What does 'loss of use' / 'additional living expense' coverage in a homeowners policy provide?

Loss of use coverage (Coverage D), often called additional living expense (ALE), reimburses the insured for the increase in living costs they incur when their home becomes uninhabitable because of a covered loss — for example, the cost of a hotel or rental, restaurant meals, and other expenses above their normal living costs, during the reasonable time needed to repair or rebuild. It may also cover lost rental income if part of the home was rented out. It does not pay the mortgage or the property's value. Understanding loss-of-use/ALE coverage as protection for the extra costs of being displaced is standard homeowners content frequently tested on the exam.