phrase · also: ALE, loss of use, Coverage D
additional living expense
In plain English
Covers the extra cost of living somewhere else while your home is being repaired after a covered loss.
Hotel, rental house, restaurant meals beyond what you normally spend, pet boarding — all the costs of NOT being in your house. Usually capped at 20-30% of dwelling coverage on most homeowners policies.
What it covers
Increased costs of living incurred to maintain your normal standard of living while displaced — temporary rental, hotels, restaurant meal differential, pet boarding, storage, transportation.
What it does not cover
It is NOT a windfall. The carrier covers the increased portion only — if your normal grocery bill is $800/month, they cover the restaurant differential, not the full restaurant tab.
Where it trips people up
Time limits matter. Some policies cap ALE at 12 months; some at 24. After a major loss with a long rebuild, that ceiling becomes very real.
The technical version
Coverage under a homeowners policy for the necessary increase in living expenses incurred by the insured to maintain the normal standard of living, when the residence becomes uninhabitable due to a covered loss.