Sandys house was damaged in a hurricane. She has an HO-3 homeowner insurance policy for...

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Accounting

Sandys house was damaged in a hurricane. She has an HO-3 homeowner insurance policy for $200,000 on her house. The police told her that she had to evacuate her house. Sandy left town and had to live in a motel for 2 weeks. Which of the following is most correct?

A. Sandys motel and living expenses while she is displaced from her home, up to $40,000, are covered by her homeowner insurance policy Part D (Loss of Use).

B. Sandys motel and living expenses are not covered by any type of insurance.

C. Sandys motel expenses are covered by Part D (Loss of Use) but she will not be reimbursed for meals.

D. Sandys HO policy will not cover these expenses because damage from hurricanes is considered to be flood damage which is not covered by a standard HO-2 policy.

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