What does additional living expenses mean in insurance?

Life throws curveballs. A fire, a flood, a devastating storm – these events can leave your home uninhabitable. That's where additional living expenses (ALE) insurance comes in.

Additional living expenses are an invaluable form of coverage that is included in your home insurance policy. It kicks in when you have to move out of your home while it's being repaired after an insured loss. Imagine this: your home is damaged, and you need temporary housing, meals, and other necessities. ALE coverage helps you cover those unexpected costs, reimbursing you for expenses beyond your normal daily living, until you can return home.

Don't let unexpected displacement add to the stress; learn how ALE insurance can protect your peace of mind and your wallet.

What you need to know about additional living expenses insurance

  • Additional Living Expenses (ALE) insurance covers your essential living costs outside your home if your property is uninhabitable.
  • Coverage applies to homeowners and renters policies.
  • ALE coverage limits are typically 20-30% of your home's replacement cost. There may be options for customization for additional costs.
  • Additional living expenses do not cover upgrades in living standards (e.g., larger temporary housing), food when cooking facilities are available, or standard bills like mortgages and utilities.
  • The insurer will cover costs until your home is repaired, or until the coverage limit/policy time cap is up - whatever comes first.