Additional Living Expense Insurance

Also referred to as ALE, this is usually included in homeowner's insurance or renter's insurance policies. It covers costs by the insured if they are temporarily displaced from their normal place of residence if a there is a flood, fire, earthquake, or zombie invasion.

Hurricane Harvey sent thousands packing and fleeing parts of Texas in 2017. Depending upon the damage caused to the policyholder's homes, the costs of having to stay in temporary housing, ie. hotels, were covered by insurance. ALE can also cover eating at restaurants, sending your laundry out, pet boarding, moving costs, and loss of rental income if you rented out your home or part of your home. Keep in mind that Harvey victims couldn't just flee to the Four Seasons in Maui and bill the insurance for their move, the room, and food and laundry, since ALE coverage is usually only worth between ten and twenty percent of the value of your dwelling.