Home & renters
Your stuff, your liability, your rebuild cost
Additional living expenses (loss of use) calculator
If a covered loss makes your home unlivable, additional living expenses pay the extra cost of living elsewhere. Enter how long repairs might take and your monthly costs to see whether your limit would last.
Result
Showing the worked example. Change any number to see your own result.
$18,000Estimated ALE need
You would need about $18,000 of additional living expenses ($3,000 a month), but your limit is $15,000. You would be $3,000 short, and the limit would run out after about 5 months.
- Estimated ALE need
- $18,000
- Extra cost per month
- $3,000
- Shortfall
- $3,000
- Months the limit lasts
- 5
- Running total
- Your ALE limit: $15,000
View chart data as a table
| Month | Running total |
|---|---|
| 1 | $3,000 |
| 2 | $6,000 |
| 3 | $9,000 |
| 4 | $12,000 |
| 5 | $15,000 |
| 6 | $18,000 |
Month by month
| Month | Extra cost | Running total | Limit remaining |
|---|---|---|---|
| 1 | $3,000 | $3,000 | $12,000 |
| 2 | $3,000 | $6,000 | $9,000 |
| 3 | $3,000 | $9,000 | $6,000 |
| 4 | $3,000 | $12,000 | $3,000 |
| 5 | $3,000 | $15,000 | $0 |
| 6 | $3,000 | $18,000 | $0 |
How the result is built
| Temporary costs per month | $3,000 |
|---|---|
| Minus normal costs that stop | $0 |
| Extra cost per month | $3,000 |
| Months out of your home | 6 |
| Estimated ALE need | $18,000 |
| Your ALE limit | $15,000 |
| Shortfall | $3,000 |
Compare scenarios
Save up to 3 versions of your inputs and compare them side by side.
How to use this calculator
- Estimate how long you would be out. Use a realistic repair time for a serious fire or storm, often several months.
- Enter temporary costs. Add monthly rent or hotel, extra food, travel and other costs.
- Subtract costs that stop. Renters usually stop paying normal rent; owners usually keep paying the mortgage.
- Compare with your limit. Enter your Coverage D limit to see whether it would last.
What additional living expenses coverage pays
Additional living expenses (ALE), often called loss of use or Coverage D, pays the extra cost of living somewhere else while a covered loss, such as a fire, makes your home unlivable. The NAIC describes it as covering necessary extra costs to maintain your normal standard of living, up to the policy limit. The Texas Department of Insurance lists rent, food and other costs you would not have if you were still at home, and warns that repairs can take months.
ALE pays the increase over your normal spending, not your whole budget. This calculator estimates that increase and checks it against your limit.
How the calculation works
Extra cost per month = temporary housing + extra food + extra travel + other − normal costs that stop
ALE need = extra cost per month × months out of your home
Shortfall = ALE need − your limit (if positive)
Worked example
The calculator opens with this example: a homeowner expects to be out for 6 months after a fire, renting a furnished place for $2,400 a month, with $400 of extra food, $150 of extra travel and $50 of other costs. Their mortgage continues, so no normal costs stop. Their policy’s ALE limit is $15,000.
| Line | Calculation | Amount |
|---|---|---|
| Temporary costs per month | $2,400 + $400 + $150 + $50 | $3,000 |
| Extra cost per month | Nothing stops | $3,000 |
| ALE need | $3,000 × 6 | $18,000 |
| ALE limit | $15,000 | |
| Shortfall | $3,000 |
At $3,000 a month, the limit lasts 5 months. If repairs ran to 8 months, the shortfall would grow to $9,000.
A renter’s example
A renter pays $1,600 a month. After a fire, a temporary apartment costs $2,000 a month and they spend $300 more on food. Because they stop paying normal rent on the damaged unit, the extra cost is $2,000 + $300 − $1,600 = $700 a month. Over 4 months, they need $2,800 of ALE.
How limits are set
| Policy type | How ALE is often expressed |
|---|---|
| Homeowners | A percentage of the dwelling limit, or a dollar amount |
| Renters | A dollar amount or a percentage of personal property |
| Some policies | A time limit, such as 12 or 24 months |
Your declarations page shows which applies. If your limit is a percentage, raising your dwelling limit to match rebuild cost also raises your ALE.
What changes the answer
- Local rental market. After a regional disaster, temporary housing can cost far more than usual.
- Family size and pets. Larger households and pets can limit options and raise costs.
- Repair time. Major rebuilds take longer than repairs; permits and contractor availability matter.
- Civil authority. Some policies pay ALE for a limited time if authorities bar access to your home after nearby damage.
Common mistakes
| Mistake | Better approach |
|---|---|
| Counting your whole budget | ALE pays only the increase |
| Forgetting the mortgage continues | Owners usually keep paying it |
| Not keeping receipts | You need them to be reimbursed |
| Assuming the limit has no end | Track spending against the limit |
Next steps
Check your dwelling limit with the home rebuild cost calculator, your belongings and liability with the home and renters checker, and read how much renters insurance you need for the full picture.
Questions people ask
What is additional living expenses coverage?
It pays the extra cost of living somewhere else, such as rent, hotel and meals, while a covered loss makes your home unlivable. It pays only the increase over your normal costs, up to the policy limit.
How much loss of use coverage do I need?
Enough to cover your extra monthly costs for as long as repairs could take. Multiply the extra cost per month by a realistic number of months and compare with your Coverage D limit.
Is ALE a percentage of my dwelling coverage?
On many homeowners policies, loss of use is set as a percentage of the dwelling limit; renters policies often use a dollar amount. Some policies limit it by time instead. Check your declarations page.
Does ALE pay my mortgage?
No. It pays extra costs you would not have if you were still at home. Your mortgage continues, so you keep paying it.
Do renters have ALE coverage?
Most renters policies include it. Because renters often stop paying rent on an unlivable unit, the extra cost may be smaller.
What receipts do I need for an ALE claim?
Keep receipts for lodging, meals, travel and other costs, and track your normal spending so the insurer can see the increase.
What if repairs take longer than my ALE limit lasts?
You pay the rest yourself. The Texas Department of Insurance advises watching your spending so the limit lasts until repairs are done.
Sources
- Home insurance guide — Texas Department of Insurance, accessed
- Homeowners Insurance — National Association of Insurance Commissioners (NAIC), accessed
Educational information, not insurance, legal or financial advice. Coverlee does not sell insurance. How we calculate
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