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When a hurricane, fire, or other disaster makes your Florida home uninhabitable, you’re suddenly facing hotel bills, restaurant meals, and countless other expenses on top of the stress of property damage. The good news is that your homeowners insurance likely includes loss of use coverage—also called Additional Living Expenses (ALE)—to help cover these costs.
This guide explains everything you need to know about filing a loss of use insurance claim in Florida, including what’s covered, how to maximize your claim, and common pitfalls to avoid.
What is Loss of Use / Additional Living Expenses Coverage?
Loss of use coverage (Coverage D on most homeowners policies) pays for the additional costs you incur to maintain your normal standard of living when your home is uninhabitable due to a covered loss. This coverage is typically included in Florida homeowners insurance policies.
The Key Concept: “Additional” Expenses
The important word is “additional.” ALE covers the difference between your normal living expenses and what you’re paying while displaced. For example:
- If your monthly mortgage payment is $2,000 and your temporary rental is $3,500, ALE may cover the $1,500 difference
- If you normally spend $600/month on groceries but now spend $1,200 on restaurant meals, ALE may cover the $600 increase
- If your utility bills stop because you’re not living at home, that savings is subtracted from your claim
What Does ALE Coverage Pay For?
Typically Covered Expenses
- Temporary housing: Hotels, short-term rentals, or apartment leases
- Increased food costs: Restaurant meals and groceries above your normal spending
- Transportation: Additional mileage or commuting costs if your temporary location is farther from work/school
- Storage fees: Costs to store furniture and belongings
- Pet boarding or deposits: If your temporary housing requires pet arrangements
- Laundry and cleaning: If you can’t do laundry at your temporary location
- Moving expenses: Costs to move into and out of temporary housing
What ALE Usually Doesn’t Cover
- Your regular mortgage or rent payments (you’d be paying these anyway)
- Normal utility costs you were already paying
- Expenses that don’t exceed your normal living costs
- Upgrades or luxury accommodations beyond reasonable necessity
- Expenses after your home becomes habitable again
Understanding Your ALE Coverage Limits
Most Florida homeowners policies set ALE coverage as a percentage of your dwelling coverage (Coverage A). Common limits include:
Dwelling Coverage | ALE at 20% | ALE at 30% |
|---|---|---|
$200,000 | $40,000 | $60,000 |
$350,000 | $70,000 | $105,000 |
$500,000 | $100,000 | $150,000 |
Some policies also include time limits (e.g., 12 or 24 months) for ALE coverage regardless of the dollar limit.
How to File a Loss of Use Insurance Claim in Florida
Step 1: Confirm Your Home is Uninhabitable
ALE coverage kicks in when your home is not fit to live in due to a covered loss. This could mean:
- Structural damage making the home unsafe
- No running water or electricity
- Mold or other health hazards
- Government order to evacuate (civil authority coverage)
- Major repairs in progress making the home unlivable
Step 2: Notify Your Insurance Company
Contact your insurer as soon as you know you’ll need temporary housing. Ask specifically about ALE coverage limits, documentation requirements, and any pre-approval needed for expenses.
Step 3: Keep Detailed Records of All Expenses
💡 Pro Tip: Create a dedicated folder (physical and digital) for all ALE-related receipts. Save everything—you may be surprised what qualifies for reimbursement.
For each expense, document:
- Date of expense
- What was purchased/paid for
- Amount paid
- Receipt or proof of payment
- How it relates to displacement (e.g., “hotel because home uninhabitable”)
Step 4: Track Your Normal Living Expenses
To calculate your “additional” expenses, you’ll need to show what you normally spend. Gather:
- Previous utility bills
- Typical grocery/food spending
- Normal commuting costs
- Any other regular expenses that may change during displacement
Step 5: Submit Claims Regularly
Don’t wait until you return home to submit ALE claims. Submit expenses weekly or monthly to maintain cash flow and avoid overwhelming documentation at the end.
Common Issues with Loss of Use Claims
Insurer Disputes “Uninhabitable” Status
Insurance companies may argue your home is livable even with damage. Document why the home cannot be safely occupied—photos, contractor statements, health department notices, etc.
Coverage Runs Out Before Repairs Complete
If repairs take longer than expected, you may exhaust your ALE limits. Keep your insurer informed about repair delays and consider asking for coverage extensions.
Disputes Over “Reasonable” Expenses
Insurers may challenge expenses they consider unreasonable. Generally, you’re entitled to maintain your normal standard of living—not upgrade it. A family of four doesn’t need a luxury penthouse, but they also shouldn’t be forced into a studio apartment.
Frequently Asked Questions
Can I stay with family instead of a hotel and still claim ALE?
Yes, but you can only claim actual expenses. If you’re paying family members rent or compensating them for increased utility bills, document it. You can’t claim what you’re not actually spending.
Does ALE cover my mortgage while I’m displaced?
Not directly. You’re still responsible for your mortgage. ALE covers the additional cost of temporary housing beyond what you’d normally pay for housing.
How long can I receive ALE benefits?
Until your home is repaired and habitable again, or until you exhaust your policy limits—whichever comes first. Some policies have specific time limits (12-24 months).
What if my insurer denies my ALE claim?
Request a written explanation, review your policy carefully, and consider consulting with a property damage attorney. Many ALE denials are based on coverage interpretations that can be challenged.
Get Help with Your Florida Loss of Use Claim
Being displaced from your home is stressful enough without fighting your insurance company over loss of use coverage. At Krapf Legal, we help Florida homeowners understand their rights and maximize their ALE claims.
If your loss of use insurance claim in Florida has been denied, underpaid, or if you’re struggling to get reimbursement for legitimate expenses, contact us. Our experienced property damage attorneys will review your policy and fight for the coverage you deserve.
Contact Krapf Legal today for a free consultation. Let us help you navigate your loss of use claim and get back on your feet.
