Additional Living Expenses
Coverage that pays for hotel, meals, and other costs when a covered loss forces you to temporarily leave your home.
Additional living expenses (ALE), also called loss-of-use coverage (Coverage D), reimburses you for the necessary increase in living costs when a covered loss makes your home uninhabitable and you must temporarily live elsewhere. Covered expenses include hotel or rental costs above your normal housing costs, restaurant meals above normal grocery costs, laundry, storage, and pet boarding if necessary.
ALE limits are typically 20–30% of the dwelling coverage limit, with a time limit of 12–24 months depending on the policy. If your home requires 18 months to rebuild, ALE will cover qualifying costs for that entire period up to the dollar limit. Keep all receipts—you must document every claim for additional expenses.
Note that ALE covers the increase in costs, not all living costs. If your normal monthly housing cost is $2,000 and you spend $3,500 in a hotel, ALE covers the extra $1,500 per month, not the full $3,500.
Real-World Example
While their fire-damaged home was being rebuilt over nine months, the family's ALE coverage paid $27,000 in hotel and meal expenses above their normal living costs.