What does Additional Living Expense (ALE) cover in homeowners policies?

• A. Mortgage payments.
• B. Medical expenses.
• C. Increased living expenses while the home is uninhabitable due to a covered loss.
• D. Lost rent.

Answer: (C)

Additional Living Expense coverage pays the extra costs you incur to maintain your usual standard of living when the home can’t be lived in because of a covered loss. It covers things like hotel or temporary housing, meals out, laundry, and other increased living costs, but only the amount above your normal expenses and up to the policy limit. It does not cover mortgage payments, medical expenses, or lost rental income. For example, after a covered fire you might stay in a hotel and eat out while repairs are made; ALE would reimburse the incremental costs of that temporary living situation.