Additional Living Expense (ALE)

Additional Living Expenses, often referred to as ALE coverage or Coverage D in your homeowner’s policy, provides a coverage to assist in paying for expenses in the event that a covered peril (e.g. a house fire) damages the covered property so severely that it is rendered uninhabitable. If you are forced to pay for temporary living quarters like a hotel or furnished apartment and eat your meals at restaurants during the repair process, ALE coverage will supply an agreed-upon amount up to a certain percentage of your dwelling coverage. This percentage is typically 20%, so if a property was insured for up to $500,000 in coverage, up to $100,000 would be available to cover your additional living expenses. ALE coverage comes with a limit, which might be anywhere from 6 months to as much as 12 or even 24 months. Costs covered by Additional Living Expenses can include food costs, rental accommodations, storage and moving fees, pet boarding, and even laundry expenses. ALE coverage is intended to allow the insured to maintain their customary quality of life while recovering from a loss.

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