At AFI Insurance in Denver, CO, we take pride in helping our homeowner clients understand the excellent coverages we offer. Additional living expense coverage comes standard when you purchase a homeowners insurance policy. It is beneficial because it pays for the extra cost (beyond your everyday living expenses) that impacts your family if you are unable to live in your home after a covered loss.
For instance, when a fire or tornado causes damage to your home and makes it uninhabitable, you incur increased expenses due to having to relocate while your home is repaired. So, the additional living expense (ALE) coverage is available to help with costs for extra expenses beyond your typical expenses while you are not able to live in your home. That cost could be for restaurant meals or hotel stays.
Additional Living Expense Covers, What?
Additional living expenses apply when your home is damaged and uninhabitable due to a covered peril listed on your homeowner’s policy.
Some of the most common perils (reasons for your loss) covered on homeowner’s policies include losses due to:
- Smoke and fire
- Tornado and other windstorms
- Falling objects
- Vandalism
- Explosions
- Water damage due to busted pipes
- The weight of ice, snow, or sleet
Common expenses reimbursed to you under the additional living expense coverage can include, but are not limited to:
- Temporary rentals or hotel fees
- Restaurant expenses
- The cost associated with boarding a pet
What is the coverage limit for ALE?
Your homeowner’s policy comes with a specific amount of coverage, which is the limit your policy will pay for your extra living expenses. Usually, it is a percentage of the coverage value of the policy you purchased and is only available for a set amount of time.
Get in touch with us today!
You may be a client who has questions about your homeowner policy, or you may be someone who is shopping around and looking for an excellent insurance solution for your home and to protect your family. Either way, we are here to help. Contact us today at AFI Insurance in Denver, CO, or schedule an appointment at (303)433-8888.
We look forward to earning your business.
