Additional Living Expenses (ALE)
Additional Living Expenses (ALE) is the part of your homeowners (or renters) insurance that covers the extra costs you incur when you can't live in your home due to a covered loss.
Definition maintained by the InsurTool Editorial Team. Last reviewed .
Core Takeaways
- Additional Living Expenses (ALE) covers extra costs when you can’t live in your home due to a covered loss.
- ALE is also known as “loss of use” coverage.
- Typical expenses covered: temporary housing, meals, utilities, transportation.
- ALE limits are usually a percentage of your dwelling coverage (often 20%).
What is Additional Living Expenses (ALE)?
In plain English: If your home becomes unlivable due to fire, flood, or other covered damage, ALE pays for your temporary housing and other extra expenses until you can move back.
What ALE Covers
ALE coverage typically includes these expenses:
- Temporary housing (hotel, apartment, rental house)
- Meals (the extra cost over your normal grocery expenses)
- Utilities (electricity, water, internet at your temporary home)
- Transportation (extra gas, public transit costs)
- Storage for your belongings
- Laundry services
- Pet boarding
| Expense Type | Example Cost | Typically Covered? |
|---|---|---|
| Hotel stay (3 months) | $4,500 | Yes |
| Restaurant meals | $2,000 | Yes (extra over normal) |
| Storage unit | $500 | Yes |
| Extra gas | $300 | Yes |
| Pet boarding | $800 | Yes |
| Vacation rental upgrade | $1,500 | No (only reasonable costs) |
ALE Limits
ALE limits are usually expressed as a percentage of your dwelling coverage:
- Most policies include 20% of dwelling coverage as ALE
- For a $500,000 home, that’s $100,000 in ALE coverage
- You can usually increase ALE limits for an additional premium
- ALE coverage has a time limit (typically 12-24 months)
Important: I’ve seen homeowners underestimate how long repairs can take. If you live in a high-cost area or have a large home, consider increasing your ALE limits. Extended stays in hotels or temporary rentals can get expensive quickly.
ALE vs. Loss of Use
ALE and loss of use are often used interchangeably, but there’s a subtle difference:
- ALE: Covers the extra expenses you incur
- Loss of Use: Covers the loss of rental income if you rent out your property
How to File an ALE Claim
- Step 1 — Contact your insurer immediately
- Step 2 — Document all expenses (keep receipts)
- Step 3 — Keep records of normal expenses for comparison
- Step 4 — Submit receipts and documentation
Authoritative Sources
For more information on Additional Living Expenses, visit these trusted resources:
- Insurance Information Institute (III)
- National Association of Insurance Commissioners (NAIC)
- California Department of Insurance
Frequently Asked Questions
Is ALE included in standard homeowners insurance?
Yes, ALE is typically included in standard homeowners insurance policies as Coverage D (Loss of Use). The amount varies by policy.
How long does ALE coverage last?
ALE coverage typically lasts until your home is repaired or until your ALE limit is exhausted, whichever comes first. Most policies have a time limit of 12-24 months.
Does renters insurance have ALE?
Yes, renters insurance also includes ALE coverage. It works the same way—covering temporary housing and extra expenses if your rental becomes unlivable.
Can I stay in a luxury hotel with ALE?
ALE covers “reasonable” expenses. If you normally live in a modest home, staying in a luxury hotel might not be considered reasonable. Your insurer will determine what’s appropriate.
About this definition
Written and checked against the primary sources linked on this page by the InsurTool Editorial Team. Definitions describe how these terms are used in the United States; policy wording differs between insurers, and state law changes the meaning of some terms. Your own policy document is the authority for your coverage.
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