Understanding your insurance: Additional living expenses

by Renee Marie Jordan 08/14/2022

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
Author

Renee Marie Jordan

Renee Marie Jordan is a Third Generation Realtor®, who started out her career in residential lending. Jordan Real Estate was established by her grandmother, Jean Kotwitz, who was one of the first female real estate brokers in Solano County! The company was then passed down to her mother, Diane Jordan, over 40 years ago. Renee Marie then took over the company 24 years ago and in 2015 joined forces with RE/MAX Gold.   

Regarded as one of Northern California’s most dependable brokers, Renee Marie has gained industry respect for creating a successful brokerage company. Renee Marie’s unique blend of negotiating expertise, innovative thinking and belief that the client always comes first, has resulted in an extensive client base with many satisfied homeowners. Renee Marie specializes in residential sales, first time buyers, short sale properties, luxury properties, investment properties, foreclosures, 1031 exchanges, and has been the HUD specialist for Solano County since 2009.   

Renee Marie gets to the heart of her clients wants and needs. She attributes a great deal of her success to the many referrals she receives from clients who appreciate the care and thoughtfulness she puts into every transaction. Friends and family members can count on the same excellent service when they are referred to Renee Marie.