Which of the following coverages in dwelling and homeowners policies is related to indirect losses?

Loss of use coverage is specifically designed to address indirect losses that occur when a dwelling becomes uninhabitable due to a covered peril. This form of coverage helps policyholders by providing financial support for additional living expenses incurred while the home is being repaired or rebuilt. These expenses can include hotel bills, increased food costs, and other associated costs necessary to maintain a standard of living during the period of displacement.

In contrast, personal property coverage pertains to the direct loss of personal items due to damage or theft, liability coverage protects against claims of bodily injury or property damage to others, and replacement cost coverage relates to how the value of the damaged property is compensated based on current market replacement values. While each of these coverages serves vital roles in an insurance policy, loss of use is the specific coverage that directly addresses the situation where the home is not livable, leading to indirect financial consequences.