additional living expense (ALE) coverage
A type of insurance included within homeowners policies. ALE coverage reimburses
the insured for the cost of maintaining a comparable standard of living following
a covered loss that exceeds the insured's normal expenses prior to the loss.
For example, additional living expense insurance would cover an insured's motel
bill while fire damage to the home is being repaired, the home is replaced,
or until the insured moves to a permanent residence. ALE coverage is subject
to a limit equal to 30 percent of the dwelling limit under forms HO-2, HO-3,
and HO-5. For form HO-8, ALE is 10 percent of the dwelling limit. Under the
tenants policy (HO-4), ALE is 30 percent of the personal property limit, while
under the condominium unit owners policy (HO-6), the limit of ALE is 50 percent
of the personal property limit. See also
Fair rental value.
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