BHHS Verani North Andover

Understanding additional living expenses

by Marianne Avila 06/05/2022

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

Marianne Avila

Welcome to Marianne Avila and her team at the Real Estate Integrity Group of Berkshire Hathaway Verani. Named Achiever of the Year New England 2021 and Platinum Top Producer is what sets her apart from the rest. We put over 25 years of experience to work for you to make your dreams a reality. Integrity is in our title because we are committed to providing expertise, counsel and advice to the highest degree with honesty, manage negotiations fairly, and provide creative Win/Win solutions. No compromises, no mistakes. We believe that a higher standard for the real estate industry has been set based on this belief system. Marianne has embraced the Team concept and taken it to the next level with a multi-person real estate team. Expect prompt and consistent communication, confirmed appointments, professional standards and a Team of specialists to support the transaction from start to finish and provide creative Win/Win solutions.