Does renters insurance cover hotel costs if I have to move out temporarily?

Yes, renters insurance generally covers hotel costs and other living expenses if a covered loss forces you to move out of your rental temporarily. This protection is called additional living expenses, or ALE, sometimes labeled loss of use on your policy.

ALE kicks in when your rental becomes unlivable because of a covered event, like a fire, a burst pipe, or major storm damage. It helps pay the extra costs of living somewhere else while repairs are made, so you are not paying out of pocket for both your normal expenses and temporary housing.

Covered expenses can include a hotel or temporary apartment, extra restaurant meals above what you normally spend, and even added costs like extra mileage or pet boarding in some cases. The key word is extra. ALE pays the difference between your normal cost of living and your higher temporary cost, not your entire bill.

For example, suppose a fire in your apartment building near Athens forces you out for two months while the unit is repaired. A hotel costs $120 a night, adding up to about $7,200, plus higher meal costs because you have no kitchen. Your renters policy with ALE coverage would reimburse those extra expenses up to your policy limit.

Keep in mind ALE applies only when the cause of the loss is covered, and it has a dollar limit and sometimes a time limit, so it is worth knowing yours before you need it. You can learn more on our renters insurance page. Want to confirm your policy includes enough loss of use coverage? Start a free coverage review at /coverage-review/ and we will check it for you.