What does the Additional Living Expenses coverage under Habitational Insurance Policies cover?

Additional Living Expenses (ALE) coverage under Habitational Insurance Policies is designed to help policyholders manage the increased costs associated with living elsewhere after a covered loss makes their home uninhabitable. When an insured event occurs—such as a fire or a severe storm—that forces the homeowner to move out temporarily, this coverage will reimburse the policyholder for reasonable additional living expenses incurred.

This includes costs for hotel stays, increased food expenses, and other necessary living expenses that arise as a result of the loss. The focus is on the additional, unexpected costs that the homeowner would not typically incur if their home were still livable. While reimbursement for property damage and costs related to upgrading the property may be part of an overall insurance policy, they do not specifically fall under the Additional Living Expenses coverage, which is explicitly aimed at covering only the increased costs of temporary housing and related necessities after a covered incident.