What Are Additional Living Expenses (ALE)?

Additional Living Expenses (ALE), also called “Loss of Use” coverage, is a homeowners insurance provision that pays for temporary housing and increased living costs when your home becomes uninhabitable due to a covered loss. If severe roof damage from hail, wind, or fire forces you to temporarily relocate during repairs, ALE coverage reimburses the difference between your normal living expenses and the higher costs of temporary accommodation.

In simple terms: If a storm damages your Colorado Springs roof so badly you can’t safely live in your home while it’s being repaired, your insurance company pays for your hotel, rental home, and the extra costs of eating out instead of cooking at home—up to your policy limits.

Understanding ALE coverage is critical for homeowners facing major roof damage that renders their home temporarily uninhabitable. Many policyholders don’t realize this coverage exists until they need it, missing opportunities to recover thousands of dollars in legitimate expenses.

← Back to Roof Insurance Glossary

How Additional Living Expenses Coverage Works

ALE coverage activates when a covered peril makes your home uninhabitable, requiring temporary relocation during repairs.

What Triggers ALE Coverage

Covered perils that commonly trigger ALE:

Severe roof damage: A hailstorm tears off significant portions of your roof, allowing water intrusion that makes living spaces unsafe or unusable. Wind damage that removes large sections of roofing, creating dangerous conditions or water exposure.

Fire damage: Fire or smoke damage to your home’s structure, including roof damage from fire spread or firefighting efforts, requires extensive repairs before occupancy is safe.

Water damage from roof failure: Storm damage to your roof allows extensive water intrusion that damages interior spaces, requires mold remediation, or compromises electrical systems.

Structural damage: Severe weather causes structural damage that makes your home unsafe for occupancy during repair work.

The critical requirement: The damage must stem from a covered peril listed in your policy, and the home must be genuinely uninhabitable—not just inconvenient to live in during repairs.

What “Uninhabitable” Actually Means

Insurance companies often dispute whether a home is truly uninhabitable, attempting to deny ALE claims by arguing you could have remained in the home during repairs.

Legitimate uninhabitability factors:

Safety hazards: Exposed electrical wiring, structural instability, missing roof sections that allow weather exposure, or conditions that pose immediate danger to occupants.

Lack of essential utilities: Loss of electricity, water, heating, or cooling for extended periods. In Colorado’s climate, loss of heating in winter or cooling in extreme summer heat can render a home uninhabitable.

Extensive water intrusion: Active leaking through damaged roofing that affects living spaces, bedrooms, or kitchen areas. Ongoing water intrusion that prevents safe use of electrical systems or creates slip hazards.

Health hazards: Mold growth from water intrusion, smoke damage affecting air quality, or contamination from fire damage requiring professional remediation.

Construction zone conditions: Extensive repair work that requires complete access to living spaces, creates dust and debris throughout the home, or involves heavy equipment and contractors occupying the interior for weeks.

Important consideration: You don’t need to wait for the insurance company to declare your home uninhabitable. If conditions genuinely prevent safe occupancy, you have the right to relocate and claim ALE—but document the conditions thoroughly with photos and videos before leaving.

Coverage Limits and Time Periods

ALE coverage has both dollar limits and time limits that vary by policy.

Typical coverage structures:

Percentage of dwelling coverage: Most policies provide ALE coverage equal to 20-30% of your dwelling coverage amount. If your home is insured for $400,000, your ALE coverage might be $80,000-$120,000.

Time limits: Policies typically cover expenses for the “shortest time required to repair or replace the damage” or until you permanently relocate, whichever comes first. Some policies include specific time limits (12 months, 24 months) regardless of repair completion.

Fair rental value option: Some policies offer a choice between ALE (covering increased costs) or fair rental value (paying what it would cost to rent a similar home), whichever is greater.

The critical fine print: Time limits usually start from the date of loss, not the date repairs begin. Delays in getting approval, waiting for contractors, or dealing with claim disputes can consume coverage time before repairs even start.

What ALE Coverage Pays For

ALE coverage reimburses the difference between your normal living expenses and your temporary living expenses—not the full cost of everything.

Covered Temporary Housing Costs

Hotel or motel expenses: Reasonable hotel accommodations for you and your family during the displacement period. This includes daily room charges, taxes, and fees.

Rental housing: If you rent a temporary apartment, house, or condominium during repairs, ALE covers the rental cost up to policy limits.

