Show When a fire or other covered peril renders your home not fit to live in, your homeowners insurance policy likely provides Additional Living Expense/Loss of Use coverage that pays for temporary housing and other extra expenses you incur to maintain your standard of living. ALE also reimburses you for other expenses that rise above and beyond what you would normally spend. Along with the temporary housing expense, ALE/Loss of Use pays for additional mileage, utilities, groceries, restaurant bills, animal boarding, temporary storage, and other expenses that you incur because of the damage caused by a covered peril. What Does Additional Living Expense/Loss of Use Cover?Many claimants are confused about what’s reimbursable under Additional Living Expense/Loss of Use and what isn’t. Basically, Additional Living Expense/Loss of Use reimburses insureds for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured’s normal expenses prior to the loss. Here’s a good rule of thumb when tracking ALE/Loss of Use expenses: Ask yourself, “Is this an expense I incurred because of the loss?” If the answer is yes, then you can reasonably submit the expense to your insurance company for reimbursement under ALE/Loss of Use coverage. For example, if a fire destroys your home to an extent that it is not fit to live in, you’ll have to immediately seek shelter for your family. If that requires a hotel stay, the cost for the hotel and meals are reimbursable through ALE/Loss of Use, along with any additional mileage expense. In addition, if your home is not fit to live in for an extended period of time, ALE/Loss of Use covers the added expense to rent a house or apartment. Any increase in the cost of utilities, or connect/disconnect fees at your damaged residence, is covered. For example, If your temporary housing has utilities that you didn’t incur before, that is 100 percent reimbursable. Of course, you would still need to maintain the utilities in your primary home. Anything above and beyond “normal” at your primary home would be covered under Additional Living Expense. Another example is mileage. Say your temporary rental unit is located 15 miles farther from your job than your home. Or your child, who normally takes the bus to school, now needs to be driven there. That’s additional mileage you normally would not incur and therefore, reimbursable through ALE/Loss of Use coverage. Here are some other expenses that might not immediately come to mind, but would be eligible for Additional Living Expense/Loss of Use coverage:
You can see how important it is to be very organized and track your expenses, so you can be reimbursed for these out-of-pocket costs. Keep meticulous records of every expenditure, and save all your receipts. Tip: Get a waterproof, zippered pouch to keep all receipts safely together in one place so they’re at the ready when needed. Added benefit: If you demonstrate you’re organized and methodical in your ALE/Loss of Use documentation, and you present your arguments so that the insurance company can see that you are organized, the insurer will have less ammunition to dispute your claim. For help, download a free copy of our ALE Tracker. What’s Not Covered?Remember, Additional Living Expense/Loss of Use coverage pays for expenses incurred by you that would not have occurred were it not for the fire or other covered peril causing damage to your home. That means you have to continue paying your mortgage as usual—payment is due whether or not you suffered a loss. This normal expense would not be covered under ALE/Loss of Use. Also not allowed under ALE/Loss of Use are claims for lost work hours while dealing with claim-related tasks, such as meeting with contractors or shopping for new furniture. Nor should you expect the insurance company to approve restaurant receipts for routine meals, if your temporary home includes a furnished and functioning kitchen. Baseline BasicsThe key to a seamless Additional Living Expense/Loss of Use claim is to establish your baselines: What did you typically spend on groceries, restaurants, mileage, utilities, etc., before the loss, and what do you need to spend now to maintain your household’s standard of living? Because of the many subtleties and differences between policies, it’s important to understand if the coverage you have is limited by time—often 12 or 24 months—or a monetary amount, commonly capped at 15-20 percent of the dwelling coverage amount. You should understand your insurance policy’s limits from the outset. Other SuggestionsIf you need long-term temporary housing, corporate apartments—fully furnished and equipped dwellings for extended temporary stays—might be a suitable and convenient housing solution. Search online for suitable offerings in your area. You might be able to get a lump-sum ALE/Loss of Use payment up front. Ask your agent or adjuster about this. Four Ways to Ensure Maximum Additional Living Expense/Loss of Use Benefits
Contact Miller Public Adjusters to learn more about how we can help you recover the full amount of your Additional Living Expense/Loss of Use claim settlement and ensure you receive all you’re entitled to under the provisions of your property insurance policy. Miller Public Adjusters proudly serves policyholders
in Call us 24 hours a day at (866)
443-5167 to schedule an appointment or Thank you for visiting us. My name is David Miller, and I know what it means to have to fight with your insurance carrier just to get fair payment for your property damage claim. My family suffered a total loss house fire that took nearly two very stressful years to settle. Since, I combined my experience in construction with my expertise in contract language to create Miller Public Adjusters. We work exclusively for policyholders. Please feel free to comment, ask questions, and let us know how we can help. What can be claimed for ale?ALE coverage is included in most homeowners or renter's insurance policies. This type of insurance covers expenses such as food and the cost of staying at a hotel until the primary dwelling is inhabitable.
Which coverage provides additional living expenses?Additional living expense coverage is a standard part of most homeowners, condo and renters insurance policies. It helps pay for increased costs you incur if you are temporarily unable to live in your home due to a covered loss.
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