Guide to Additional Living Expenses (ALE) Insurance and Temporary Housing

If your home has become temporarily unlivable, whether due to fire, hurricane, or something else, finding a place to stay in the meantime is one of your top priorities. However, staying in temporary housing can stretch your budget with extra costs like rent, moving and storing furniture, and eating at restaurants rather than using your home kitchen.

The good news is if you have homeowners insurance, you may have coverage for temporary housing and additional living expenses (ALE) to offset these costs. This guide will explain everything you need to know about temporary housing and ALE insurance.

What Is Additional Living Expenses Coverage on Homeowners Insurance?

Homeowners insurance policies often include coverage for additional living expenses. Some policies call this loss-of-use coverage because you can claim it when you lose the ability to use your home.

What Is ALE Insurance?

ALE insurance covers any reasonable expenses beyond your normal living expenses that you have to pay when you are unable to live in your home after a covered event like a natural disaster. This excludes costs you would have had while staying at home, like your mortgage payments or regular grocery bills. Instead, ALE insurance covers the difference between your new living costs in temporary housing and your regular living costs at home.

For example, if you have to eat out for a month and this costs you a total of $1,700 compared to a $500 monthly grocery bill, ALE may cover up to $1,200 for additional food costs. Depending on your policy, ALE coverage may have a time limit or a total dollar limit.

What Does ALE Insurance Cover?

ALE coverage may pay for your increased cost of living resulting from additional expenses like:

• Hotel bills or rent for other temporary accommodation.
• Reasonable restaurant costs beyond your normal grocery bill amounts.
• Laundry service costs if you lack facilities to wash your own clothes.
• Transportation and storage fees for your furniture and possessions.
• Pet boarding.
• Increased utility costs.
• Essential furnishings for your temporary accommodation.
• Extra mileage if the temporary move extends your commute.

What Are the Limits on ALE Coverage?

Each homeowners insurance policy has its own limits on ALE coverage. These are distinct from the coverage for rebuilding, repairing, or replacing your home and belongings. Under some policies, the limit may be a maximum dollar amount. Others will set a time limit on ALE claims. Check with your insurer to understand your policy’s limits.

Does Homeowners Insurance Cover Temporary Housing?

While your home is unavailable, the most important expense is your temporary housing, and the ALE component of homeowners insurance includes coverage for this.

What Is Temporary Housing?

Temporary housing is any place you reside while away from your home because of a covered event under your homeowners insurance policy. Temporary housing coverage is a standard part of ALE coverage.

What Does Temporary Housing Coverage Include?

You can claim temporary housing coverage if your home must undergo repairs after a covered disaster like a fire or hurricane. Some policies also let you claim it if you had to evacuate because of potential damage from a covered peril, like a hurricane approaching your area, even if the damage never occurred. In that case, you can only claim temporary housing until the peril passes and you are able to return home. Temporary housing includes the cost of any accommodation you use for the covered period away from home, like a hotel, apartment, or other temporary residence.

Will Homeowners Insurance Cover a Hotel Stay?

Yes, homeowners insurance ALE coverage can cover your hotel bills if you choose a hotel room as your temporary accommodation. Most policies will cover a hotel that allows you a similar level of comfort to your home. Check the dollar or time limits with your insurer.

Does Renters Insurance Cover Temporary Housing?

Yes, renters insurance usually covers ALE, including temporary housing, but the amount of coverage will be different than if you owned the property. This is because insurers calculate homeowners insurance policy benefits based on the home’s value but use other criteria to set your ALE cap when you are renting. Contact your insurer to confirm that your renters insurance covers ALE and what your limits are for temporary housing.

Does Flood Insurance Cover Temporary Housing?

Most flood insurance policies will not cover temporary housing and additional living expenses. If you only have flood insurance, consider taking out homeowners or renters insurance for ALE coverage in the event of a flood forcing you to find temporary accommodation.

How Can You Find Temporary Housing in Atlanta, Georgia?

If you need to find temporary housing after a covered disaster under your homeowner’s insurance policy, follow these steps:

1. Report the damage: Besides getting yourself out of danger, your first step when a disaster makes your home unlivable is to call your insurance company to report the damage. If you take too long to report the incident, you will lose your right to claim. Your insurer will request details like your policy number and a description of the damage, so prepare this information quickly before filing your claim.
2. Secure your property: After capturing evidence of the damage, do what you can to prevent or limit further harm to your property. This may involve boarding up holes, setting up a security perimeter to keep intruders out, or other measures depending on what happened. To get the most from your coverage, you must show your insurer that you made an effort to mitigate the damage insofar as it was possible under the circumstances.
3. Consider professional help: Some insurers may try persuading you to accept less money than you could or should. Consider hiring a public adjuster or other independent insurance expert to help you get the amount of coverage you deserve.
4. Search for a rentable living space: If you have made a valid claim, your insurer will pay for the difference between your normal cost of living and the cost of staying in temporary housing. Search for a temporary residence in your area where you can feel as comfortable as possible while your home undergoes repairs. Several neighborhoods in Atlanta have luxury rental spaces eligible for temporary housing, which you could rent for a few weeks or several months.

Find Temporary Housing In Atlanta

Find Comfortable Temporary Housing With Atlanta Luxury Rentals

If you are looking for temporary housing after a disaster, you deserve a comfortable space to live until your home is ready for you to return. Atlanta Luxury Rentals offers luxurious short- and long-term accommodations in Atlanta’s most desirable neighborhoods so you can experience peace and comfort. Our rentals are fully furnished, pet-friendly, include a washer and dryer, and have other amenities to provide you with a high quality of life during an otherwise turbulent time. And because responsibilities continue even under unusual circumstances, our rentals are equipped for work-from-home routines with high-speed internet to protect your productivity.

Browse our rentals today to find the perfect luxury temporary housing solution for you.