What is Additional Living Expenses (ALE)?
Additional Living Expenses (ALE) is a type of coverage included in most homeowners and renters insurance policies. This coverage helps to cover the extra costs of living elsewhere if your home becomes uninhabitable due to a covered event, such as fire, severe storm damage, or other insured disasters. ALE typically covers expenses like hotel bills, rental homes, restaurant meals, and even transportation costs that go beyond your normal expenses.
In most cases, ALE coverage is limited to a certain percentage of your dwelling coverage or capped at a specific dollar amount. It ensures that during the period of displacement, you don’t face an undue financial burden for temporary accommodations and related costs.
It’s important to note that ALE coverage only applies when the cause of the damage is a covered peril under your insurance policy. If the damage is due to an excluded event, such as floods or earthquakes (unless those coverages are specifically added), ALE won’t apply. ALE provides peace of mind that, during recovery, you can maintain a reasonable standard of living until your home is repaired or rebuilt.