Every homeowners insurance policy includes additional living expenses coverage. If you’re temporarily displaced from your home because of damage, this coverage can help you pay for the additional everyday expenses until you’re able to move back in. But what exactly does additional living expense (ALE) coverage include?
Here is a basic guide to help you learn more about ALE insurance:
Additional living expenses covered by your home insurance generally include:
Unfortunately, your ALE insurance won’t cover everything. It’s important to remember that this portion of your insurance policy will not pay for damage to your home or belongings. However, these costs are covered by the dwelling portion of your homeowners insurance policy.
Your insurance company may offer options for different amounts of coverage for additional living expenses. By default, this benefit is about 10% to 20% of the amount covered by your dwelling coverage.
For example, if your home is damaged and your dwelling coverage is $400,000, your ALE policy would provide around $40,000 to $80,000 of coverage for your additional living expenses.
For any questions about coverage amounts and details of your additional living expense coverage, check with your insurance company for more information. The more you know about your coverage, the better prepared you’ll be if you ever need to make a claim.
Jessica is a dedicated real estate agent who puts her clients' needs first. She strives to exceed their expectations and provides them with true dedication, integrity, and professionalism. She understands that buying or selling a property is a big decision and a significant investment. Jessica has extensive knowledge of the real estate market in New Hampshire and Massachusetts, and she is committed to serving her clients' needs. Whether you are looking for your first home, a vacation home on the lake, or an investment property, Jessica can provide you with all the necessary information about locations, property types, and value. She thoroughly enjoys her work and is passionate about helping her clients buy or sell properties in New Hampshire and Massachusetts. If you're looking for a reliable and knowledgeable real estate agent, Jessica is the right choice for you.