What are additional living expenses?
Additional living expenses, which are otherwise known as A-L-E, or ALE, is a component that’s generally available under most property insurance policies. For example, if you’re displaced from your home as a result of the damage, or while the work is being done to repair your home, the insurance company may be responsible to pay for your living expenses, whether it’s rent, hotel, as well as your additional food expenses. So if you spend $100 a week on groceries and food, but while you’re displaced from your home, it’s costing you $300 a week, that additional $200 may be covered under your policy. Generally, your A-L-E, or ALE, benefits have a cap on them, so they’re going to be limited in most cases to a certain amount, but they’re also something that get overlooked in many cases, and you should definitely seek to recover. It may even include gas, because they’re housing you five miles further from work, you’re doing an extra 10 miles each day. That additional gas price or cost for your car may be compensable. The bottom line is ALE is normally calculated on actual receipts or value, but often the insurance company wants to resolve your claim on the front end. When that happens, you need to make sure you anticipate the potential ALE costs, how long you may be out of your home while the work is being done, so you can recover that in the event that the insurance company is going to want you to sign a release to close out your claim when you’re resolving it.