Additional Living Expenses (ALE) is arguably the most critical component of your homeowners policy when disaster strikes, yet it is often the least understood by policyholders.
How ALE Limits Work
Your ALE coverage usually has a limit, typically calculated as a percentage of your total dwelling coverage (often 20% to 30%). Some policies offer "actual loss sustained" coverage for a specific time period, like 12 or 24 months, without a strict dollar limit.
The Importance of Budgeting
Because there is a limit, how you spend your ALE matters. Staying in a luxury hotel and eating out three meals a day will drain your ALE bucket rapidly. If repairs take six months and you run out of ALE funds in month four, you will be paying out of pocket for the remainder of your displacement.
NuBNB works closely with adjusters to ensure the housing we provide fits within your ALE budget for the projected duration of your repairs, protecting you from unexpected out-of-pocket expenses.