ALE Receipts: 3 Kinds to Keep After a Covered Loss

Key takeaways

• Keep every receipt for extra living costs. Your insurer needs them to reimburse you.
• ALE pays the difference between your normal living costs and your temporary costs. It does not replace your mortgage.
• Some policies have dollar or time limits, so ask your adjuster before you book.

On this page

• What are ALE receipts?
• Which 3 kinds of receipts should a family keep?
• Why does the receipt matter as much as the home?
• Who decides what the policy pays?
• My take
• What else do families ask?

ALE receipts for temporary housing are the paperwork that lets an insurer reimburse extra living costs after a covered loss, so keep every one. For displaced families and the adjusters who work with them, there are 3 kinds of costs to track.

I'm Patrick Smith. I started Be Relaxed Corporate Housing in 2013, and I know how a hard transition can stack up fast.

What are ALE receipts?

ALE stands for additional living expenses. Many homeowners policies pay for ALE when you cannot stay in your home after a covered disaster, because you have to move into a hotel or apartment while repairs or a rebuild happen.

The National Association of Insurance Commissioners (NAIC) explains that ALE pays only the difference between your normal living costs and your new temporary costs.

NAIC's consumer article on additional living expenses covers the basics.

Which 3 kinds of receipts should a family keep?

1. Hotel bills. If you stay in a hotel while your home is unlivable, keep every bill.
2. Reasonable restaurant meals. NAIC lists these when you are staying in a hotel room with no kitchen. Keep the receipt.
3. Other extra living costs. These are costs above your normal housing expenses while you cannot live in your home because of the damage.

Keep every receipt for an added cost. Your insurer needs them to pay you back. Put them in date order, and write one line on each: what it was for and what dates it covers. A folder you can hand to an adjuster is easier to work with than a pile in a coat pocket.

Why does the receipt matter as much as the home?

A family can have a safe, livable place and still lose money if the paperwork is thin.

Picture a family of four who moves into a furnished apartment after a kitchen fire. The hotel bill went on a card, the restaurant receipts are in a coat pocket, and the rest is in a phone photo.

Sorting it on day one is the difference between a quick reimbursement and a month of chasing.

Dollar limits and time limits can apply, and they sit apart from what your policy pays to rebuild. Ask about both before you book a home.

Who decides what the policy pays?

Your insurance company and your adjuster decide what your policy covers. We do not. If you need help with a claim or coverage, the NAIC directs people to their state department of insurance.

Ask your adjuster for everything in writing.

My take

I'm a single dad, and I know what a soft landing feels like during a hard transition. A family in this spot is carrying enough already.

So our billing stays at one simple monthly bill, and when a question comes up, the phone gets answered. I can help with the housing line.

The insurance decisions belong to your adjuster.

What else do families ask?

Do I still pay my mortgage while I use ALE?

Usually, yes. NAIC notes that the policy pays the difference in living costs, so your mortgage payment still applies. Confirm your own situation with your lender and your insurer.

Do all policies have limits?

No, but some do. Some policies have a dollar limit, a time limit, or both, and those limits are separate from the money for rebuilding. Ask your adjuster what applies.

Can a family book a furnished home with ALE?

Ask your adjuster what housing they will approve. Then call us at 803-548-4663, and we will tell you what is open and what the bill covers

Related: ALE Housing: What Adjusters Should Confirm Before Placing a Displaced Family and Insurance Temporary Housing in Charlotte: What to Expect After a Fire or Flood.

Sources

• National Association of Insurance Commissioners (NAIC), "What are Additional Living Expenses and How Can Insurance Help?", January 13, 2025. Link

About the author

Patrick Smith is the founder of Be Relaxed Corporate Housing. He started the company in Fort Mill, South Carolina, in 2013. He is a single dad who answers the phone himself.

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