What is a loss of use coverage?
By Bob Millaway, South Jersey Community Expert & REALTOR®
Loss of use coverage, also called additional living expenses (ALE), pays for your temporary housing and extra living costs if your home is uninhabitable due to a covered loss. This includes hotel stays, restaurant meals, laundry services, and storage fees. Coverage is typically limited to a percentage of your dwelling coverage, often 20 to 30 percent. It does not cover your mortgage or regular living expenses you would have paid anyway. Keep all receipts during displacement.
Why It Matters
If a fire or storm forces you out of your home, loss of use coverage ensures you can maintain your normal standard of living while repairs are made.
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