![]() ![]() Most types of living expenses, above and beyond your ordinary living expenses that occur as a result of a covered event, will ordinarily be covered by ALE insurance. What types of expenses are covered under the ALE coverage? For instance, a typical policy provides that your ALE will be covered for a maximum of 1 month.īefore you will be entitled to receive ALE, most policies require your dwelling to be “uninhabitable.” The specific requirement before your ALE coverage kicks in will depend on your specific policy, however, as a general matter, a home that does not have basic utilities like water, heat, or electricity will be considered to be “uninhabitable.” Once your ALE coverage kicks in, any expenses you have outside of those which you would normally incur will be covered to the extent of your policy limits. Additionally, most policies will limit coverage for a certain amount of time. Thus, if your home is insured for a maximum of $100,000, your ALE coverage will total a maximum of $20,000. A typical policy will require your insurer to cover no more than an amount equal to 20% of the insurance value of your home. For example, if your home becomes uninhabitable as a result of the loss, and you must stay in a hotel room for a week, your insurer may be required to reimburse you for some or all of those additional expenses. What is an additional living expenses insurance claim?Īdditional living expenses (ALE) are living expenses incurred as a result of a covered event that go above and beyond what the insured would have spent absent the loss. Generally, ALE are measured as the difference between the insured’s normal living expenses and the extra living expenses incurred due to the insured loss.
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