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Reimburses the policyholder for the cost of temporary housing, food, and other essential living expenses, if the home is damaged by a covered peril that makes the home temporarily uninhabitable. Policies cap the amount of ALE payable to 20 percent of the policy’s dwelling coverage.
Texas Department of Insurance and Office of Public Insurance Counsel - Cite This Source - This Definition- Browse Related Terms: Actual cash value, Actual cash value (ACV), Additional Living Expenses, Additional living expenses (ALE), Depreciation, Earthquake Insurance, Exclusion, flood insurance, Full Replacement Policy, Guaranteed Replacement Cost Coverage, Justified complaint, Loss of use, Renters insurance, Replacement Cost