Home Home insurance Home Insurance Basics Additional living expenses (ALE) coverage: What it covers and how to use it Additional living expenses (ALE) coverage: What it covers and how to use it ALE coverage pays the extra cost of living somewhere else when your home becomes unlivable after a covered loss — within a dollar limit and a time limit your policy sets. View Carriers Please enter valid zip Compare top carriers in your area Written by Alisha AmbreAlisha AmbreAlisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.VIEW FULL PROFILE | Reviewed by Nupur GambhirNupur GambhirEditor-in-ChiefNupur Gambhir is the editor-in-chief of Insure.com and a licensed life, health and disability insurance agent in New York with seven years of experience covering insurance. Her expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Balance, The Financial Gym and MSN. She holds a BA in Economics from The Ohio State University.VIEW FULL PROFILESee moreSee less | Updated onJune 19, 2026 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Additional living expenses (ALE) coverage, also called loss-of-use coverage, reimburses the added costs of living elsewhere while your home is repaired or rebuilt after a covered loss. It comes standard in most homeowners, renters, and condo policies, and it covers everyday displacement costs like a hotel or rental, restaurant meals, pet boarding, storage, and extra transportation. The point is to keep your life as close to normal as possible during a hard stretch — not to leave you covering hotel bills and takeout on your own while your home is out of commission. Save every receipt from day one ALE only reimburses what you spend above your normal costs, so keeping receipts and a rough record of your usual spending is what makes a claim go smoothly. Before you start spending, call your insurer to confirm the loss is covered and ask what they need from you. What is additional living expenses (ALE) coverage? Additional living expenses coverage pays the extra costs of living away from home when a covered event makes your home uninhabitable. It reimburses you for those costs while you wait for repairs or a rebuild, so a fire, storm, or similar covered loss doesn’t also become a financial scramble for a place to stay. It’s standard in most homeowners, renters, and condo policies, though the details — how much it pays and for how long — vary by policy. Used incorrectly, ALE can lead to denied claims and surprise out-of-pocket costs, which is why it pays to know how it works before you need it. Key Takeaways ALE is standard in most homeowners, renters, and condo policies, and it’s also called loss-of-use coverage. It covers displacement costs like temporary housing, meals, storage, pet boarding, and extra transportation when a covered loss makes your home unlivable. Two limits apply — a dollar cap (often a percentage of your dwelling or property coverage) and a time cap (commonly around 12 months). Documentation is everything. Save receipts, track your normal spending, and confirm coverage before you spend. What does ALE cover? ALE covers the real-world costs of being displaced — temporary housing, meals, and the related expenses that come with living somewhere that isn’t home. It’s built to maintain your normal standard of living, not upgrade it. A local Holiday Inn is covered. The Four Seasons is probably not. CoveredNot coveredHotel or temporary rental costsVoluntary moves, like for a renovationMealsCosts unrelated to a covered claimPet boardingExpenses already within your normal budgetStorage costsCosts above your policy limitExtra transportation costsLuxury upgrades beyond your usual standard of living Powered by: The everyday costs ALE typically reimburses include: Temporary housing. A hotel or short-term rental that matches your usual standard of living. Meals. The extra cost of eating out when you don’t have a kitchen. Laundry. Laundry or dry-cleaning service if you normally have a washer and dryer at home. Furnishings and storage. Furnishing a temporary rental and storing your undamaged belongings while repairs happen. Pet boarding. Boarding costs when your pets can’t stay with you. Transportation and utilities. Added mileage if your temporary home is farther out, plus any utility costs above what you normally paid. For a long displacement, think rental, not hotel If repairs will take a while, a short-term rental is usually a better fit than a hotel. Public adjuster Raymond Altieri Jr. of Altieri Insurance Consultants suggests getting settled somewhere you can be comfortable for the long haul, so you’re not pressured into a rushed decision later. Insurers often try to cap hotel stays around 30 days and help place you in a comparable rental nearby. How does ALE work if you stay with family or friends? ALE still applies even when you don’t pay for a hotel or rental. If staying with family or friends raises their household costs, ALE can reimburse those extra expenses — the test is simply whether the cost exists only because you were displaced. Expenses that may qualify include: A share of higher utility bills Groceries above the household’s normal spending Any other cost that wouldn’t exist if you were still in your own home What to read next Home insurance