ALE for Landlords: How Fair Rental Value Coverage Works

Landlords get the Loss of Use conversation backwards more often than any other group. They assume their policy houses the displaced tenant. It doesn't — it protects their rent, which is a different (and, for the landlord, more relevant) thing. Garr: if you've worked a rental-property loss, the split between landlord and tenant coverage in a real case would clarify this.

Two sides of Loss of Use

Loss of Use splits by who occupies the home:

• Owner-occupant → Additional Living Expenses (ALE): the extra cost of living elsewhere.
• Landlord → Fair Rental Value: the lost rental income while a covered loss makes the unit uninhabitable.

So a landlord doesn't file for ALE — they claim Fair Rental Value to keep income flowing during repairs. The displaced tenant claims their own renters policy for housing.

What Fair Rental Value covers

It reimburses the rent you'd have collected during the uninhabitable period, up to the policy limit, minus expenses that stop (some utilities, for instance). Like ALE, it runs until the unit is repaired or the limit is reached, and it depends on the loss being a covered peril.

Where on-site housing fits

For a landlord with a displaced tenant they want to retain, or a multi-unit property where keeping people housed on-site matters, an on-site RV can bridge the gap during repairs — the tenant's renters coverage typically funds it the same way it would a hotel. If you manage rental property and want to talk through a specific loss, tell us on the request page or start with the ALE housing guide.