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Ask an Agent: What is Additional Living Expenses Coverage?

Published: July 2016

Additional living expenses coverage is part of most homeowners insurance policies. It may help cover increased living costs if you can't live in your home after a covered loss, such as a fire. This coverage may help pay for expenses like hotel and restaurant bills or rental payments while you are temporarily unable to live in your home after a covered loss.

In this video, Allstate agency owner Cheryl Bowker tells the story of one customer who lost her home in a fire. When she and her son were left without a place to stay, additional living expenses coverage helped them begin to recover from their loss.

Video Transcript

Hi, I'm Cheryl Bowker, and I'm an Allstate agency owner in Livonia, Michigan. I'm here to talk about additional living expenses coverage.

This coverage is standard on most homeowners, condo and renters insurance policies. If you're unable to live in your home after a covered loss, this coverage may help pay for your increased living expenses, such as hotel bills.

There was this one customer who I'll never forget. She had been with our agency for 27 years.

One day she came home to find her house surrounded by fire trucks. All she could do was watch as her home burned.

She called my office right away — she needed a place for her and her son to stay that night. We worked with the claims team to help find a hotel room for both of them.

The next day the customer and I went to see the house. Half the structure had burned down. The house needed to be demolished and completely rebuilt. She was just devastated.

She had lost everything except the clothes on her back, and she needed somewhere to live. Fortunately, the team assigned to her claim was able to set her up in a condo near her house and her work.

Additional living expenses coverage helped pay for renting the condo and things like kitchen supplies — everything she needed to feel at home. She ended up being in that condo for nearly a year. In all, she incurred about $35,000 in additional costs. Fortunately, she had enough coverage for additional living expenses to cover the cost.

Without additional living expenses coverage, this woman would have had to pay out of pocket for those unexpected costs.


An Allstate agent can answer coverage questions and help you find ways to protect what matters most.

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This content is for informational purposes only and may not be applicable to all situations.

Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2020 Allstate Insurance Company, Northbrook, IL.
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