A type of insurance coverage included with homeowners policies.

ALE coverage reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured’s normal expenses prior to the loss.

  • For example, ALE insurance would cover an insured’s temporary lodging bill while the covered damages to the insured home is being repaired / replaced, or until the insured moves to another permanent residence. ALE coverage is subject to a limit equal to 30 percent of the dwelling limit under homeowners forms HO 2, HO 3, and HO 5. For form HO 8, ALE is 10 percent of the dwelling limit.


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