Additional Living Expenses or ADL coverage pays you money in the event your home or the home you rent is damaged or destroyed and you cannot live there until it is fixed up. The money is there to help with everyday expenses like groceries, rent, mortgage payments, etc. Your house or the house you rent does not have to be destroyed to get this coverage. You may be evacuated due to a fire in the area and you have to go to a motel for a few days or weeks. ADL will help you pay the cost of the hotel and other expenses while you are not able to return home.
While having an emergency account is always a good idea, ADL is there to help out. Talk to your carrier or insurance agent and read your policy to find out what ADL coverage you have.