You May Be Covered for Extra Living Costs
Additional living costs (ALE) coverage is typically included in homeowner and renter insurance plans.
If you are unable to live at home owing to damage from an insured incident that renders the house temporarily inhabitable, ALE will cover your additional living expenses.
What expenditures do ALE normally pay for?
ALE pays your living expenditures so that your household can continue to live at the standard of living you are accustomed to.
These costs may consist of:
Restaurant or grocery bills
Transportation (e.g., if your temporary house demands a lengthier commute) (e.g., if your temporary home requires a longer commute)
The ALE coverage provided by your home’s insurance is often equal to 20 percent of the insured value of your house—so a home insured for $200,000 might have ALE coverage of up to $40,000—or is time-limited (e.g., no more than 12 months).
What about Hurricane Ida’s damage?
If a covered peril (such as wind and rain) results in damage that renders a home uninhabitable, standard ALE coverage should be triggered.
Additionally, some businesses offer ALE protection when policyholders leave their houses or flat as a result of orders to evacuate.
To determine whether their policy includes ALE coverage for their circumstance, policyholders can consult with their insurance professional.
To remind you, flood damage is often not covered by regular homeowners insurance plans.
The National Flood Insurance Program (NFIP) does not cover ALE, just actual flood damage.
Some flood insurance policies offered privately offer ALE after flood damages.
What Other Assistance Is There?
The Federal Emergency Management Agency has made federal help available (FEMA).
On September 2, FEMA said they will pay for hotel costs for Hurricane Ida survivors in southeast Louisiana’s 25 parishes with damaged houses or dwellings.