Additional Living Expense (ALE) is the temporary allowance for reasonable costs while a home is unusable due to a covered loss.
Typical ALE expenses include temporary rent, lodging, meals, and storage for displaced belongings.
Insurance mechanics
- ALE runs from the loss date through rebuild or equivalent recovery, subject to policy limits.
- Claimants must show reasonable costs and document duration.
- Insurers may cap or suspend ALE when the insured fails to make timely repairs or choose excessive alternatives.
Underwriting and reserve effects
Home insurers include expected ALE exposure in catastrophe and average recovery time assumptions, which affects pricing and claims reserves.
Practical scenario
After a fire, a household moves into temporary housing for six weeks. ALE pays hotel and food support while construction permits and contractor scheduling determine final reinstatement.