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What is Loss of Use Coverage?

Updated: Oct 6



Floods can be devastating events, especially when they damage your home or personal items. If your property is severely damaged, your home could become uninhabitable due to flooding, leaving you to seek help at a public shelter. These shelters can be crowded and unsafe. However, there is an insurance coverage option available to help pay for hotels, meals, and other living expenses while you transition back to your home. It is called Loss of Use Coverage, or Additional Living Expense (ALE).



Does an NFIP Policy cover Loss of Use?


The National Flood Insurance Program does not offer additional living expense coverage on their policies. If you have an NFIP policy and your home becomes uninhabitable due to flood damage, overcrowded shelters may not be an option. You may have to get hotel accommodations and eat your meals at public restaurants., These expenses can add up, which is why some consumers opt for a private flood insurance policy.

Does Private Flood Insurance cover Loss of Use?


Yes! If you obtain a private flood insurance policy through FloodPrice, you have the option to add up to $25,000 of additional living expense coverage. At FloodPrice, we do the shopping for you. Our online quoting system scans multiple private carriers who offer additional living expense coverage to make sure you are getting the best option.


How is this listed on a policy from FloodPrice?


If you obtain a private flood insurance policy from FloodPrice, here is what it will look like on the policy form:


Pay Attention to your Policy Documents.

With multiple private carrier options, and the option of a policy from the NFIP, buying flood insurance can be confusing. To make sure you get the coverage you need, it is important to understand what to look for on the various policy forms. Make sure you select Additional Living Expense (ALE) coverage on our online quote system. If you are speaking to one of our customer service representatives, simply indicate that you want ALE coverage. We can tailor-make your policy to get the exact coverage you need for your unique situation. To get started, get a quote online, and make your ALE selection there.



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