ALE stands for additional living expense, and it is a type of coverage you can add to your homeowner's insurance policy. This form of coverage is vital if you ever experience a situation with your home that forces you to move out of it for a while. If you have never heard of this, here are three things you should know.
It covers the costs of moving somewhere else
The entire purpose of ALE coverage is to provide you with compensation for the extra costs you will incur if you are forced to vacate your home and live somewhere else for a period of time. If a fire burns your home and you must move out during the cleaning and repairing of the home, you would incur a lot of extra expenses if you had to live in a hotel or rent an apartment. With ALE coverage, your insurance policy would cover these types of costs. Without ALE, you would be required to pay for all these costs yourself, plus you would still have to continue paying your home's mortgage payments, utilities, insurance, and any other expense related to the home that you own.
The policy has limits
The second thing you will need to understand is that ALE coverage has limits. This means it will not cover your additional living costs forever. It will only cover them for a limited time, and only if they are necessary. Additionally, they will not cover expenses if you suddenly upgrade from a normal lifestyle to a lavish lifestyle. You must try to continue living the exact same lifestyle in order for the expenses to be covered.
The types of things it will cover
In addition to paying for your hotel bill or apartment rental, ALE coverage will also pay for other things, such as food and meals, rental furniture and supplies, and incidentals, such as replacing your toothbrush and blow dryer. If you end up forced out of your home, your home insurance agent will give you the name of the adjuster who will handle your ALE coverage, and this person will help you learn exactly what your policy covers during this time.
If you are interested in adding ALE coverage to your policy, or if you would like to get a quote for home insurance through a different company than you currently use, contact a home insurance company today such as Phillip R Davis Insurance.