What Is Additional Living Expense (ALE) / Loss of Use?
ALE (often listed as Coverage D or “Loss of Use”) helps pay the extra costs you incur because your home is uninhabitable or partially unusable due to a covered loss (like a sudden water damage event). The goal is to maintain your normal standard of living while repairs are made.
ALE Pays For “Increased Costs”
Think: hotel/lodging, short-term rental, pet boarding, laundry, storage, increased commuting, parking, meals over your normal grocery budget, utilities at the temporary home, and move-in/out fees attributed to the loss.
Proof Wins Reimbursement
Every ALE claim hinges on clear documentation: dates, receipts, who/what/why, and how it exceeds your normal expenses. The insurer compares “actual” vs. your “customary” baseline.
Limits & Duration
ALE is usually capped by a dollar limit and/or time limit per your policy. Keep your receipts organized and submit in batches to avoid delays.
Accepted Examples of ALE (Show Your Proof)
| Expense Category | What Counts | Proof You Provide | Notes |
|---|---|---|---|
| Lodging | Hotel or short-term rental when areas are uninhabitable | Folio/receipts, date range, reason (e.g., “No functional bedrooms due to mitigation”) | Request itemized folios; sales/occupancy taxes are part of cost. |
| Meals | Restaurant/meal costs that exceed your normal grocery spend | Receipts + a simple baseline (e.g., “Avg. family grocery: $150/wk; meal total: $240/wk → extra $90”) | Only the overage is reimbursable. Keep it conservative and consistent. |
| Laundry | Laundromat, wash-and-fold, dry cleaning due to loss | Receipts + note why (e.g., “Washer in wet area powered off during drying”) | Mark claim number on receipts. |
| Transportation | Increased mileage/parking to school/work/childcare from temp housing | Mileage log (dates, from/to, miles), parking receipts | Reimbursable portion is mileage over normal. Use a simple “before vs. after” log. |
| Pet Boarding | Boarding when home is unsafe/noisy due to demo/drying | Invoices + dates aligned to mitigation schedule | Vet note helpful if noise/stress is a factor. |
| Storage | Off-site storage for contents during mitigation/repairs | Rental receipts, pickup/delivery fees | Label boxes by room → helps your contents claim too. |
| Utilities (Temp Housing) | Power, water, internet at temp home | Bills + compare against “normal” bill at primary residence | Only the increase is typically reimbursed. |
| Pay the Water Damage Restoration Company (Mitigation Invoice) | Payment to your emergency mitigation contractor for work already completed | Contractor invoice + proof of payment (receipt/cleared check) + mitigation documentation packet | Important: Usually reimbursed under dwelling/structure coverage (not ALE). Pay your contractor, then submit for reimbursement under the Loss Payment Provision. |
How to Pay Your Contractor (3 Simple Steps)
Pay your water damage restoration contractor upon completion of mitigation services. This closes your contract with the provider and keeps the project moving without lien risk.
- Keep the final invoice and receipt/cleared check.
- Ask for the documentation packet (photos, dry logs, psychrometrics, moisture maps).
Send your insurer a short cover note with the following attached:
- Signed Proof of Loss (if requested)
- Mitigation invoice + proof of payment
- Full documentation packet from your contractor
Reference your policy’s Loss Payment Provision and your claim number in the subject line.
Your carrier should release covered funds under the dwelling coverage for completed mitigation work.
- Track the check status; follow up in 5–10 business days.
- Repairs are billed separately as estimates → invoices when completed.
This 3-step sequence shuts down the “that’s just an estimate” game and accelerates reimbursement.
ALE Quick Worksheet (Copy/Paste)
| Category | Normal Cost | Actual Cost | Reimbursable Overage |
|---|---|---|---|
| Lodging (per night) | $0 | $138.00 | $138.00 |
| Meals (per week) | $150.00 | $240.00 | $90.00 |
| Laundry (per week) | $0 | $24.50 | $24.50 |
| Mileage (per week) | 80 miles | 140 miles | 60 miles × IRS rate or policy rate |
| Pet Boarding (per week) | $0 | $110.00 | $110.00 |
| Storage (per month) | $0 | $95.00 | $95.00 |
| Temp Utilities (per month) | $0 | $120.00 | $120.00 |
Tip: If your policy uses a special rate for mileage or caps per-diem for meals, apply those numbers. If not specified, some carriers accept the IRS mileage rate as a reference—but always check your policy language.
Sample ALE Cover Letter (You Can Use This)
Subject: Claim #________ — Request for Additional Living Expense Reimbursement
Dear [Adjuster Name],
Enclosed please find my ALE reimbursement request associated with the covered water loss dated [date]. Per my policy’s Loss of Use / Coverage D, I am submitting proof of the increased costs incurred while my home was uninhabitable/partially unusable during mitigation and repairs.
Enclosures:
- Hotel folios for [dates]
- Meal receipts + weekly baseline comparison
- Laundry receipts (washer inaccessible)
- Mileage log + parking receipts (temp commute)
- Pet boarding invoices
- Storage unit rental receipts
- Utility bills (temporary housing) vs. normal baseline
For your convenience, I’ve included the ALE worksheet summarizing the reimbursable overage by category. Please confirm receipt and advise if anything further is needed to release payment under the policy’s Loss Payment Provision.
Thank you,
[Your Name] | [Phone] | [Address]
Where to Find ALE in Your Policy
- Look under Coverage D: Loss of Use (often in HO-3 style policies).
- Find the Loss Payment Provision (describes when the insurer must release funds after proof is submitted).
- Check for limits and time frames (e.g., max months or total dollars).
Need help reading your policy? Call us and we’ll point you to the right pages and help you assemble a complete, defensible packet.
Next: Master the Claim Process
Follow the day-by-day path from emergency mitigation to final payment. Avoid the hidden traps that delay checks.
Spot Adjuster Tactics
Know how down-scoping, depreciation abuse, and “estimate” mislabeling work—and how to shut them down with evidence.
Use Our Documentation Library
Real-world (redacted) moisture maps, dry logs, and photo checklists that make carriers say “yes.”
Policy Glossary — Plain English
| Term | What It Means | How It Affects You |
|---|---|---|
| ALE / Loss of Use (Coverage D) | Pays the extra cost to maintain your household when the home is uninhabitable/limited by a covered loss. | Keep receipts + your normal baseline. Submit in batches to get checks released faster. |
| ACV (Actual Cash Value) | Replacement cost minus depreciation. | Often the first check is ACV; the rest comes after work is completed (RCV holdback). |
| RCV (Replacement Cost Value) | Cost to replace with new of like kind/quality (no depreciation). | Recoverable depreciation is paid after repairs are finished and documented. |
| Deductible | Your share deducted from a covered claim. | Applies once per loss; know the number so you’re not surprised at payment time. |
| Depreciation | Reduction for age/condition of items. | Recoverable if your policy is RCV (after completion); non-recoverable if ACV only. |
| Proof of Loss | Sworn statement summarizing claimed amounts (insurer may require it). | Submit on time if requested; include invoices, ALE proof, photos, and logs. |
| Loss Payment Provision | Policy clause stating when the insurer must pay after proof is received. | Use this in your cover letter to prompt timely checks. |