Most homeowners can tell you their deductible. Many can tell you their liability limit. Almost nobody knows their ALE limit — until the moment they desperately need it.
ALE stands for Additional Living Expenses. It's the part of your home insurance policy that covers the extra costs you incur when your home becomes uninhabitable after a covered loss — things like hotel bills, restaurant meals, storage fees, and pet boarding.
It sounds like a nice-to-have. In reality, it can be the difference between a manageable crisis and a financial catastrophe.
What ALE Covers
When a covered event (fire, major water damage, etc.) makes your home unlivable, ALE kicks in to cover the difference between your normal living costs and your temporary living costs. Specifically:
- Temporary accommodation — hotel, short-term rental, or furnished apartment
- Meals — restaurant costs above your normal grocery spending
- Storage — moving and storing your belongings during repairs
- Pet boarding — if your accommodation doesn't allow pets
- Laundry — if you lose access to laundry facilities
- Transportation — extra commuting costs due to your temporary location
Important: ALE only covers the additional cost above your normal spending. If you normally spend $300/month on groceries and now spend $800/month on restaurants, ALE covers the $500 difference — not the full $800.
What ALE Does NOT Cover
- Losses caused by events not covered in your policy (earthquake, overland flood without endorsement)
- Costs beyond your policy's ALE limit or time limit
- Mortgage payments or property taxes on your damaged home
- Costs that aren't "additional" — your normal fixed expenses continue
Why Your ALE Limit Matters More Than You Think
ALE is typically expressed either as a percentage of your property coverage (commonly 20–30%) or as a fixed dollar amount. The problem? Most standard policies cap ALE at amounts that were designed for 2010 costs.
Consider a realistic scenario: your home sustains major water damage. Repairs take 6 months. In a Canadian city, 6 months in a furnished 2-bedroom rental runs $12,000–$24,000 — before food, storage, and other extras. If your ALE limit is $10,000 total, you're covering the rest yourself.
| Scenario | Estimated 6-month ALE cost |
|---|---|
| Extended hotel (major city) | $15,000–$30,000 |
| Short-term furnished rental | $10,000–$20,000 |
| Rental + food + storage + extras | $18,000–$36,000 |
| Typical low ALE policy cap | $5,000–$15,000 |
Estimates based on average Canadian city costs, 2024–2025.
The Real-World Cost of a Low ALE Limit
In 2024, a sewer backup in a Montreal neighbourhood forced one family out of their home for 6 months. Their ALE coverage was capped at $1,000. With three children and two pets, the gap between what insurance covered and what they actually spent was over $20,000 — paid out of pocket, out of savings, and partially out of debt.
This is not an extreme case. It's one of the most common financial shocks homeowners face after a major claim.
How to Check and Improve Your ALE Coverage
Step 1: Find your ALE limit. Look at your policy declarations page (the summary page). Find the line for "Additional Living Expenses," "Living Costs," or "Section D — Frais de subsistance" (in Quebec). The limit is either a dollar amount or a percentage of your building coverage.
Step 2: Calculate whether it's enough. Estimate 6 months of temporary housing in your city, plus meals, storage, and extras. Compare that to your limit.
Step 3: Ask about upgrading. Most insurers allow you to increase your ALE limit for a modest premium increase — often $50–$150/year for significantly higher coverage. It's worth asking.
ALE in Quebec vs. Other Provinces
In Quebec, ALE coverage is referred to as "frais de subsistance supplémentaires" and is typically covered under Section D of your policy. Quebec policies also include a separate provision for mass evacuation orders (ordre d'évacuation) — usually limited to 30 days by default, but extendable through endorsement.
Outside Quebec, policies generally follow similar structures but limits and default coverage periods vary by insurer and province. Ontario and BC policies sometimes offer higher default ALE limits given higher local cost-of-living.
CoverCheck's free check-up benchmarks your coverage against real market data — including whether your ALE limit makes sense for your city and profile.
Check my coverage — freeData presented is indicative. For an accurate assessment of your ALE coverage, consult your policy document or a licensed broker.