After a covered fire loss, the insured's home is uninhabitable. The mortgage is $1,500/month; temporary housing costs $2,500/month. How does Coverage D (Additional Living Expense) calculate what is paid?

COVERAGE D — ADDITIONAL LIVING EXPENSE (ALE): ALE pays the ADDITIONAL cost of living beyond normal expenses, not the total cost. CALCULATION: Normal monthly expenses would include mortgage, utilities, groceries; With displacement: rent temporary housing ($2,500) instead of paying mortgage ($1,500) = $1,000 additional; Also covers: restaurant meals above normal grocery budget; storage of belongings; pet boarding; additional transportation; DURATION: Until home is repaired or ALE limit is exhausted (typically 20-30% of Coverage A; some policies have 12-24 month time limits); ADJUSTER PROCESS: Document pre-loss and post-loss expenses; establish a budget with the insured; review receipts; apply the 'additional expense' standard — not the full temporary housing cost; COMMON DISPUTE: Insured expects full rent payment; adjuster must explain the additional-expense calculation and document the basis.