Additional Living Expenses or “ALE”
I get a lot of questions about what is covered as additional living expenses or “ALE.” ALE covers most things that you have to pay for because your home is unlivable.
MILEAGE: If you are out of your home and having to travel an 30 additional miles to/from work, the vast majority of homeowners insurance policy’s ALE will cover these additional expenses. So keep track of those miles and submit them to your carrier. They generally reiumburse at the current published IRS reimbursement rate.
DRY CLEANING/LAUNDRY: If your alternative living conditions don’t have a washer and dryer and you have to get clothing dry cleaned, ALE should cover those costs.
EXTRA CHILD CARE: ALE should also cover alternative child care. For example, if you regularly care for your children in your home, but your home is uninhabitable, especially for kids, then ALE should cover the cost of day care. Also, if your temporary living situation is too far from your regular child care and you have to find a second caregiver, then ALE covers you.
UTILITIES: If you are staying in a house or apartment where you must pay for all or a portion of the utilities, then those costs should be reimbursed under your ALE coverage. These expenses should be covered even if you are still paying the utility bills for your home.
These are just some of the examples of additional expenses that homeowners incur when they are forced out of heir homes. Make sure to review all of the extra costs you have to see if they should be reimbursed. Insurance companies should tell you this, but they don’t.
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What about meals? We olnly had a small fridge & microwave in our hotel room. How much will my insurance company give me for all the meals we had to eat out?
That’s a great example! Your ALE policy should cover the additional cost of eating out as compared to what you would normally incur for meals at home.