It can be devastating when something damages your home and makes it impossible to inhabit. You’ll spend more than you ever bargained for to get a place to stay while fixing damages. Fortunately, this is where Additional Living Expenses Insurance (ALE).
Want to learn more about how this can benefit you and your family? Keep reading to the end.
What is Additional Living Expenses Insurance (ALE)?
Additional living cost (ALE) insurance is a form of coverage that a homeowner’s, condominium owner’s, or renter’s insurance policy offers. It pays for a policyholder’s additional living expenses if temporarily displaced from their home. This policy typically amounts to 10% to 20% of the total house insurance coverage.
How Additional Living Expenses Insurance Works
Additional living expense insurance can cover a monthly food bill increase due to needing to eat out. It also covers loss of income if the insured has been renting out parts of their house to a renter.
In essence, the goal of the insurance is to reimburse the insured for additional expenses. However, you must incur these expenses from temporary displacement from your home by elements like a fire or flood.
Consider what would happen if a storm demolished your home and you and your family had to relocate. Imagine staying away for many months while they repair it. Hotel stays and restaurant meals are covered by ALE coverage until you can return home.
Other goods that receive coverage from ALE include:
- Clothes charges—The insurer if you have to send your laundry out. It comes in, especially because you don’t have access to a washer and dryer at your temporary apartment.
- Rental furniture—Costs of renting one-of-a-kind items that you’re familiar with may be covered and included.
- Costs of keeping items under exceptional circumstances
- Costs of pet relocation or boarding during a period of transition