Every homeowners insurance policy includes a percentage of coverage for additional living expenses. If you’re temporarily displaced from your home because of damage, this coverage can help you pay for the additional everyday expenses until you’re able to move back in. But what exactly does additional living expense (ALE) coverage include?
Here is a basic guide to the kinds of out-of-pocket expenses your ALE insurance can help you with:
If your home is severely damaged, your insurance company may deem it unsuitable for living in while repairs are being made. In this case, your additional living expense coverage can help defray the costs of a temporary living arrangement. Lodging expenses covered include hotel and motel stays and short-term rentals.
If you’re not living at home, you’ll likely need to rely on restaurants for a while. Unfortunately, this cost can add up quickly. Your additional living expense insurance can cover a reasonable amount of food costs exceeding your normal grocery bills.
Your insurance may help you with other expenses in addition to food and lodging. Some examples of common additional living expenses include:
While the list of expenses included in your ALE coverage is fairly expansive, it won’t cover everything. It’s important to remember that this portion of your insurance policy will not pay for damage to your home or belongings. However, these costs are covered by the dwelling portion of your homeowners insurance.
If you’re not certain, you can always check with your insurance company for more details about your additional living expenses coverage.
Buying or selling a home is one of the most important investment decisions you will ever make. I am always honored and privileged when my clients put their trust in my knowledge and experience and invite me to join them in this personal journey.
My client base is quite diverse ranging from first time home buyers, relocation clients, new construction homes, to experienced buyers and sellers who are either moving into larger homes or downsizing their current residence. I also successfully assist and refer many of my clients who are relocating out of the area with leading realtors across the country.