Key takeaways
- Loss of use (ALE) helps pay for a hotel and extra living costs if a covered event makes your home unlivable.
- It pays the difference between your normal costs and temporary ones — not your whole bill.
- It applies only after a covered loss, not voluntary moves or excluded causes.
- It's capped — usually a percentage of your coverage, sometimes with a time limit.
- Loss of use covers extra living costs when your home is unlivable after a covered loss.
- It pays hotel/rental plus the added cost of meals and living.
- Only a covered loss triggers it.
- Check your limit and any time cap.
What is loss of use coverage?
Loss of use coverage — sometimes called additional living expenses (ALE) — helps pay the extra costs of living elsewhere if a covered event makes your home unlivable. Think of a fire that forces you out during repairs: loss of use can help cover a hotel or short-term rental and the added cost of meals and other living expenses above what you normally spend.
It is included in most renters and homeowners policies, and it is the coverage people forget about until they suddenly need somewhere to stay. It pays the difference between your normal costs and your temporary ones — not your entire bill.
It only applies after a covered loss
The key condition: the event that displaces you must be a covered loss under your policy. A fire or a covered water event that makes the home uninhabitable can trigger it; a voluntary remodel or an excluded cause (like flooding without a flood policy) will not. This is why understanding your policy's covered perils matters.
Limits and time caps
Loss of use is not unlimited. It is usually a percentage of your dwelling or personal property coverage, and many policies also cap the length of time it pays. For a Las Vegas renter or homeowner, it is worth knowing your limit before an emergency. Related: personal property and liability coverage.
Frequently asked questions
What does loss of use coverage pay for?
It helps pay the extra costs of living elsewhere if a covered event makes your home unlivable — a hotel or rental, and the difference in meals and other living expenses above your normal spending — up to your limits and time caps.
When does loss of use coverage apply?
Only after a covered loss makes your home uninhabitable — for example, a fire that requires repairs you can't live through. It does not apply to voluntary moves or losses your policy excludes.
Is there a limit on loss of use coverage?
Yes. It's typically a percentage of your dwelling or personal property coverage, and some policies also cap how long it pays. Check your policy for the exact limit and any time cap.
Does renters insurance include loss of use?
Most renters policies include loss of use (sometimes called additional living expenses), which can help pay for temporary housing if a covered event makes your Las Vegas rental unlivable.
Not sure what your policy actually covers?
Request a quick coverage review with a local Las Vegas agency — we'll walk through your limits and gaps, no pressure. Coverage subject to policy terms, underwriting, and carrier availability.
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