What part of a dwelling policy covers loss of income due to property damage?

Loss of Use coverage is the correct answer because it specifically addresses the loss of income that a property owner may experience if their dwelling becomes uninhabitable due to a covered event. This part of a dwelling policy compensates homeowners for the loss of rental income if they cannot rent out their property because of damage.

In cases where a property is rented out, if it suffers damage from a peril covered by the policy (like fire or water damage), Loss of Use coverage ensures that the homeowner can recover the rental income they would have been earning during the period of repairs. This can be crucial for maintaining financial stability during the restoration process.

Additional Living Expenses coverage, while also related to temporary living situations, typically applies to homeowners who are displaced from their primary residences and need to cover costs related to temporary accommodations, meals, and other living expenses, not specifically loss of rental income.

Liability coverage protects against claims made by third parties for bodily injury or property damage and does not deal with loss of income from property damage. Medical Payments coverage is focused on covering the medical costs for injuries occurring on the homeowner's property, rather than addressing any financial losses related to loss of rental income or living expenses.