Loss of Use / Additional Living Expenses Calculator
Estimates the reimbursable Additional Living Expenses (ALE) you may claim when a covered loss forces you out of your home. ALE covers only the increase in your normal living costs during the displacement period.
Formula
Step 1 – Daily Normal Expenses:
Normal Daily = (Normal Housing + Normal Food + Normal Transport + Normal Other) ÷ 30.4375
Step 2 – Daily Actual Expenses:
Actual Daily = (Actual Housing + Actual Food + Actual Transport + Actual Other) ÷ 30.4375
Step 3 – Daily Savings Credit:
Savings Daily = Mortgage/Rent Savings ÷ 30.4375
Step 4 – Net Daily ALE Increase:
ALE Daily = max(0, Actual Daily − Normal Daily + Savings Daily)
Step 5 – Total ALE for Displacement Period:
Total ALE = ALE Daily × Displacement Days
Step 6 – Reimbursable ALE (capped by policy):
Reimbursable ALE = min(Total ALE, Policy ALE Limit)
Assumptions & References
- ALE (also called "Loss of Use") covers only the increase in living costs above your normal pre-loss expenses — not the full cost of temporary housing.
- References: ISO Homeowners Policy Form HO-3 (2000 ed.), Section I – Coverage D; NAIC Homeowners Insurance Guide; IRC § 123 (exclusion for insurance proceeds for living expenses); IRMI Loss of Use definition.