The “increased cost” calculation: If your normal mortgage payment is $2,500/month and you rent a temporary home for $3,200/month, ALE pays the $700 difference—not the full $3,200. You’re still responsible for your mortgage payment on your uninhabitable home.

Exception for no-mortgage homeowners: If you own your home outright with no mortgage payment, ALE typically covers the full reasonable rental cost since you have no normal housing payment.

Covered Additional Expenses

Increased food costs: The difference between your normal grocery costs and eating at restaurants during displacement. If you typically spend $800/month on groceries but spend $1,600 eating out while displaced, ALE covers the $800 difference.

Pet boarding: If temporary housing doesn’t accommodate pets, reasonable pet boarding or kennel fees are typically covered.

Storage costs: If you need to place furniture and belongings in storage during extensive repairs, storage unit rental is usually covered.

Increased transportation costs: Additional mileage and fuel costs if your temporary housing is farther from work, school, or regular activities than your permanent home.

Laundry expenses: If temporary housing lacks laundry facilities and you incur laundromat expenses you wouldn’t normally have, these increased costs are covered.

Moving expenses: Some policies cover the cost of moving your belongings from your home to temporary housing and back again.

What ALE Does NOT Cover

Normal living expenses: Your regular mortgage payment, typical grocery budget, normal commuting costs, and standard utility bills aren’t covered—only the increased amounts.

Luxury upgrades: While you’re entitled to comparable housing, insurance won’t pay for a significantly nicer rental than your actual home. If you live in a modest 1,200 sq ft ranch, they won’t pay for a luxury 2,500 sq ft penthouse.

Expenses after home is habitable: Once your home is safe to occupy, ALE coverage stops—even if repairs aren’t 100% complete. If your contractor hasn’t finished painting but all essential repairs are done, coverage may end.

Long-term housing: ALE covers temporary displacement only. If you decide to permanently relocate rather than return to your repaired home, coverage stops when you make that decision.

Avoidable expenses: If you choose luxury accommodations when reasonable alternatives exist, the insurance company may only reimburse what comparable standard housing would cost.

Common ALE Coverage Issues in Colorado Springs

Geographic and climate factors unique to Colorado Springs create specific ALE claim challenges.

Temperature Extremes and Habitability

Winter heating requirements: Colorado Springs winters regularly drop below freezing. If roof damage compromises your heating system or creates drafts that heating can’t overcome, your home may be uninhabitable even if structurally intact.

Insurance companies sometimes argue that space heaters make a home habitable during heating system repairs. However, if space heaters can’t maintain safe temperatures throughout the home, especially in bedrooms where children or elderly occupants sleep, the home remains uninhabitable.

Summer heat considerations: While less common, severe summer heat combined with loss of air conditioning due to roof damage or electrical issues can also render a home uninhabitable, particularly for vulnerable occupants with health conditions.

High-Altitude Construction Delays

Weather-dependent repairs: Roofing work in Colorado Springs is highly weather-dependent. Winter snow, summer afternoon storms, and high winds can delay repairs for days or weeks at a time.

Insurance companies may dispute extended ALE claims, arguing repairs are taking unreasonably long. However, contractors can’t safely work on roofs during snow, ice, or high winds—delays are often unavoidable, not unreasonable.

Contractor availability: After major hailstorms that damage thousands of roofs across Colorado Springs, contractor backlogs can extend repair timelines by months. This isn’t the homeowner’s fault but affects ALE duration.

Temporary Housing Cost Disparities

Hotel costs vs. mortgage payments: Colorado Springs hotel rates ($120-$200/night) quickly exceed typical mortgage payments. A family displaced for 60 days might incur $10,000-$15,000 in hotel costs while still paying their mortgage.

Rental market limitations: Finding short-term rental housing (3-6 months) in Colorado Springs can be challenging. Many landlords require 12-month leases, and furnished short-term rentals command premium prices.

Military family considerations: Colorado Springs’ large military population creates unique situations where PCS orders, deployment schedules, or base housing regulations complicate ALE claims.

Maximizing Your ALE Claim

Proper documentation and understanding of your rights significantly impacts ALE claim outcomes.

Document Everything Before You Leave

Photograph uninhabitable conditions: Before relocating, thoroughly document why your home is uninhabitable. Photograph exposed areas, water damage, missing roof sections, and any safety hazards.

Video walk-through: Record a video walk-through explaining why each affected area makes the home unlivable. Narrate the video: “The master bedroom ceiling is actively leaking, the carpet is saturated, and there’s no way to sleep here safely.”

