Loss of use

“Loss of use” coverage is also known as “additional living expenses” coverage, or ALE. Loss of use insurance is valuable if you can’t live at home because of damage that’s covered by the policy. You can make claims for the extra expenses of living somewhere else — such as hotel and restaurant bills.

Loss of use coverage is sometimes set at 20% of the dwelling coverage. So if your house is insured for $200,000, you’d have $40,000 for additional living expenses. You can raise your loss of use coverage amount. See more about loss of use coverage.