Every homeowners insurance policy includes additional living expenses coverage. 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 help you learn more about ALE insurance:
What does ALE coverage include?
Additional living expenses covered by your home insurance generally include:
- Restaurant and food costs exceeding normal grocery bills.
- Temporary lodging including hotels, motels and rentals.
- Fuel and transportation costs for an increased commute.
- Pet boarding if your temporary lodging doesn’t allow them.
- Furniture rental if your temporary lodging is unfurnished.
- Laundry services.
- Storage fees for your personal belongings.
What isn’t covered?
Unfortunately, your ALE insurance 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 policy.
How much ALE coverage do I need?
Your insurance company may offer options for different amounts of coverage for additional living expenses. By default, this benefit is about 10% to 20% of the amount covered by your dwelling coverage.
For example, if your home is damaged and your dwelling coverage is $400,000, your ALE policy would provide around $40,000 to $80,000 of coverage for your additional living expenses.
For any questions about coverage amounts and details of your additional living expense coverage, check with your insurance company for more information. The more you know about your coverage, the better prepared you’ll be if you ever need to make a claim.
About the Author
Ryan Mandigo
Ryan Mandigo is an award-winning professional broker associate with Omni Real Estate. Originally a native of New Hampshire, his love of real estate began 30+ years ago while swinging a hammer on a framing crew. He has always had a strong passion for helping people, whether it be assisting a couple in purchasing their first home, finding a home that fits a growing family's needs, or downsizing for those with an empty nest. He strives to build strong personal and professional relationships with being a true believer in the power of positive thinking and always willing to lend a helping hand.
He is also a co-founder and board member of the Swing Fore the Kids organization. A local charity that is 100% nonprofit and their sole purpose is to help needy children and young adults within Horry County communities. He finds great satisfaction and pleasure in seeing how working hard for a great cause and raising funds can help others in need. He is also on the Board of Directors for the Waccamaw Youth Center in Conway, where their mission is to provide at-risk youth "A Place To Call Home"
When he is not working, he enjoys music, working around the home, spending time with family and friends, turning wrenches on vintage vehicles, getting some wind therapy on the Harley or chilling with their dogs.
Some quotes he lives by - "Do what you like and like what you do" - "You have to be odd to be number one" - "Dreams don't work unless you do" And one of his favorites. "Positive and enthusiastic thinking in all you do"
