2.10 - Additional Living Expenses

Course Summary: Remember to claim additional living expenses

As discussed in section 1.2 of the Insurance Basics section, additional living expenses (ALE) fall under Coverage D within homeowners insurance policies. Typically ALE are uncommon and often overlooked throughout the insurance process. However, you should be entitled to claiming these additional funds since most insurance policies cover them. Below is a quick review of the different types of ALE you should consider claiming from your insurance company.

1) Types of Additional Living Expenses

​Lodging

If you need to stay in a hotel/motel we suggest that you look for an apartment that is already furnished. If it isn’t, then call a furniture rental facility to accommodate your needs. The full cost associated with lodging is paid for 100% and you should ask your adjuster for emergency advance monies. Property managers will most likely want a security escrow deposit and a couple of months in advance before gaining entry to the apartment.

If you own pets and they need to be displaced, then save the receipts from the kennel for housing as this will also be covered.

Clothing and Medical Supplies

Clothing and medical supply advanced monies are normally issued under Coverage C (Personal Property-Contents Limit of Liability) until an agreed price is reached in your settlement. Save all receipts and arrange their order by day, month and year when making copies.

Food

Remember that this coverage is for Coverage D (Additional Living Expenses).

Example: Say you have a family of five and you are displaced from your house. Your normal monthly grocery bill is $1,400.00. Because you are displaced and cannot start cooking for yourself immediately, you must purchase food from fast food establishments, diners, etc. The cost associated for eating out was $1,050.00 for seven (7) days. Then you should break this down on a daily basis to determine the ALE food expense.

Example:

Normal Family Food Expense = $1,400 divided by 30 days = $46.67 per day.

However, the amount spent on food while displaced from your home for 7 days may be $1,050. Divide that by 7 days = $150.00 per day.

We then take the difference ($150.00-$46.67 = $103.33) and multiple that by 7 days, which would equal $723.31 which the insurance company would pay for based on your Coverage D, Additional Living Expenses, portion of your policy.

Gasoline/

You can try to ask for money associated with increasing your gasoline usage if your temporary housing creates further travel time for work (i.e. commuting to work or longer drive to schools for dropping off/picking up children).