What does additional living expense coverage on homeowners policies aim to provide?

Additional living expense coverage is designed to provide financial support for policyholders whose homes become uninhabitable due to a covered peril, such as a fire or severe weather. This coverage aims to maintain the family's standard of living while they are displaced from their home, allowing them to pay for temporary housing, meals, and other necessary expenses that may arise during this period.

When a home is unlivable, simply finding the cheapest accommodations available won't suffice for most families, as they may require a place that is comparable to their home environment for both comfort and functionality, which is reflected by the aim of this coverage. The nature of additional living expenses is to fill the gap created by the need for temporary housing while ensuring that the family's overall lifestyle is minimally disrupted. Therefore, the focus on maintaining the standard of living is a fundamental purpose of this coverage.