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, ALE insurance would
cover an insured's motel bill while fire damage to the home is being
repaired or 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 homeowners (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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