What are Additional Living Expenses?
Additional living expenses are known as ALE. This coverage pays for any amount you pay in addition to or on top of your normal bills as the result of a covered peril. An example of ALE coverage is if you would normally spend $100.00 on groceries, but as a result of the hurricane you now have to spend $150.00, your insurance will cover and reimburse you for that additional $50 cost. You can ask in writing for advances of money in ALE or contents coverages. Either way, ALWAYS track your expenses.
If your home is uninhabitable, send daily, written emails to your adjuster/insurer asking for additional living expense money. You can ask for an advance of $5K, $10K from either your “additional living expenses” or “contents” coverages. Keep your receipts and submit them weekly for reimbursement.
I had a property loss, where can I go?
If you are not able to pay for a hotel, and you aren’t able to find another spot to stay, the Red Cross will give you a voucher and some pocket money to hold you over. If you are in a financial bind but have insurance, you can notify your agent, who can cut an emergency draw to hold you over. Your insurance can pay your friends or family for housing you. The money will be released out of your additional living expenses coverage. Your insurance policy is unique, so limits and how they are applied should be reviewed by an expert.
You will have to keep track of the money spent on food and hotels. You should do this by collecting receipts. If you can't support how you spent the draw, they may not be covered or the money may be deducted from another coverage. The latter outcome is not good because you are wasting potential by not separating your coverage limits properly. Any cost you spend out of the ordinary has a potential of being covered by your insurance. Including but not limited to using an Uber or Lyft, babysitters, veterinarians to kenneling a pet, mileage for miles driven, and virtually any expense that is not normal for your day to day can be covered by your insurance. There are other coverages in your policy that can open opportunities for you. Contact us to get in touch with an insurance expert that can walk you through this journey.
Why should you not trust any recommended vendor or service from your insurance?
Your insurer may place you with a temporary housing vendor or a cleaning service. A vendor is similar to an agent of your insurance company with intentions of covering their employer’s interest, which gets your insurance a good deal. You may get something with less value than you are potentially eligible for. All services should be avoided because of the negative effective effects they may cause. Believe it or not these companies also keep costs low for your insurer which is not what you have to subject yourself to. They often seem like your only option available, but there are more and better quality options available. Contact us to get in touch with an insurance expert that can walk you through this journey.
Will my insurance pay for a hotel?
Most insurance policies will cover the hotel costs, but every policy is different and should be reviewed. Your policy has different bank accounts available for every coverage. In this case, most policies have Additional Living Expenses coverage to pull funding from to get you a hotel. You may be available to more than you realize or are offered. We have the ability to maximize your insurance claim’s potential to provide the best situation possible for you. Contact us to get in touch with an insurance expert that can walk you through this journey.
What kind of rental am I entitled to?
You're entitled to the equivalence of what you had. If you had a three bedroom home with a fenced yard and a pool, that’s what you qualify for. You could have a three-story oceanfront property. Your premium pays to put you in a place of equal value and to put you to the place that you were before the loss. If you can’t find exactly what you had, you can spread out the facilities. For example, you might not find a house with a pool. In that case, you can join a club with a pool. Use your discretion based on the available limit your policy covers. This means you may need to budget based on the time you think you’ll be out of your house. Contact us to get in touch with an insurance expert that can walk you through this journey.
Will my insurance pay me back for eating out?
Yes, your insurer will pay for food if you eat out while recovering from a loss. Your insurer will pay you what you prove you spent while eating out, so keep your receipts. At one point, you will be asked what your weekly food costs are while eating out because of the loss. Your insurer will deduct your normal food costs prior to the loss event. If you buy groceries only while out of the property, your insurer won’t have to pay you back. The insurer will claim you had to buy groceries before the loss anyway. There may be more ways to find funding. Your policy may offer more categories to pull money from. Contact us to get in touch with an insurance expert that can walk you through this journey.
Will my insurance cover a loss of income from a loss?
Yes, your insurance will cover any form of lost income resulting from a loss. If you work at home, and you are displaced from a loss, you may be owed compensation. If you lost a tenant as a result of a loss, then you may be compensated. Every policy is unique on exactly what you can recover. An expert will be able to maximize your claim’s potential so you receive the most amount of benefits from the premium that you pay. Contact us to get in touch with an insurance expert that can walk you through this journey.