Loss of use (ALE)
Coverage that helps pay extra living costs when a covered loss makes your home uninhabitable.
Plain definition
Loss of use coverage—often called additional living expense (ALE) on homeowners policies—pays the increase in living costs when a covered peril forces you out of your home, subject to limits and time caps. It may cover hotel bills, temporary rent, and extra food costs above your normal spending.
Why it matters
Major fire or wind losses can displace families for months. Without adequate loss of use limits, hotel and rent costs come from savings.
Example
Kitchen fire makes the house unlivable. ALE pays the hotel and restaurant difference over normal housing and food costs while repairs proceed, up to the policy limit.
Common misunderstanding
ALE responds to covered perils only—flood excluded on standard homeowners still means no ALE for flood displacement unless you have flood coverage that includes it.
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