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Family in hotel room after evacuation

Understanding additional living expenses insurance

Additional living expenses can help cover your increased cost of living when you’re unable to stay at your residence due to a loss covered by your policy.

This coverage is offered through property insurance policies such as homeowner insurance, condo insurance and tenant insurance.

What Does Additional Living Expenses Cover?

Common covered expenses include:

  • Temporary accommodation, such as short-term rentals or hotels.
  • Meals, such as eating out if your temporary accommodation doesn’t have a kitchen.
  • Kennels, if your pet is not permitted at your temporary accommodation.
  • Travel, such as increased mileage.
  • Storage units, if you need to temporarily relocate your belongings.

When Can I Make an Additional Living Expenses Claim?

When your property is damaged
Events like fire, smoke, flooding or sewer backups* can significantly damage your home. Additional living expenses will cover your extra living costs if you must temporarily relocate while your home is being repaired or rebuilt.

When access to your property is prohibited
You may be temporarily forced from your home even if your property isn’t damaged. Two common types of prohibited access scenarios covered by additional living expenses are:

  • A civil authority has ordered a mass evacuation, such as in response to a wildfire or flood.
  • You are unable to safely return home because of damaged neighbouring properties.

* Note: In the event of flood or wastewater damage, additional living expenses are only available if you have purchased overland water and sewer backup endorsements, respectively.

How Much Coverage Does Additional Living Expenses Offer?

Insurers will reimburse the difference between your extra living costs and your typical living expenses up to your policy limit.

Keep all receipts for your extra living costs while displaced. This will assist with your additional living expenses claim.

How Long Will I Receive Additional Living Expenses Coverage?

This coverage typically continues until one of the following scenarios occurs:

  • You move back into your property.
  • The mandatory evacuation order has been lifted.
  • You’ve reached your policy limit.

Contact an Acera Insurance advisor if you have any questions about additional living expenses coverage.