Additional living expenses, or ALE, payments help homeowners pay for living expenses if a covered disaster makes their home uninhabitable.
ALE pays living expenses that are beyond the insured’s normal living expenses — or the difference between the insured’s previous living expenses and their new temporary expenses. ALE will usually pay for things like hotel bills, restaurant meals (if the hotel room doesn’t have a kitchen), pet boarding, short-term rentals and extra transportation expenses.
ALE won’t pay for costs that existed before the disaster, though, like the insured’s mortgage payment or regular commute costs. Insureds will need to keep receipts of all expenses and submit them to their insurer for approval.
ALE sometimes has a time limit or is capped at a certain dollar amount — this should be spelled out in the policy.
The slideshow above highlights four questions about ALE answered by the editors at FC&S Expert Coverage Interpretation.
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