Floods can be devastating—especially if you don’t have the right resources in place. With guidance from The Flood Insurance Guru, homeowners can better understand the protections available to them. One important yet often overlooked option is Additional Living Expenses (ALE) on a flood insurance policy. But what exactly does this coverage mean, and why is it so important?
What Flood Insurance Doesn’t Cover — And Why ALE Is Essential
What Are Additional Living Expenses?
Additional Living Expenses provide extra funds to pay for temporary housing, rent, utilities, and other necessary costs while your home is being repaired after a flood. This helps ensure you have a safe and comfortable place to stay during the recovery process.
Why Most People Don’t Know About ALE
Many homeowners are unaware of ALE because it is not included in a standard policy from the National Flood Insurance Program (NFIP). While NFIP policies cover building and contents, they do not offer Additional Living Expenses.
However, you still have options to obtain this important coverage.
How to Get Additional Living Expenses on Flood Insurance
1. Choose a Private Market Flood Insurance Policy
Private flood insurance is offered by non-government insurance companies instead of the NFIP, which is federally backed. Most private flood insurance policies include Additional Living Expenses coverage up to $25,000, depending on the provider.
2. Presidential Disaster Declaration Assistance
If your area receives a Presidential Disaster Declaration, federal assistance may become available. One of these resources can include temporary living expense assistance.
Important note:
This aid is sometimes issued as a loan, not a grant, and may only cover up to three months of expenses. Additionally, if the flooding is not severe enough to qualify for a presidential declaration, this assistance will not be available.
Why ALE Coverage Matters
Recent flooding events in Muscle Shoals, Alabama; Birmingham, Alabama; Knoxville, Tennessee; Omaha, Nebraska; Des Moines, Iowa; and Minneapolis, Minnesota have shown just how valuable Additional Living Expenses can be. In areas where flooding occurs but does not trigger a disaster declaration, homeowners without private flood insurance would be left without temporary housing support.
A homeowner in Nebraska recently shared that without ALE in her private flood insurance policy, she wouldn’t have known where to stay while her home was being repaired. Stories like this highlight why it’s essential to understand not only what flood insurance covers but also what it does not cover.
Need Help Understanding This Coverage?
If you have questions about getting Additional Living Expenses or want to learn more about your flood insurance options, please fill out the form below.
