What Is Additional Living Expense (ALE) Coverage?

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Additional living expenses (ALE) insurance, also known as loss of use insurance, is a type of coverage that helps pay for the cost of temporary housing and other necessary living expenses if you are unable to live in your home due to a covered loss.

Commonly, ALE includes expenses such as hotel stays, restaurant meals, and storage fees. ALE insurance is typically included as part of a homeowner’s insurance policy, but it can also be added as a separate endorsement. It is designed to cover the additional expenses that you incur while your home is being repaired or rebuilt after a covered loss, such as a fire or natural disaster. The amount of coverage provided by ALE insurance is typically based on a percentage of your homeowner’s insurance policy’s dwelling coverage.  However, check your policy as different insurance companies may have different requirements for ALE coverage.

If you need to make an additional living expenses (ALE) claim, here are the steps you can follow:

  1. Contact your insurance company as soon as possible to report the loss and request ALE coverage. Your insurance company may not advise you of the availability of ALE coverage so be sure to have your policy number and other relevant information handy.
  2. Keep track of all your additional living expenses, such as hotel bills, restaurant receipts, and storage fees. You will need to provide these to your insurance company as proof of your expenses.
  3. Follow any instructions provided by your insurance company for submitting a claim. This may involve filling out a claim form and providing documentation of your losses and expenses.
  4. If you disagree with your insurance company’s decision on your claim, you should document the reasons why you believe that the expense should be covered.

It’s important to note that ALE coverage is typically limited to a certain amount of time, so it’s important to keep track of your expenses and submit them in a timely manner.

Murdock Law, S.C. helps people and businesses with their insurance claims, if you are having a dispute with your insurance company you can contact us at  (844) 744-7529

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