Additional Living Expense Coverage
What is Additional Living Expense Coverage?
Additional Living Expense Coverage, also known as ALE coverage or Loss of Use coverage, may refer to a type of insurance coverage that reimburses policyholders for necessary and reasonable increases in living expenses due to a covered loss. ALE coverage is part of the broader category of Property Insurance, and is most commonly found in Homeowner’s and Renter’s Insurance policies.
Additional Living Expense Coverage in More Detail
The purpose of ALE coverage is to help provide policyholders with financial assistance when they are unable to live in their home due to a covered loss. Covered losses may include, but are not limited to, damage to the home or property caused by fire, smoke, hail, wind, theft, vandalism, or other insured perils.
The amount of reimbursement available through ALE coverage varies by policy, but typically covers reasonable costs for temporary housing, meals, and other living expenses due to displacement from the home. In addition, ALE coverage may also reimburse policyholders for travel expenses associated with the relocation, such as hotel bills, meals, and transportation costs.
It is important to note that ALE coverage does not reimburse policyholders for any losses due to the actual damage to the property, such as loss of furniture or other personal belongings. These costs may be covered under a separate policy, such as Personal Property Insurance.
In summary, Additional Living Expense Coverage, also known as ALE coverage or Loss of Use coverage, is a type of insurance coverage that reimburses policyholders for necessary and reasonable increases in living expenses due to a covered loss. ALE coverage is part of a broader property insurance policy, and may reimburse policyholders for temporary housing, meals, travel expenses, and other living expenses associated with displacement from the home due to a covered loss.
Subscribe to The Shield
A bite-sized newsletter outlining industry insights & best practices for high-growth companies.