Understanding Additional Living Expense (ALE) Insurance

Additional Living Expense (ALE) insurance is a key component of most homeowner’s insurance policies. In simple terms, it covers extra living costs you might face if you have to temporarily relocate from your home.

Generally, ALE insurance can make up around 20% of your total home insurance coverage. The good news? Homeowners commonly find ALE provisions in their insurance policies.

What Does ALE Insurance Cover?

The main aim of ALE insurance is to alleviate the burden of unexpected expenses when you can’t be in your home. Here’s how it can support you:

  • Food: If you find yourself dining out more often because your temporary residence lacks a kitchen, ALE can cover the difference in costs.
  • Laundry: Without a washing machine? No worries. ALE can cover external laundry bills.
  • Furniture Rental: If your temporary place doesn’t have the furniture you need, ALE can cover rental costs.
  • Storage Costs: Keeping some belongings in storage? ALE can help with those fees.
  • Moving Expenses: Costs associated with temporary relocation can add up – ALE is there to help.
  • Pet Care: If your pet needs temporary boarding, ALE can cover it.

However, a word of caution: it’s essential to remain prudent with expenses.

Insurance providers will evaluate the costs you claim against what you’d normally spend. Be aware of your coverage limit and ensure that your claims remain within those bounds.

What ALE Doesn’t Cover

While ALE handles additional living expenses, it doesn’t cover damage to personal belongings or parts of your house.

These damages fall under other sections of your insurance, like dwelling, personal property, or liability coverage.

Limits and Understanding Your ALE Coverage

Typically found under the ‘loss of use’ category in insurance policies, ALE coverage is often around 20% of your home insurance.

So, if your home insurance is 400,000 USD, your ALE might be approximately 80,000 USD.

However, if you feel this isn’t sufficient, consider discussing with your insurance provider about adjusting your ALE limit. Some providers even offer unlimited ALE for certain premium clients.

How ALE Works in Real Life

Imagine a fire severely damages your home.

You relocate to a hotel for a few months during repairs, dining at the hotel restaurant and storing undamaged furniture.

As long as your expenses align with your typical lifestyle, you can expect to be reimbursed through ALE. Remember to save all receipts for documentation.

Though some costs might increase (like dining out), others could decrease (like groceries). Insurers will balance these out when considering reimbursement.

Make sure you keep up with regular expenses like mortgages and taxes – ALE won’t cover these.

Specifics on ALE Coverage

To claim ALE, the damage must be from an event your homeowner’s insurance recognizes, like fire or pipe bursts.

For instance, if you’re part of the National Flood Insurance Program, ALE won’t cover flooding-related relocations.

Similarly, many standard homeowner’s policies exclude earthquake damage from ALE. Separate policies or riders may be required.

ALE in Special Circumstances

Even without direct damage, ALE can assist in situations of forced evacuations.

For example, in regions prone to wildfires or other natural emergencies, ALE might cover expenses after a mandated evacuation.

However, if there’s a scheduled power outage that residents know about in advance, ALE likely won’t apply.

Remember to always communicate with your insurance provider and keep track of your expenses, ensuring peace of mind during challenging times.

Need help recovering ALE? Capital Claims Group can help!

Our experienced adjusters at Capital Claims Group can assess your situation, review your policy, and negotiate with your insurance company to help you receive the full ALE benefits you are entitled to.

If your insurance company has denied or underpaid your claim, we can assist you in disputing it, advocating for your rights, and pursuing a fair resolution.

Say goodbye to the hassle of dealing with the insurance company and let Capital Claims Group handle everything for you. Book an appointment online: Book a Call or call us at (954) 874-3563. We pick up the phone!