Additional Living Expense Insurance
What Does Additional Living Expense Insurance Mean?
Additional living expense (ALE) insurance is a policy that covers extra costs the policyholder incurs if they are temporarily displaced from their permanent residence due to events such as fire, flood, or other disasters that make the home uninhabitable. This coverage helps pay for temporary housing, meals, and other necessary expenses while the home is being repaired or rebuilt.
Insuranceopedia Explains Additional Living Expense Insurance
Additional living expenses (ALE) insurance protects against the financial burden of extra costs the policyholder would incur when temporarily displaced from their home. This coverage may include expenses such as hotel fees, food bills, and other related costs, as well as potential loss of income. ALE insurance is often included as part of homeowner’s or renter’s insurance policies.
