The National Association of Insurance Commissioners published consumer guidance explaining how additional living expenses (ALE) coverage in many homeowners policies can help pay for temporary costs when a covered disaster makes a home unlivable. ALE is intended to cover expenses above a policyholder’s normal living costs and generally reimburses only the difference between prior expenses and new temporary expenses, rather than all living expenses. It may cover items such as hotel or rental costs and reasonable restaurant meals when a temporary living situation lacks cooking facilities, and it typically requires keeping receipts for reimbursement. The NAIC noted that policies may impose dollar and/or time limits on ALE, which are separate from coverage used to repair or rebuild the home and replace belongings, and advised policyholders to confirm applicable limits with their agent, insurer, or adjuster and to contact their state department of insurance for claims or coverage assistance.
National Association Of Insurance Commissioners 2025-01-13
National Association of Insurance Commissioners explains additional living expense coverage and limits in homeowners insurance
The National Association of Insurance Commissioners issued guidance on additional living expenses (ALE) coverage in homeowners policies, highlighting its role in covering temporary costs when a home becomes unlivable due to a covered disaster. ALE reimburses the difference between normal and temporary living expenses, such as hotel or rental costs and meals, and may have dollar or time limits. Policyholders should verify these limits with their insurer and seek assistance from their state department of insurance if needed.