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:
Lodging
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.
Food
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.
Other expenses
Your insurance may help you with other expenses in addition to food and lodging. Some examples of common additional living expenses include:
- 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?
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.
About the Author
Rossy Figueroa
“Real estate” means so much more to me than simply buying or selling property...I believe it’s all about the people behind those transactions. A house would never be a home without them. That is why my first question to you will always be “what are your goals and how can I help you get there?”
Helping someone to plan and achieve their goals is just as important as listening to what they are. I know first-hand from over a decade of experience just how much it can take to make it happen. With honesty, diligence, and resilience, however, no hurdle is unconquerable. I can guide you through the entire process, always making you feel comfortable, informed, and in control. Like I said before, you are always the first priority.
I chose to partner with Berkshire Hathaway HomeServices Real Time Realty because, just like me, they realize that real estate agents are much more than salespeople. Every person and every goal is just as important as the last - and Berkshire Hathaway has all the tools and resources to get the job done.
It’s been an absolute privilege to meet some of you and help you achieve your goals. I can’t wait to meet the rest. Whether you’re looking to buy, sell, or both, I am confident that I am the last agent you’ll need. A better future awaits...give me a call and let’s get started!
