In what scenario would the insured receive payment for additional coverages?

The correct answer is that the insured would receive payment for additional coverages for incidental expenses accompanying losses. This option accurately reflects situations where policies provide coverage for certain extra costs that arise as a direct result of a covered loss.

Insurers often structure personal lines policies to include various additional coverages, which can help policyholders manage unforeseen expenses that occur due to a loss event. For example, if a home is damaged due to a fire, the insured may incur costs such as temporary housing, additional living expenses, or cleanup costs. These incidental expenses can be covered under the additional coverages portion of the policy, providing financial relief during a difficult time.

Understanding that incidental expenses are crucial, as insurance policies are designed not only to cover the direct damage to property but also to assist policyholders in handling the related impacts of those damages. In this way, the insured can focus on recovery without being burdened by immediate financial stress due to extra costs incurred from the loss.