If You’re Out of Your Home, ALE Coverage Matters More Than You Think
If you’ve had to leave your home because of storm damage, a fire, or some other major loss, you’re dealing with enough stress already. Now you’ve got extra costs piling up – hotels, meals, gas, laundry, maybe even pet boarding.
That’s where ALE (Additional Living Expenses) coverage comes in. It’s part of most homeowner insurance policies, and it’s designed to help cover the extra expenses you’re forced to take on while your home is unlivable.
But here’s the catch: it doesn’t work the way most people expect.
A lot of policyholders think, “I’ll keep my receipts and get reimbursed.” Then they’re shocked when the insurance company only covers part of what they spent.
Let’s clear it up – and show you how to get the full reimbursement you actually qualify for.
Let’s Start with How ALE Really Works
Here’s the deal: ALE doesn’t reimburse everything. It only covers what you’re spending above and beyond your normal costs.
Say you’re in a hotel for a week after a pipe burst in your ceiling. You eat out for every meal and rack up $1,000 in restaurant bills.
Now think about what you normally spend on groceries at home – maybe $100 a week.
The insurance company will look at those numbers and say:
$1,000 (new cost) – $100 (normal cost) = $900 (covered amount)
That’s what they’ll reimburse you. The extra. Not the total.
This applies across the board – lodging, food, gas, laundry, and anything else tied to being displaced.
Tip #1: Know What You Normally Spend Before the Loss
This one’s simple – but powerful. You can’t claim “extra” if you don’t know your baseline.
Think back on your regular routine:
- What’s your weekly grocery bill?
- How much do you normally spend on gas?
- What do utilities usually run?
- Do you have laundry costs, pet care, or a cleaning service?
Go grab:
- A couple months’ worth of grocery receipts or bank statements
- Gas receipts or your mileage history
- Past utility bills
These real numbers help prove what “normal” looks like for your household. That way, when you show new, higher expenses, your claim is grounded in facts – not guesses.
YPA can help you pull this together if you’re overwhelmed. We’ve done it hundreds of times.
Tip #2: Track Every Extra Expense from Day One
If you’re displaced – even for a few days – start tracking everything immediately.
Every dollar counts, and the insurance company isn’t going to chase you down to remind you what qualifies. You’ve got to be the one to build the record.
Here’s what to save:
- Hotel bills (including taxes and fees)
- Meal receipts (note if meals were provided by your hotel)
- Laundry/dry cleaning
- Extra gas or tolls (especially if you’re staying farther from work or school)
- Temporary rentals (furniture, kitchen equipment)
- Pet boarding if your pets can’t stay with you
How to stay organized:
- Snap photos of receipts as you get them
- Keep them in a labeled folder (physical or digital)
- Use a simple spreadsheet or expense tracker app
You don’t need anything fancy – just consistent. Organized documentation is your best friend when it’s time to submit your claim.
Tip #3: Stay Somewhere Comparable to Your Normal Living Situation
This is a big one.
ALE coverage isn’t meant to upgrade your lifestyle. It’s meant to help you maintain your standard of living – not exceed it.
So if you lived in a modest 3-bedroom home and book a five-star hotel suite with ocean views, the insurance company’s going to push back.
What they’re looking for is “comparable accommodations.”
- If you had three bedrooms, look for a suite or rental with three bedrooms.
- If you had a full kitchen, try to stay somewhere with kitchen access.
- If you lived in a rural area, don’t pick a high-end urban resort.
That said, you don’t have to suffer. You just need to keep things aligned with how you normally live.
Not sure if your choice fits? YPA can weigh in before you book.
Tip #4: Know the Limits of Your ALE Coverage
ALE isn’t an open tab. Most insurance policies cap ALE coverage based on your dwelling limit – usually 20% to 30% of the insured value of your home.
So if your home is insured for $300,000, you might have $60,000 to $90,000 in ALE coverage.
There’s also a time limit. Most policies give you 12 months to use it, though some allow up to 24 months depending on the policy and the cause of the loss.
Keep track of:
- How much you’ve used so far
- How long you’ve been displaced
- What you may still need for the road ahead
We’ve seen people run out of ALE coverage halfway through rebuilding – not because they overspent, but because they didn’t track it.
Tip #5: Don’t Assume You’ll Get Paid Back for Everything
This one stings the most. People file their ALE claim with a pile of receipts, expecting a full refund – and get a fraction of what they spent.
That’s because the insurance company looks for:
- Excessive spending
- Missing documentation
- Unqualified expenses (e.g. room service, upgrades, alcohol, premium rentals)
That’s why working with a public adjuster makes such a difference.
At YPA, we:
- Review your receipts and help you format them properly
- Flag anything the insurer might reject
- Build a clean, strong ALE submission that’s harder to dispute
- Push back if they try to reduce your reimbursement unfairly
We know how insurance companies evaluate these claims – and we know how to get yours taken seriously.
Final Word: Don’t Leave Money on the Table
You’ve been displaced. You’re spending more. You’re doing your best to keep things together. The last thing you should have to worry about is a confusing, frustrating claims process.
ALE reimbursement is one area where small missteps can cost you thousands.
So here’s what to do:
- Track your normal costs.
- Log every extra expense tied to your displacement.
- Keep your choices aligned with your normal lifestyle.
- Stay within policy limits – and know what those limits are.
- Work with a public adjuster to help you get every dollar you’re owed.
If you’re overwhelmed, unsure, or just don’t want to do it alone – YPA Public Adjusters has your back. We know the playbook, and we’ll make sure your insurance company plays fair.
Want help with your ALE claim? Contact YPA today at (682) 267-0336 and let us help you get the full reimbursement you deserve – without the guesswork.