Temperature documentation: If heating or cooling loss is a factor, document indoor temperatures with photos of thermostats showing unsafe conditions.

Contractor statements: Get written statements from your roofing contractor explaining why the home is unsafe for occupancy during repairs and estimated repair duration.

Keep Detailed Expense Records

Every receipt matters: Save every receipt for temporary housing, increased food costs, pet boarding, storage, additional transportation, and any other increased expenses.

Create a spreadsheet: Track normal expenses vs. displacement expenses in a clear spreadsheet showing the increased cost. Example:

Normal monthly groceries: $800
Restaurant meals during displacement: $1,600
Increased cost (reimbursable): $800

Weekly expense reports: Consider submitting weekly expense reports to your insurance company rather than waiting until repairs are complete. This establishes a pattern of legitimate expenses and may prompt faster payment.

Explain unusual expenses: If you incur expenses that might not be obviously ALE-related, provide written explanations. “Pet boarding necessary because temporary apartment doesn’t allow dogs” clarifies the expense.

Communicate Proactively with Your Insurance Company

Notify immediately: As soon as you determine your home is uninhabitable, notify your insurance company in writing (email creates a record) that you’re relocating and incurring ALE expenses.

Don’t wait for approval: You don’t need pre-approval to relocate if your home is genuinely uninhabitable. Your policy obligates you to protect the property from further damage, which may include vacating to allow repairs.

Provide regular updates: Keep your adjuster informed of repair progress, contractor schedules, and any delays. This prevents disputes about whether repairs are taking unreasonably long.

Address disputes quickly: If your insurance company denies ALE or claims your home is habitable when you disagree, respond immediately with documented evidence supporting uninhabitability.

Understand Reasonable Accommodation Standards

Comparable housing: You’re entitled to temporary housing reasonably comparable to your actual home—not identical, but similar in size, location, and amenities.

Family size considerations: A family of five can’t be expected to crowd into a single hotel room for months. Multiple rooms or larger accommodations may be reasonable.

Pet accommodations: If you have pets, you’re entitled to pet-friendly temporary housing even if it costs slightly more than non-pet housing.

Location factors: Temporary housing should maintain reasonable proximity to work, schools, and essential services. If comparable housing near your home isn’t available, increased transportation costs to maintain your normal routine should be covered.

ALE Claim Disputes and How to Challenge Them

Insurance companies frequently dispute ALE claims, using various arguments to deny or minimize coverage.

Common Denial Arguments

“The home is habitable”: Insurance argues that despite damage, you could have remained in the home during repairs. Challenge this with documented safety hazards, contractor statements, and code compliance issues.

“Repairs are taking unreasonably long”: Insurance claims the contractor is working too slowly, suggesting delays are your fault. Counter with contractor statements explaining weather delays, material availability, or complexity of repairs.

“You’re living more expensively than necessary”: Insurance argues you chose luxury accommodations when cheaper options existed. Respond with evidence you selected reasonable, comparable housing and documentation of available options at the time.

“Some of these expenses aren’t covered”: Insurance disputes specific expense categories. Reference your policy language specifically covering those expenses and provide detailed documentation of necessity.

Challenging Insufficient ALE Payments

Request written denial: If insurance denies or reduces ALE payments, request written explanation citing specific policy language supporting their position.

Gather comparable housing data: If insurance claims your temporary housing costs are excessive, provide evidence of actual available housing costs in Colorado Springs during your displacement period. Zillow, Apartments.com, and hotel booking site data can document actual market rates.

Document necessity: For any disputed expense, provide written explanation of why it was necessary. “Pet boarding required because temporary housing contract prohibited pets” establishes necessity.

Cite policy language: Reference the specific provisions of your ALE coverage that support your claim. Many policyholders don’t realize their policies define covered expenses more broadly than insurance companies initially indicate.

Escalation Options

Request supervisor review: If your adjuster denies legitimate ALE expenses, request review by their supervisor or a senior adjuster.

File formal complaint: Contact the Colorado Division of Insurance to file a complaint if you believe your insurance company is improperly denying covered expenses.

Public adjuster: For complex, high-value ALE claims, a public adjuster can advocate on your behalf for a percentage (typically 10%) of the settlement.

Legal consultation: For significant disputes, consult an attorney specializing in insurance claims. Colorado law provides remedies for bad faith denial of benefits, including attorney fees in some circumstances.

