What Is Loss of Use Coverage?

If a fire, burst pipe or other covered incident forces you out of your home, the costs can pile up fast. Loss of use coverage, also called additional living expenses (ALE) coverage, is the part of your homeowners insurance policy that can help cover those extra costs while your home is being repaired.

What Does It Do?

Loss of use coverage can step in when a covered peril renders your home temporarily uninhabitable. Covered expenses can include:

• Hotel or rental costs during the repair period
• Higher meal costs, including dining at restaurants due to not having access to a kitchen
• Pet boarding if your temporary housing does not allow animals
• Laundry and dry-cleaning costs
• Short-term storage for your belongings
• Additional transportation costs, such as if you need to travel further to and from work

Coverage can apply up to your policy limits and typically continues until your home is restored to a livable condition, or until the coverage period defined in your policy ends.

Why Is It Essential for Homeowners?

A house fire or major storm can displace you and your loved ones for weeks or even months. During that time, temporary housing in your area may cost more than you expect. Homeowners may carry this coverage without realizing how valuable it is until they need it. Without loss of use coverage, expenses like food and temporary accommodations may come entirely out of pocket.

Get the Coverage Your Home Needs

Reviewing your policy now is the best way to make sure your coverage reflects your current lifestyle and needs. Contact T.L. Insurance today to review your policy and request a quote. We proudly serve homeowners in Logansport, IN and are happy to help them find the right policy at a competitive price.

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.