Which coverage in a dwelling policy addresses indirect losses?

The coverage that addresses indirect losses in a dwelling policy is Additional Living Expenses. This coverage is designed to provide financial support for a policyholder who must temporarily relocate due to a covered loss. It covers the extra costs incurred while living away from home, such as hotel bills, meals, and other necessary expenses that exceed what the homeowner would typically pay if they were still living at home.

Indirect losses refer to the expenses that arise not from the direct damage to the dwelling or property itself, but from the consequences of that damage. While the dwelling coverage protects the structure itself and personal property covers the contents inside, these are more focused on direct losses. Other Structures coverage addresses separate buildings on the property but similarly does not cover the additional expenses incurred during displacement. Therefore, Additional Living Expenses is the critical coverage that specifically targets the financial impact of having to live elsewhere as a result of a loss, thereby categorizing it as the correct answer.