Additional living expenses

What it means

Additional living expenses is part of Coverage D, Loss of Use, in the standard ISO homeowners form (HO 00 03). If a covered loss makes the part of the home where you live not fit to live in, the policy covers “any necessary increase in living expenses” so your household can keep its normal standard of living. That typically means the difference: hotel or rent, extra meals out, extra mileage.

Payment lasts for the shortest time needed to repair or replace the damage or, if you move permanently, to settle elsewhere. If a civil authority bars you from your home because of covered damage next door, the form covers ALE for no more than two weeks.

Why it matters to your claim

ALE only applies if the underlying loss is covered, and it has its own limit on your declarations page. Keep receipts for everything. The HO 3 form lists receipts for additional living expenses among the records you must provide. Flood is different. The National Flood Insurance Program policy does not pay additional living expenses at all. FEMA’s Individuals and Households Program may help with temporary housing after a declared disaster, but FEMA says it cannot cover losses already covered by insurance. Check your declarations page or ask your insurer how ALE works on your policy. See water damage coverage.