Additional living expenses explained

How loss-of-use coverage helps if a covered loss forces you out of your rental.

If a fire, smoke event, or other covered loss makes your unit unlivable, additional living expenses (ALE) helps pay the extra cost of living elsewhere: a hotel or short-term rental, higher food costs, laundry, and added mileage.

ALE pays the difference above your normal costs, not your whole budget. If you keep paying rent you are not required to pay, that is usually not reimbursed.

Keep receipts and a simple log of extra expenses. Ask the adjuster early how long ALE is expected to run.

Some policies also respond when a civil authority orders an evacuation because of a covered peril nearby.

Coverage at a glance

Renters coverage parts
CoverageWhat it pays forTypical choice
Personal propertyFurniture, clothing, electronics, and other belongings after a covered loss, at home or awaySet to the replacement value of what you own
Personal liabilityInjury or property damage you cause to others, plus legal defense$100,000 minimum; $300,000+ common
Loss of useExtra hotel, meal, and living costs while your rental is unlivableOften a percentage of the property limit
Medical payments to othersA guest's minor medical bills, regardless of faultTypically a few thousand dollars

Commonly covered causes of loss

  • Fire and smoke
  • Lightning
  • Windstorm and hail
  • Explosion
  • Theft
  • Vandalism
  • Sudden water discharge from plumbing or appliances
  • Freezing of plumbing
  • Weight of ice and snow
  • Falling objects
  • Damage by vehicles
  • Riot or civil commotion

Commonly not covered

  • Flood and rising surface water
  • Earthquake and earth movement
  • Bedbugs, rodents, and insects
  • Wear, tear, and gradual leaks
  • The building itself (your landlord's policy)
  • Your car (an auto policy)

More guides

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