Every homeowners insurance policy includes additional living expenses coverage. 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 help you learn more about ALE insurance:
Additional living expenses covered by your home insurance generally include:
Unfortunately, your ALE insurance 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 policy.
Your insurance company may offer options for different amounts of coverage for additional living expenses. By default, this benefit is about 10% to 20% of the amount covered by your dwelling coverage.
For example, if your home is damaged and your dwelling coverage is $400,000, your ALE policy would provide around $40,000 to $80,000 of coverage for your additional living expenses.
For any questions about coverage amounts and details of your additional living expense coverage, check with your insurance company for more information. The more you know about your coverage, the better prepared you’ll be if you ever need to make a claim.
Judy Gibbons is a highly accomplished Realtor licensed in Illinois, Michigan, and Florida. With an impressive list of accolades and a wealth of experience, she has become a prominent figure in the Chicagoland real estate industry.
Judy Gibbons Group has expanded to include Realtors Muge Parmaksiz, Nico Gilbert and Peter Gibbons. Together they have over 50 years of experience in the United States and the United Kingdom.
Designations/Licenses: Certified Distressed Property Expert, Broker, GREEN
Town Coverage: Chicago, Illinois, Arlington Heights, Illinois, Barrington, Illinois, North Barrington, Illinois