Real Colorado Springs ALE Scenarios

Understanding how ALE applies in actual situations helps homeowners recognize when they have coverage.

Scenario 1: Major Hail Damage with Interior Water Intrusion

Situation: June hailstorm causes extensive roof damage to a Briargate home. Missing shingles and damaged flashing allow water intrusion during subsequent storms. Water damages master bedroom ceiling, causes electrical shorts, and saturates bedroom carpet.

ALE application: Family relocates to hotel while emergency tarping is completed and full roof replacement scheduled. Insurance covers 45 nights of hotel accommodations ($6,750), increased food costs ($1,800), and storage of bedroom furniture ($450). Total ALE claim: $9,000.

Timeline: Family returns home once new roof is installed and interior repairs (ceiling, electrical, carpet) are completed, making bedrooms safe for occupancy.

Scenario 2: Wind Damage with Extended Repair Timeline

Situation: September windstorm removes significant roof sections on a Fountain home. Contractor estimates 8-week repair timeline due to weather windows and material availability for tile roof.

ALE application: Family rents short-term furnished home for 10 weeks while repairs are completed. Monthly rental: $2,800 (normal mortgage: $1,900). Insurance covers $900/month difference ($2,250 for 2.5 months), plus increased utility costs ($180), and one-time moving expenses ($600). Total ALE claim: $3,030.

Dispute: Insurance initially argues family could have remained in home with tarp covering damage. Homeowner provides contractor statement that extensive interior work requires full access and poses safety hazards with children present. Insurance approves full claim.

Scenario 3: Fire Damage from Adjacent Property

Situation: House fire at neighboring property spreads to roof and attic of a Rockrimmon home. Fire and smoke damage render home uninhabitable requiring extensive repairs estimated at 5-6 months.

ALE application: Family rents apartment for 6 months. Rental cost: $2,200/month (normal mortgage: $2,100). Insurance covers $100/month difference ($600), full apartment security deposit ($2,200), increased restaurant costs ($3,600), storage unit ($900), pet boarding for 2 cats ($1,080), and moving costs ($800). Total ALE claim: $9,180.

Timeline challenge: Repairs take 7 months due to asbestos remediation discovery and subcontractor delays. Insurance initially stops ALE payments at 6 months. Homeowner provides documentation of legitimate delays and insurance extends coverage for additional month.

ALE and Roof Replacement Timelines

Understanding realistic repair timelines helps set proper ALE claim expectations.

Typical Colorado Springs Roof Replacement Timeline

Asphalt shingle replacement:

Emergency tarping/stabilization: 1-3 days
Insurance inspection and approval: 1-2 weeks
Contractor scheduling (non-storm season): 2-4 weeks
Actual roof replacement: 1-3 days
Interior repairs (if needed): 1-3 weeks
Total displacement: 5-9 weeks typical

Tile or specialty roofing:

Material ordering lead time: 3-8 weeks
Installation complexity: 4-7 days
Total displacement: 8-12 weeks typical

Storm season backlogs:

After major hailstorms affecting thousands of homes: 3-6 month contractor wait times common
Insurance disputes and re-inspections: Add 2-8 weeks
Total displacement: 4-8 months possible

Weather Impact on ALE Duration

Winter (November-March): Snow, ice, and freezing temperatures prevent roofing work. A roof project starting in November might not complete until April, extending ALE duration through winter months.

Spring/Summer storm season: Afternoon thunderstorms and hail events can halt work mid-project, adding days or weeks to timelines.

Wind delays: Colorado Springs’ high winds (50+ mph gusts) prevent safe roofing work even in otherwise good weather.

Temperature restrictions: Many roofing materials can’t be installed below certain temperatures (typically 40°F for asphalt shingles), limiting work windows in cold months.

Common Questions About Additional Living Expenses

How long does ALE coverage last?

ALE coverage typically lasts for the shortest time required to repair or replace your home, or until you reach your policy’s dollar limit or time limit (often 12-24 months), whichever comes first. The clock usually starts from the date of loss, not when repairs begin. If legitimate delays extend repairs beyond typical timelines—like contractor availability after a major storm, weather preventing work, or material backorders—many policies continue coverage as long as repairs are actively progressing. Document all delays with contractor communications and weather data to support extended ALE claims.

Do I need pre-approval before relocating?

