Additional Living Expenses coverage (ALE) helps you maintain your standard of living after a covered loss.
What does Additional Living Expenses mean?
As a standard part of a homeowners’ policy, Additional Living Expenses (ALE) reimburse the insured for the cost of maintaining their standard of living after experiencing a loss. ALE applies to expenses following a covered loss that exceed the insured’s normal expenses prior to the loss.
For example, ALE would cover an insured’s hotel bill while fire damage to the home is being repaired. Here are some other examples of what Additional Living Expenses cover:
- Any extra gas used if it takes longer to get to work from your temporary living quarters
- Any expenses for dining out if you can’t use your kitchen
- Costs related to moving, furniture rental, and storage
- Laundry if you need to use a laundromat
- Any extra utility fees over what you usually pay
It will only cover additional expenses
The operative word here is “additional.” For example, your kitchen is unusable and you need to eat out at times you normally wouldn’t. Once you make a claim, the insurance company will look at what you usually pay for food. From here, they adjust accordingly and then reimburse you for anything additional you needed to spend on eating out. It only applies to that over and above what you usually pay.
How to get the reimbursement
Additional Living Expenses is an incurred payment. In other words, you need to actually have spent the money to be reimbursed. Keep all receipts and canceled checks. You can submit these to your public adjuster as the expenses are incurred. They can submit all proof of additional expenses.
What’s the limit of coverage?
Under homeowners’ forms HO 2, HO 3, HO 4 (tenants’ policy), and HO 5, ALE coverage is equal to 30 percent of the dwelling limit. Under a condominium owner’s policy (HO 6), the limit of ALE is 50 percent of the personal property limit. You’ll find all of your policy’s limits on the declarations page of your policy, which is usually the first or second page.
We can help you!
Robert L. McCormack Public Adjusters has plenty of experience dealing with ALE. We can help to set up your new living arrangements and ensure you maintain your standard of living. We can also assist you with submitting your receipts to the insurance company and make sure you get everything that you’re entitled to. Contact us today by filling out our contact form, or by giving us a call at 508.588.4243.
Check out this article for more information on ALE.