Temporary housing after a home insurance claim: how it works in NJ and NY

What ALE actually is

ALE is part of the "loss of use" section of your policy (Coverage D on most homeowners policies). The standard policy language says the insurer pays for "any necessary increase in living expenses" so your household can keep its "normal standard of living."

That last part matters. If you live in a 4-bedroom house with a yard, you're not supposed to be squeezed into one hotel room for six months. You're entitled to something reasonably close to how you live now.

What it pays for

The extra costs you wouldn't have if you were still home. For most families that means:

• A furnished place to stay: a hotel at first, then a furnished apartment or house for longer repairs
• The extra cost of eating out if you don't have a kitchen
• Extra mileage or commuting if you're farther from work or school
• Pet boarding, laundry, storage and similar costs caused by the move

What it doesn't pay for

ALE only covers the difference. New York's insurance regulator puts it simply: you're covered for the difference between your normal living expenses and the extra ones. So if you normally pay a $3,000 mortgage, that bill doesn't go away, and ALE won't pay it. If your groceries normally cost $800 a month and eating out costs $1,500, ALE covers the extra $700.

Two other things to know: a standard homeowners policy doesn't cover flood damage at all, so it won't pay ALE for a flood either. And flood insurance policies through NFIP generally don't include temporary housing.

How long and how much

Most policies cap ALE at a percentage of your dwelling coverage, commonly 20% to 30%, or at a time limit like 12 months. Some policies pay for as long as repairs reasonably take. Your declarations page will say. If your house is insured for $800,000 at 20%, that's up to $160,000 for living expenses.

If a fire department or other authority orders you out (but your home isn't damaged), the standard policy covers up to two weeks.

Who CRS, ALE Solutions and similar companies are

If you've been searching "CRS temporary housing" or "ALE Solutions," those are housing companies insurance carriers often use to find places for displaced families. They can be fast, especially in the first few days.

Here's what I tell families: you can always ask your adjuster for options that match how you actually live, especially for a longer repair. Comparable bedrooms, your kids' school district, room for your pets, parking, a real kitchen. If what's offered doesn't fit, say so in writing and ask for alternatives. That's what we do for families in New Jersey and New York.

Your rights on timing

In New Jersey, insurers have to acknowledge your claim within 10 working days and, for property claims, pay within 30 calendar days after a properly completed proof of loss, or tell you in writing why not.

In New York, insurers have to acknowledge your claim within 15 business days, accept or reject it within 15 business days of getting your proof of loss and paperwork, and pay within 5 business days of a settlement.

What to do this week

• Call your insurer, open the claim, and ask "What is my loss of use limit?"
• Keep every receipt: hotel, meals, gas, laundry. New Jersey's insurance department says to save all of them.
• Write down what you need: bedrooms, school district, pets, parking, accessibility.
• If repairs will take more than a few weeks, ask your adjuster to approve a furnished home instead of a hotel. It's usually more comfortable and often cheaper for the carrier.
• If FEMA is involved after a disaster: FEMA can't pay for what insurance already covers, but it may help if your ALE runs out or payments are delayed 30 days or more.

If you need a place now

We find furnished homes and apartments for families after fires, floods and other covered losses across New Jersey and New York, including high-value homes, and we work directly with adjusters. Call (201) 241-2792 or send the details below.