# Additional Living Expenses

_Glossary_

Canonical: https://www.claimspages.com/learn/glossary/additional-living-expenses/

Coverage that reimburses policyholders for the reasonable extra costs incurred to maintain their normal standard of living while their home is uninhabitable after a covered loss.

Additional Living Expenses (ALE) coverage — sometimes labeled Loss of Use coverage — reimburses policyholders for the reasonable increase in living costs they incur when a covered loss renders their residence uninhabitable. ALE covers only the additional amount above the policyholder's normal baseline expenses; it is not a complete reimbursement of all living costs during displacement.

Covered expenses typically include temporary rental housing, increased food costs (e.g., restaurant meals when a kitchen is unavailable), laundry costs, storage fees for displaced personal property, and extra commuting expenses. ALE coverage is subject to both a dollar limit (commonly 20–30% of the dwelling coverage limit) and a time limit (typically 12–24 months), ending when the home is repaired and habitable, or the limit is exhausted.

Maintaining thorough documentation of all additional expenses — with receipts and a clear accounting of normal pre-loss baseline costs — is essential to maximizing the ALE benefit and avoiding disputes with the insurer over the amount owed.



After a kitchen fire renders a home uninhabitable, a family rents an apartment at $2,800/month while their normal mortgage payment is $1,800/month. The $1,000 monthly difference, plus increased food costs and pet boarding fees, qualifies as ALE. A family displaced for six months may accumulate $8,000–$15,000 in additional living expenses depending on local rental markets.