inspection checklist How to find a homeowners insurance policy How to switch home insurance Working from home: The remote worker's guide to insurance Homeowners insurance basics Does homeowners insurance cover theft? Title insurance: What is it and do you need it? Why you should hire a public insurance adjuster Home insurance: How to avoid being underinsured Do I need homeowners insurance? Guide to home insurance for new construction Does home insurance cover garages? How having a roommate impacts your homeowners insurance coverage How can I get homeowners insurance after non-renewal? How to shop for homeowners insurance in five steps Can a homeowners insurance company drop you? How to read your homeowners insurance policy How much home insurance do I need? How to create a home inventory list Your guide to home insurance deductibles Home insurance exclusions: What does homeowners insurance not cover? Types of homeowners insurance What does homeowners insurance cover? 11 astonishing things covered by home insurance Show more ALE pays the difference, not the whole bill ALE reimburses only what you spend above your normal costs, not your total spending. If you usually spend $400 a month on groceries and now spend $700 eating out, ALE covers the $300 difference — not the full $700, according to Michael Hickle, an executive general adjuster at Sill Public Adjusters. Once you’re somewhere with a kitchen again, restaurant meals stop being reimbursable. Track your baseline costs Because ALE only pays the gap between your normal costs and your displacement costs, knowing what you usually spend on groceries, utilities, and commuting makes the reimbursement math fast and keeps more of your claim from being questioned. What are the limits on ALE coverage? ALE comes with two limits — a dollar cap and a time cap. The dollar cap is usually set as a percentage of your dwelling or personal property coverage, depending on your policy type. Policy typeALE limitHO-2, HO-3, HO-5 (homeowners)30% of dwelling coverageHO-8 (homeowners)10% of dwelling coverageHO-4 (renters)30% of personal property coverageHO-6 (condo)50% of personal property coverage Powered by: These are general guidelines, and insurers may offer more or less. The time cap is often called the period of restoration, and it varies by insurer. Carole Walker, executive director of the Rocky Mountain Insurance Information Association, says policies typically cover 12 months of additional living expenses, with some insurers offering up to 24 months or letting you buy extra coverage for a longer stretch. How do you file an ALE claim? Filing an ALE claim comes down to two things — acting fast and documenting everything. Reach out to your insurer the moment your home becomes uninhabitable, and confirm the loss is covered before you start spending. Call your insurer right away. Report that your home is unlivable, confirm coverage, and ask what documentation they need before you incur expenses. Save every receipt. Hotels, meals, laundry, transportation, and any other displacement-related cost should be documented. Know your normal spending. Since ALE covers only the amount above your usual costs, a baseline makes the calculation straightforward. Submit everything together. Include receipts, an expense log, and any forms your insurer requires. Stay in touch with your adjuster. Quick responses to requests help avoid delays. Review the settlement. If an expense is denied, ask why and provide more documentation if you have it. A public adjuster works for you Altieri also suggests hiring a public adjuster, who helps you prepare, file, and negotiate your claim. Unlike the insurer’s own adjusters — who may be juggling hundreds of files at once — a public adjuster gives you personal, one-on-one help through the process. Frequently asked questions Does ALE coverage cover hotel stays? Yes. ALE covers hotel stays while your home is being repaired, though your policy caps both how long and how much it will pay. Is additional living expenses coverage the same as loss of use? Yes. “Loss-of-use coverage” is just another name for additional living expenses coverage. Both refer to the coverage that keeps you whole while you can’t live in your home. Can my insurer reimburse a friend or relative using my ALE coverage? No, unless that person is a member of your household, like a spouse or child. ALE is part of your homeowners policy and protects the insured home and its occupants, not friends or more distant relatives. How long does ALE coverage last? It depends on your insurer, but policies commonly cover about 12 months of additional living expenses, and some extend to 24 months or let you buy more, according to the Rocky Mountain Insurance Information Association. Does ALE cover the full cost of eating out? No. ALE reimburses only the amount above what you normally spend. If your usual grocery bill is $400 and you spend $700 eating out, it covers the $300 difference. Alisha Ambre . .Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game. In case you missed it What is HO-6 condo insurance and how much does it cost? Average homeowners insurance cost by ZIP code in 2026 What is dwelling coverage and how much do you need? 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