No. If your home is genuinely uninhabitable due to covered damage, you have the right to relocate immediately for safety. Your policy requires you to protect the property from further damage and take reasonable steps for your family’s safety. However, notify your insurance company as soon as possible (ideally within 24-48 hours) that you’ve relocated and are incurring ALE expenses. Save all receipts from day one. Waiting for insurance approval before relocating when your home is unsafe could even violate your duty to mitigate damages.

What if my temporary housing costs more than my mortgage?

This is common, especially with hotel stays. ALE coverage pays the difference between your normal housing costs and temporary housing costs. However, if you own your home outright with no mortgage, ALE typically covers the full reasonable cost of temporary housing since you have no normal housing payment to subtract. The key word is “reasonable”—insurance will pay for comparable housing but not luxury upgrades. If you normally live in a 1,200 sq ft home, they won’t pay for a 2,500 sq ft luxury rental.

Can I stay with family instead of renting and still claim ALE?

Staying with family doesn’t generate reimbursable temporary housing costs, but you can still claim other increased expenses like additional food costs if you’re contributing to groceries, increased transportation costs if their home is farther from work, or storage costs if you need to store your belongings. You cannot charge your family “rent” and submit it as an ALE claim. Some policyholders prefer to stay with family briefly while searching for appropriate temporary housing rather than making rushed housing decisions immediately after disaster.

What happens if repairs aren’t done when ALE runs out?

If your policy has a time limit (e.g., 12 months) and repairs aren’t complete when time expires, coverage stops regardless of repair status—unless you can document that delays were beyond your control and legitimate (severe contractor backlogs after major disaster, material unavailability, weather preventing work). Request a policy limit extension in writing before limits expire, providing documentation of repair progress and delay causes. In some cases, if the insurance company caused delays through claim disputes or slow payment, they may be required to extend coverage despite policy limits.

Does ALE cover all family members?

Yes, ALE covers reasonable temporary housing and increased expenses for all household members who normally live in the home—including children, extended family members who reside with you, and in most cases, pets. However, if adult family members maintain separate residences and were just visiting when damage occurred, their temporary housing isn’t covered. The key is whether they are regular household members whose normal residence is your home.

Can insurance make me move to cheaper housing to reduce costs?

Once you’ve selected reasonable, comparable temporary housing, insurance generally cannot force you to move to cheaper accommodations just to reduce their costs—especially if you’ve signed a lease or made commitments. However, if you selected housing that’s significantly more expensive than necessary when reasonable alternatives were available, insurance can limit reimbursement to what comparable reasonable housing would cost. Document your housing selection process, available options at the time, and why you chose your temporary housing to defend against claims you chose unnecessarily expensive accommodations.

Related Insurance Claim Terms

Wind Damage – Understanding wind damage helps identify when roof damage might trigger ALE coverage needs.

Hail Damage – Severe hail damage is one of the most common triggers for ALE claims in Colorado Springs.

Loss of Use – Alternative term for Additional Living Expenses coverage in some insurance policies.

Coverage D – The standard policy section designation for ALE coverage in homeowners insurance policies.

Dwelling Coverage – Your ALE limits are typically a percentage (20-30%) of your dwelling coverage amount.

Fair Rental Value – Alternative ALE calculation method paying what it would cost to rent a similar home.

Mitigation of Damages – Your policy duty to prevent further loss, which includes relocating when necessary for safety.

Claim Denial – Understanding denial reasons helps challenge improper ALE claim denials.

Need Help Documenting Roof Damage for ALE Claims?

If you’re facing roof damage that may require temporary relocation, or if you’re disputing an ALE claim denial, proper documentation of uninhabitable conditions is critical.

As a Colorado Springs roof consultant with extensive experience in insurance claim documentation, I can provide comprehensive roof damage assessments that clearly establish why your home is uninhabitable and support your ALE claim. My detailed reports include photographic evidence, contractor statements about repair timelines, and clear documentation of safety hazards that insurance companies can’t easily dispute.

Whether you need initial damage documentation before relocating, support challenging an ALE denial, or expert testimony about typical Colorado Springs repair timelines and weather-related delays, I provide the professional documentation that strengthens your claim.

I understand how Colorado’s unique climate affects both roof damage severity and repair timelines—critical factors in ALE claim duration and approval.

📞 Call for a consultation: (719) 210-8699
📧 Email: gerald@winik.io

Schedule Your Independent Roof Inspection

← Back to Roof Insurance Glossary

Part of the Gerald Winik Roof Insurance Claims Glossary | Serving Colorado Springs homeowners since 2013