When an evacuation order goes out ahead of a wildfire, Albertans leave home fast and often do not know how long they will be away or what it will cost to stay somewhere else. Additional living expenses coverage in Alberta home insurance is the part of a policy generally designed to help with exactly that gap, covering costs such as hotel stays, meals, and short-term transportation while a home is off-limits. With wildfire season a recurring reality across the province, understanding what this coverage typically involves, and its limits, is worth doing before an evacuation notice arrives rather than during one.
This article explains what additional living expenses coverage is, how it typically works during a wildfire evacuation, what commonly falls inside and outside it, and where Alberta homeowners and tenants are most likely to encounter the term.
What Is Additional Living Expenses Coverage?
Additional living expenses coverage, often shortened to ALE and sometimes called loss of use coverage, is generally a standard part of a home, condo, or tenant policy that is designed to help pay the extra cost of living away from home when it becomes uninhabitable or access is restricted by a civil authority. It is not usually a separate add-on purchase. According to Alberta.ca, homeowners who are evacuated or unable to return home as a result of insured damage are, in certain circumstances, entitled to additional living expenses that can cover hotel bills and meals while repairs happen.
The coverage is generally meant to bridge a temporary gap, not to fund an open-ended relocation. It typically applies for a defined period and up to a stated limit, both of which are set out in the policy wording rather than being open-ended.
How Additional Living Expenses Coverage Works During a Wildfire Evacuation
A wildfire evacuation is one of the clearest examples of when this coverage is designed to respond. When a municipality or provincial authority issues a mandatory evacuation order, policies that include additional living expenses coverage may help with costs incurred simply because a household cannot stay in its own home, even before it is confirmed whether the structure itself sustained direct damage.
The 2024 Jasper wildfire illustrates the scale this can reach. More than 25,000 residents and visitors were evacuated, and the Insurance Bureau of Canada has since estimated total insured damages at roughly $880 million, making it the ninth-costliest insured natural disaster in Canadian history and the costliest wildfire event on record in a Canadian national park. Additional living expenses were among the categories widely claimed by evacuees, alongside destroyed homes, contents, and business interruption losses.
What typically counts as an additional living expense
Costs that commonly fall within this coverage include:
- Temporary accommodation, such as a hotel, motel, or short-term rental.
- Meals, generally limited to the reasonable extra cost of eating out compared with a household's normal grocery spending.
- Short-term transportation, such as extra mileage or a rental vehicle needed because of the evacuation.
- Storage costs for belongings that had to be moved out of a damaged home.
What is generally outside its scope
Additional living expenses coverage is typically not designed to replace lost income, cover the cost of the home itself being rebuilt (that falls under dwelling coverage), or fund ordinary expenses a household would have paid at home anyway, such as a regular mortgage payment. It is also worth noting that additional living expenses coverage is a private insurance benefit tied to a specific policy, separate from any government evacuation support, such as the one-time per-person payments the Alberta government issued to Jasper evacuees in 2024.
Coverage Timelines and Limits
Coverage periods and dollar limits for additional living expenses vary by insurer and by policy, so the numbers below are general ranges rather than a guarantee of what any specific policy provides.
| Detail | What is generally reported |
|---|---|
| Minimum period under an evacuation order | Often around 14 days |
| Typical maximum period | Commonly 14 to 30 days, sometimes longer if direct repair work is ongoing |
| Dollar limit | Often a set percentage of the dwelling coverage amount, or a stated flat limit |
| Trigger | Typically an evacuation order from a civil authority, or a home becoming uninhabitable from insured damage |
This table describes what a policy is generally designed to do; only the wording of an actual policy determines what applies to a specific home. Confirming the exact period and limit with a licensed broker before wildfire season is a practical step, rather than assuming a neighbour's policy matches your own.
Keeping records during an evacuation
The Insurance Bureau of Canada recommends that anyone ordered to evacuate keep receipts for expenses such as lodging, food, and clothing. These records are typically what an insurer reviews when assessing an additional living expenses claim, so a simple habit, such as photographing receipts as they come in, can make the process smoother later.
Benefits of Understanding Additional Living Expenses Coverage
Knowing in advance what additional living expenses coverage generally includes, and roughly how long it lasts, can reduce the financial stress of an unplanned evacuation. It also helps a household make faster, more informed decisions in the moment, such as choosing accommodation appropriate to a coverage period rather than an open-ended one. For homeowners comparing policies, understanding how insurers structure this benefit differently is a useful part of comparing quotes, not just comparing premium totals.
Where You'll Come Across Additional Living Expenses Coverage
Alberta homeowners and tenants typically encounter this coverage, or questions about it, in a few recurring situations:
- Buying a home or signing a lease, when reviewing what a new policy generally includes beyond the dwelling or contents themselves.
- Renewing a policy, particularly after a summer with active regional wildfire activity, when limits or terms may be revisited.
- Receiving an evacuation order, when a household needs to know what costs might be reimbursable and for how long.
- Filing a claim after a wildfire, when a claims representative reviews receipts and confirms what applies under the specific policy.
Talk to a Licensed Broker About Your Policy
Whether a home, condo, or tenant policy includes additional living expenses coverage, and what its specific period and limit are, depends on the insurer and the policy in place. A licensed broker can review a policy's declarations and explain what options exist before wildfire season puts them to the test. If you are comparing home insurance in Alberta, you can start a home insurance quote with MyBrokers.
For more on how Alberta's wildfire risk intersects with home coverage, see our earlier articles on preparing for wildfire season and overland flood insurance in Alberta.