Loss of Use and Additional Living Expenses After a Home Claim

Claims & Underwriting · InsureToday24 (BNW Services LLC), a licensed independent agency across MO, KS, NE, TN, OK, AR & CO.

# Loss of Use and Additional Living Expenses After a Home Claim

If a fire, storm, or major water loss makes your home unlivable, the repair bill isn't your only problem — you still need somewhere to sleep, eat, and do laundry while your house is being fixed. That's what loss of use coverage, also called Additional Living Expenses (ALE), is for. It's one of the most valuable and least understood parts of a homeowners or renters policy. Here's how it works for families across Missouri, Kansas, and the rest of our seven-state footprint.

What Loss of Use / ALE Covers

Loss of use coverage pays the extra costs you incur to maintain a normal standard of living when a covered loss forces you out of your home. The key word is *extra* — it covers the difference between your normal expenses and the higher ones you face while displaced.

Commonly covered costs include:

For landlords and rental property, a related coverage — fair rental value — reimburses the rent you lose while a covered loss makes the unit uninhabitable.

The "Extra" Rule Explained

ALE is designed to keep you *whole*, not to give you a windfall. If you normally spend $600 a month on groceries and now spend $900 eating out, ALE covers the $300 difference, not the whole $900 — because you'd have spent that $600 anyway. Keeping your normal expenses in mind helps set realistic expectations and speeds up reimbursement.

This is why documentation matters so much. Save every receipt while you're displaced, and be ready to show what your normal spending looked like before the loss.

What Triggers Coverage

Loss of use generally applies when two conditions are both met:

1. The damage is caused by a covered peril (fire, windstorm, and similar named or open perils, depending on your policy).

2. The damage makes the home uninhabitable — you genuinely can't live there safely.

Cosmetic damage that leaves the home livable usually won't trigger ALE. And because flood is excluded from standard home policies across Missouri and Kansas, a flood-caused displacement wouldn't be covered unless you carry separate flood insurance.

How Much Coverage You Have

Loss of use is usually written as a percentage of your dwelling coverage — often something like 20% to 30%, though it varies by policy. On a home insured for $300,000, a 20% ALE limit would provide up to $60,000 for additional living expenses. Some policies cap ALE by a time limit instead of, or in addition to, a dollar amount. Check your declarations page, or ask us to read it with you, so you know your real cushion before you ever need it.

How to Use ALE the Right Way

Renters Have This Too

Renters insurance includes loss of use as well. If your apartment becomes uninhabitable after a covered loss, your renters policy can pay for temporary housing and extra costs — a big reason renters coverage is worth far more than its low price. We can quote renters coverage right on insuretoday24.com through our embedded application.

How BNW Helps

When your home is unlivable, the last thing you want is to fight about hotel receipts. As your independent agent, we make sure your ALE limit is adequate *before* a loss, and we help you claim it correctly *after* one. Call or text Lucy, our AI receptionist, at (573) 594-5148, or reach us at insuretoday24.com.

References

1. Insurance Information Institute — https://www.iii.org

2. National Association of Insurance Commissioners — https://www.naic.org

3. Investopedia: Additional Living Expense Insurance — https://www.investopedia.com/terms/a/additional-living-expense-ale-insurance.asp

4. Missouri Department of Commerce & Insurance — https://insurance.mo.gov

5. Kansas Insurance Department — https://insurance.kansas.gov

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