses like hotel bills, restaurant meals, and other costs that may arise while the home is being repaired or rebuilt.

Understanding the role of Additional Living Expense Insurance is crucial, as it ensures that individuals are not financially burdened simply due to housing displacement arising from an insured event. This coverage is vital for maintaining the policyholder's standard of living during the restoration period.

In contrast, Loss of Use Insurance typically refers to the broader category that includes Additional Living Expense coverage among other potential benefits. Property Damage Insurance generally relates to the physical damage to property itself, rather than the costs incurred from losing the ability to reside there. Temporary Housing Insurance, while it may seem relevant, is not a standard term used in the insurance industry and could be viewed as a less accurate descriptor for this specific type of coverage.