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Additional Living Expenses (ALE)

Definition

Coverage that pays for increased costs of living when your home is uninhabitable due to a covered loss. ALE covers hotel stays, restaurant meals, temporary rentals, and other expenses above your normal living costs. This is typically Coverage D on a homeowners policy.

When This Matters

A fire makes your home uninhabitable for 3 months. Your normal monthly housing cost is $2,000. A temporary rental costs $3,500. ALE covers the $1,500 difference each month.

Related Terms

Dwelling CoverageLoss of UseHomeowners Insurance

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