WEDNESDAY, NOVEMBER 30, 2022
When you purchase home insurance, you gain significant financial protection that many homeowners hope they never have to use—additional living expenses (ALE) coverage. If a covered incident, such as a fire or hurricane, damages your home and forces you to live elsewhere, ALE coverage may help cover your expenses.
Goggans Insurance has provided affordable, customized home insurance policies with ALE coverage to Alabama homeowners since 1987, and we can help do the same for you.
What Is ALE Coverage?
ALE—or additional living expenses—coverage is a portion of your homeowners insurance policy that helps cover costs you may incur if you are displaced from your home after a covered loss. From items such as hotels or rentals, restaurants, pet boarding, laundry, mileage and storage costs, ALE protection enables homeowners to continue their daily lives while home repairs or rebuilds occur and they need to live elsewhere. 
In addition, most policies provide ALE coverage if you’re forced to evacuate (i.e., a mandatory evacuation order is issued) your home because of a hurricane, wildfire or another insured event—even if your home isn’t damaged.
The expenses of temporarily living somewhere else can quickly add up. Be sure to keep detailed records of expenses you incur to be able to file an accurate claim against your policy.
How Much ALE Protection Is Available?
Every home insurance policy has its coverage limits, including those for additional living expenses. It’s important to note that this coverage provides financial assistance for expenses that exceed your normal living expenses. Your insurance agent can review your policy and help clarify your policy’s ALE limits so you know the amount of protection you have if a covered incident forces you to live elsewhere for a while.
What Doesn’t ALE Protection Cover?
ALE protection is for your living expenses if you’re temporarily displaced from your home due to a covered peril. If your home and belongings are damaged, those expenses fall under your homeowners policy’s dwelling and personal property coverage. ALE coverage also isn’t triggered if you’re remodeling your home—voluntarily—and need to vacate your home while the renovation is underway.
Additionally, it’s important to note that ALE protection is only provided if you experience a covered loss under your policy. Unfortunately, flooding is generally not considered a covered loss under the typical home insurance policy. Consequently, your home insurance’s ALE coverage is unavailable if you’re forced to leave your home following a flood. Whether your flood insurance policy provides such coverage is dependent on your specific policy. For example, flood insurance purchased for your Alabama home from FEMA typically doesn’t provide ALE coverage, but private flood insurance policies may. Your insurance agent can provide more details on what ALE through your home policy is and isn’t included and explore additional insurance needs.
Essential Protection for Homeowners
Homeowners insurance is vital protection for any homeowner, especially if your home is damaged and you must live elsewhere for a while. Keep all your receipts for additional living expenses if you need to file a claim after insured damage; this will help the claims process go more smoothly. Talk with Goggans Insurance to ensure your home insurance policy has the right coverage for your needs.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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