What Is Loss of Use Coverage and When Does It Apply?

Unexpected events such as wildfires, hail or plumbing issues may make a Colorado home temporarily unlivable. Loss of use coverage, also known as additional living expenses (ALE), can help cover related costs. Alliance General Insurance Agency can help you understand how this coverage works.

What Is Loss of Use Coverage?

Loss of use coverage is a component of most homeowners insurance policies that can help pay for extra living expenses if your home becomes uninhabitable due to a covered loss. If you’re forced to leave your home because of an event listed in your policy, your insurance may help cover costs like:

• Temporary housing, such as a hotel stay or short-term rental
• Meals that exceed your normal grocery expenses
• Laundry and storage fees while your belongings are displaced
• Additional transportation costs if your temporary location is farther from work or school

When Does Loss of Use Coverage Apply?

Loss of use coverage may apply when your home is damaged by a covered peril included in your policy, subject to terms and limitations. In Colorado, where wildfires and severe storms are common, this coverage can be especially valuable. It may help if you are required to leave your home due to:

• Fire damage
• Major storm impact
• Plumbing-related issues
• Vandalism
• Falling objects (e.g., trees and tree limbs)

Coverage applies only to covered losses and may not include voluntary evacuations, excluded events or costs that exceed your policy limits.

We’re Here to Help Colorado Homeowners

Contact Alliance General Insurance Agency today to discuss your homeowners insurance options and get a free custom quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.