If you can’t stay in your home after a covered disaster, many homeowners policies will pay for additional living expenses (ALE). Those are temporary housing costs if you move into a hotel or apartment while your home is being repaired or rebuilt. 

How does ALE work?

• If your home is unlivable, ALE will help pay for living expenses that are beyond your normal living expenses.
• Your insurance policy will not pay for all of your living expenses.
• It will only pay the difference between your previous living expenses and your new temporary expenses.
• So, your policy may pay for your hotel or rental stay. But you will still be responsible for your mortgage payment. 

 ALE typically covers:  

• Hotel bills. 

• Reasonable restaurant meals (if you’re staying in a hotel room with no kitchen). 

• Other living costs above and beyond your normal housing expenses while you can’t live in your home because of damage. 

Keep all receipts for any additional costs you have. The insurance company will need the receipts to reimburse you.  

Does ALE have limits?

Some policies have a dollar limit; some may also have a time limitation. These limits are separate from any coverage you receive to rebuild or repair your home and replace your belongings. Ask your insurance agent, company, or adjuster what your policy covers and about any time or dollar limits that apply. 

If you need help with claims or coverage, contact your state department of insurance.