How Renters Insurance Covers Temporary Living Expenses After a Disaster

Renters insurance is coverage intended to help financially protect tenants and their belongings from unexpected losses or liability. But you may not be familiar with one very crucial aspect of a renters insurance policy: additional living expenses (ALE) coverage.

When Does ALE Apply?

ALE coverage can reimburse you for costs you incur because you cannot live in your rental temporarily after a covered event. This may include fires, storm damage or vandalism. Make sure to review your policy so you know what events are covered.

What Does ALE Include?

ALE is designed to assist with living expenses when you can’t live in your rental, just as the name suggests. ALE commonly includes the following:

• Hotel or temporary rental costs—ALE may reimburse you wholly or in part for the time you spend in a hotel or other temporary housing while your home is uninhabitable, as outlined in your policy.

• Food expenses—This can include restaurant bills or dining out.

• Laundry and storage fees—This can help if you lose access to in-unit amenities or need to store your belongings temporarily.

• Pet boarding—This can help if your temporary housing doesn’t accommodate pets.

Your policy documents can provide more detail about which expenses may be included under your specific coverage.

Additional Guidance

While ALE can be extremely helpful after a disaster, it usually has a cap for how much your insurer will contribute. It’s always a good measure to keep all receipts for purchases when you’re unable to live in your rental property, such as hotel bills, restaurant bills, and other expenses.

Always check your policy or speak to your insurance broker to better understand your policy and what would be covered. It’s also helpful to know exactly what perils or events are covered under your policy to know when ALE might kick in.

Contact Us

The team at Vela Auto Insurance in Houston, TX can help you find a renters policy that fits your needs and budget. Contact us today for a personalized quote or more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.