Homeowners insurance coverage that reimburses you for extra costs incurred when you cannot live in your home due to a covered loss. Also known as ALE or loss of use, it covers hotel bills, restaurant meals, and other temporary living costs above your normal expenses.
Related Terms
Dwelling Coverage
The part of a homeowners insurance policy that pays to repair or rebuild the physical structure of your home if it is damaged by a covered peril such as fire, wind, or hail. Dwelling coverage should equal your home's estimated rebuilding cost, not its market value.
Homeowners Insurance
A policy that bundles coverage for your home's structure, personal belongings, liability protection, and additional living expenses into one package. The most common form is the HO-3 policy, which covers the dwelling on an open-peril basis and personal property on a named-peril basis.
Loss of Use
A homeowners insurance benefit that pays for temporary housing and living expenses when your home is uninhabitable due to a covered loss. It is another name for additional living expenses (ALE) coverage and is typically capped at a percentage of your dwelling coverage or a set time period.