What does additional living expense cover?

The increase in living costs while the home is unlivable: temporary housing, the extra cost of eating out over normal groceries, extra mileage, laundry, storage and similar costs. It pays the difference, not the whole bill, so normal costs you no longer pay are subtracted.

Does my mortgage count against ALE?

No. A mortgage payment continues whether or not you live in the house, so it is not a saving to subtract. Enter zero as the normal housing cost when the mortgage continues; enter your normal rent if you stopped paying rent.

How much ALE coverage do I have?

Coverage D is set on the declarations page, often 20–30% of the dwelling limit (Coverage A). Some policies also cap ALE by time, such as 12 or 24 months.

Free tool · adjusters and policyholders

Additional Living Expense Calculator

The monthly increase over normal living costs, the total for the time out of the home, when Coverage D runs out, and what is still owed.

Monthly cost: temporary vs. normal

HousingTemporary rent or hotel vs. normal rent. Enter 0 normal if the mortgage continues.

Temporary$Normal$

FoodRestaurant and takeout vs. normal groceries.

Temporary$Normal$

Extra mileageAdded commute and school miles × IRS rate.

Temporary$Normal$

UtilitiesAt the temporary place vs. normal utility bills you stopped paying.

Temporary$Normal$

LaundryLaundromat when there was a washer at home.

Temporary$Normal$

Storage and movingStorage unit, moving truck, pet boarding.

Temporary$Normal$

Coverage A$Coverage D%Often 20–30% of A; check the declarations.Months outALE paid so far$

Monthly increase (ALE)

$4,430

Total for 8 months

$35,440

Coverage D limit

$70,000

Runs out after 15.8 months at this rate.

Still owed

$29,440

Total less what has been paid.

ALE summary for the adjuster

Additional living expense (Coverage D) — monthly increase over normal living costs

Housing              temporary    $3,200  normal        $0  increase    $3,200
Food                 temporary    $1,500  normal      $900  increase      $600
Extra mileage        temporary      $260  normal        $0  increase      $260
Utilities            temporary      $180  normal      $120  increase       $60
Laundry              temporary       $90  normal        $0  increase       $90
Storage and moving   temporary      $220  normal        $0  increase      $220

Monthly increase: $4,430
Months displaced (estimated): 8 → $35,440
Coverage D limit: $70,000 (20% of Coverage A $350,000)
Paid to date: $6,000
Requested: $29,440

Receipts for each category are attached. Please confirm in writing the categories you accept and the period you will cover.

Some policies limit ALE by time (for example 12 or 24 months) as well as by amount. Check the Coverage D wording.

Why ALE gets underpaid

Two reasons. Categories get left out (mileage, laundry and the food difference are the usual ones), and the displacement period gets set before the scope is known. A rebuild scoped at three months that actually takes eight leaves five months of ALE unclaimed unless someone asks for it.

Long displacements are where this matters most. After a declared state of emergency, California requires at least 24 months of ALE, with up to 12 more months when the insured meets good-faith delays (Ins. Code §2060). Los Angeles wildfire rebuilds regularly run that long. On the hurricane coast (Tampa, Fort Myers, Houston and New Orleans), contractor backlogs after a major storm push rebuilds past the period the first scope assumed.

Track the rest of the claim with the claim deadlines by state tool and the other free tools.

Questions

What does additional living expense cover?: The increase in living costs while the home is unlivable: temporary housing, the extra cost of eating out over normal groceries, extra mileage, laundry, storage and similar costs. It pays the difference, not the whole bill, so normal costs you no longer pay are subtracted.
Does my mortgage count against ALE?: No. A mortgage payment continues whether or not you live in the house, so it is not a saving to subtract. Enter zero as the normal housing cost when the mortgage continues; enter your normal rent if you stopped paying rent.
How much ALE coverage do I have?: Coverage D is set on the declarations page, often 20–30% of the dwelling limit (Coverage A). Some policies also cap ALE by time, such as 12 or 24 months.

Time out of the home depends on the rebuild.

A realistic repair scope sets a realistic ALE period. We write the full Xactimate® estimate, free for the first one.

All tools on this page are informational and not legal or insurance advice. More free tools