Additional Living Expenses

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What is Additional Living Expense Coverage

Additional Living Expenses/Loss of Use Coverage: This coverage provides for living expenses that would exceed the insured’s normal expenses to maintain a comparable cost of living after a claim has been made. For instance, if Hurricane Laura rendered your home unlivable while repairs were being made, additional living expenses (ALE) coverage may cover a hotel bill for a period of time. There are limits to ALE coverage and there may be time limits as well. Receipts and records rare needed to receive reimbursement from ALE coverage.

The main question to ask is whether the expense was incurred because of Hurricane Laura?  If the answer is yes, it is reasonable for you to seek reimbursement under ALE/Loss of Use coverage for that Hurricane Laura related expense.

For example, if your home is uninhabitable due to the Hurricane Laura wind damage, can you seek reimbursement under your ALE/Loss of Use coverage for the mortgage payment you must continue to make on your damaged or destroyed home? The answer is no, because you must make that mortgage payment whether or not you suffered damage from Hurricane Laura.  However, in this situation, you may seek reimbursement for the cost of renting a home for your family to live while your home being repaired.