When a person’s home has been destroyed due to a disaster, additional living expenses (ALE) coverage provides money for living in a hotel while the home is uninhabitable. According to Insurance.com, the coverage can also pay for expenses such as renting temporary housing, the cost of storage fees, and even eating out. Other costs that can be covered through ALE include boarding your pet, the costs of doing your laundry at the laundromat, and more.
While most homeowners policies provide coverage of ALE, it is only available if the home is uninhabitable due to a disaster, such as a fire, wind, or tornado damage. It does not cover additional living expenses incurred as a result of voluntary renovation projects. The amount of coverage available is typically based on a percentage of your dwelling coverage. For example, if you have $200,000 in dwelling coverage and your ALE has a ceiling of 20 percent, your ALE coverage could be up to $40,000.