What does 'Additional Living Expenses' coverage provide?

'Additional Living Expenses' coverage is designed to help policyholders manage the increased costs of living when their home becomes temporarily uninhabitable due to a covered event, such as a fire, flood, or other disasters that result in loss. This type of coverage typically includes expenses like hotel bills, rental costs for temporary housing, and other essential living expenses that exceed the policyholder's normal living costs while repairs or rebuilding are taking place.

The focus of this coverage is to ensure that individuals or families can maintain their standard of living during a challenging time, rather than only covering the cost of the physical property or home improvements. This ensures that policyholders do not experience undue financial strain as a result of circumstances beyond their control.