Additional Living Expense Coverage: 6 Real-World Examples

This guide is part of our series on ALE coverage and tenant insurance. 

Additional living expenses (ALE) coverage is the part of a tenant insurance policy which helps you afford the added cost of living somewhere else temporarily, when a rented unit becomes unsafe or unusable following a covered event. What qualifies can vary depending on how a person's daily routine is affected.

Here are some common examples claims that normally fall into this category: 

1. Temporary Housing

This tends to be the most immediate and highest cost tied to an ALE claim. When a unit can't reasonably be lived in, a hotel room, a short-term rental, or an extended-stay arrangement often becomes necessary until your home is restored. These kinds of expenses can range into the thousands if you’re unable to return home for multiple months. 

2. Storage Costs

When a unit needs repairs or restoration done, your belongings often need to be moved out of the space entirely, whether that's due to the extent of the damage or to make room for contractors. It could be that your temporary accommodation isn’t large enough to house your personal items, making a storage unit a necessity. ALE coverage can help you afford storage locker fees, which can again quickly grow over weeks and months. 

3. Pet Boarding

Pet boarding isn't always an obvious expense, but hotels sometimes prohibit animals. Boarding costs, or other arrangements made to care for a pet while a unit is unlivable, are often covered by ALE, since they're a direct result of the displacement rather than an unrelated expense.

4. Extra Gas for Commuting

It’s not always possible to find temporary housing near where you work. That could mean an extra bit of driving every day as part of your regular commute to work. It might not feel like much, but an extra hour or so in the car every day can add up when it comes to a gas bill. This is another area where ALE coverage can help. While the full bill typically wouldn't be covered, the additional mileage costs could be eligible as part of an ALE claim.

5. Meals Above Your Normal Budget

Without access to a usual kitchen, eating out or relying on prepared food tends to become more common during a displacement. That means a lot more meals out. Even if you pick cheaper places, and try to budget, it’s only natural that it will likely be more expensive than regular home-cooked meals. Again, ALE coverage can kick-in to help you mitigate these costs. 

6. Laundry and Other Incidentals

Smaller, everyday costs can also come up during this kind of situation – laundry service where a washer and dryer aren't otherwise available, for instance, or other minor expenses connected to maintaining a normal routine away from home. Individually, these tend to be modest, but they're often grouped together as part of the broader picture of what a displacement can involve.

The information provided on this page is intended for general educational purposes only and does not constitute insurance advice, a recommendation, or an offer to sell insurance. Every individual's insurance needs are unique and depend on personal circumstances. We encourage you to consult with an independent licensed insurance broker in your province who can assess your specific situation and recommend appropriate coverage.