What Are Additional Living Expenses in RI (ALE)?
Additional Living Expenses in RI (ALE) is a type of coverage within one’s homeowner’s insurance policy that covers any additional costs needed for the resident of the home that has incurred due to any sort of peril. This basically means that it is coverage for when you have to leave your home due to damage and you have to make other living accommodations; your insurance will cover almost anything that you must pay out of pocket for. This type of coverage is usually part of most homeowner’s insurance policies. This part of the policy will cover various things such as temporary housing (like a hotel or Airbnb) and food until the property where the damage has occurred becomes safe enough to live in.
How Does Additional Living Expenses Work?
The purpose of having Additional Living Expenses in RI (ALE) as part of your policy is so that it can protect you and your family financially while your home is repaired due to any sort of damage that leaves your property uninhabitable. It is important to have coverage for ALE as it can cover a variety of things. For example, if you are renting out your property and there is an accident that causes damage in which your tenant cannot stay on the premises anymore; you will be covered for the loss of rent/loss of income due to your tenant not being able to pay while not living in your property.
How Are Additional Living Expenses Calculated in RI?
The way that ALE is calculated is by setting a cap on the home insurance policy to a portion of the dwelling coverage which is around 20% and then a time limit is set for a certain amount of time and that is how much money you will have in Additional Living Expenses. So let’s say that your home is insured for up to $400,000 and your insurance company sets an 8-month time limit on your Additional Living Expenses coverage, this means that you will get $80,000 (at 20% dwelling coverage) to spend on your living expenses during that time.
What Else Can Be Covered?
Additional Living Expenses can cover various day-to-day items or activities that you may need while your home undergoes repairs from any sort of peril.
Additional Living Expenses can include:
- Laundry – Since you will not be at home with your washer and dryer, you will need to pay to have your laundry done.
- Renting Furniture – If you are temporarily relocated to a new home, you will need to cover for any furniture or appliances being put into that home.
- Storage Rental Costs – Some of your items may need to be put in storage while your home or place of residence goes under reconstruction.
- Moving/Displacement Costs – You will need to move out of your home and relocate to a new place for the time being, which can be quite expensive.
- Food – Since you no longer have access to a kitchen (if you’re not staying in a temporary living home that has one), you may need to buy all of the food you eat at restaurants/take out.
Having all of these things covered during a stressful time such as when your home suffers severe damage can be quite relaxing and give you and your family the peace of mind you deserve while you recover from your stressful situation.
Although having this coverage on your homeowner’s insurance policy seems like you are 100% protected when you have a property damage claim in RI, sometimes that is not the case. Hiring a public adjuster is the best way to make sure your insurance company pays you completely for the costs associated with leaving your home temporarily after property damage. As always, consultations are free and our adjusters would be happy to take a look at your policy.