Additional Living Expense: More Than Just Rent After a loss, most policies have coverage that provides additional living expenses to the insured. Additional living expenses (ALE) is the coverage under a homeowner’s, condominium owner’s, or renter’s insurance policy that covers the additional costs of living that the policyholder incurs if the loss temporarily displaces the insured from their place of residence.
There are two important caveats here. First, it is the ADDITIONAL amount an insured spends to maintain the normal standard of living. Second, the loss must actually be INCURRED. The additional amount means the insurance company does not pay for your normal standard of living and also the additional amount you are spending. So, if you normally spend $500 a month on eating out and with your loss you are now spending $600, the insurance company only owes $100. This is because you would have spent the $500, regardless of whether you