When catastrophic storm damage, fires or other major events render a property in need of repairs, homeowners insurance can pay for the work on the home. Insurance can pay to repair the primary damage caused by the covered event and any secondary damage caused by the primary damage, such as ceiling collapses caused by a storm-damaged roof.
Most policies also include displacement coverage that can pay for a short-term apartment or a stay in a long-term motel while work is underway at the property. Homeowners can use their coverage to pay for their housing costs until they can return to their homes.
Many policies also include supplemental coverage for additional living expenses (ALEs). Those temporarily unable to use their primary residences may need help quantifying their ALEs and filing a claim for appropriate coverage.
What may constitute an ALE?
Any expenses incurred due to living in a rental property and losing access to a residence could qualify as an ALE. Frequently, people ask for compensation for takeout meals and minimal-prep groceries, as hotels and motels may not have fully functional kitchens.
Other common ALEs include:
- Pet sitting/kenneling costs
- Laundry or dry cleaning costs
- Storage fees for property moved out of the home during work
- Transportation expenses
The language in the policy, the damage to the property and the needs of the policyholder and their immediate family members influence what ALEs are covered expenses.
The larger a claim becomes, the harder it may be to negotiate with insurance companies and optimize coverage. Partnering with an experienced residential property insurance claims attorney can help policyholders secure the support they paid for and deserve.