Home & Property
Coverage D (Loss of Use)
The homeowners policy section paying for additional living expenses when a covered loss makes the home temporarily uninhabitable.
Last reviewed: May 2026 · Editorial methodology
Definition
Coverage D (also called additional living expenses or ALE) reimburses the policyholder for the reasonable increased cost of living while the home is being repaired or rebuilt after a covered loss. Covered expenses include hotel stays, restaurant meals above the normal grocery budget, laundry costs, pet boarding, and similar costs that exceed what the household would normally spend. Standard Coverage D limits are 20–30% of the Coverage A limit, providing $80,000–$120,000 in ALE for a $400,000 home. Benefits are paid for the shortest of the time needed to repair the home or the policy limit period (often 12–24 months). After major California wildfires, some policyholders exhausted their Coverage D limits while awaiting contractor availability in a market overwhelmed by simultaneous rebuilds. For rental properties, Coverage D is replaced by fair rental value coverage under DP-2 and DP-3 forms, which pays lost rental income rather than the owner's living costs.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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