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What are additional living expenses (ALE) after a weather event?

On Behalf of | Sep 3, 2021 | Insurance

Oklahomans are used to dramatic weather events like those that have recently caused significant damage across the other parts of the United States. Even states like New Jersey and New York – areas unaccustomed to severe storms and tornados – have unfortunately been impacted. Not only does this cost lives and cause untold damage to property, but it can leave people wondering how they will survive in the aftermath. Even people in Oklahoma are frequently unaware of key aspects of their insurance coverage. This is when it is important to be aware of additional living expenses (ALE) and what is covered.

Key facts about ALE

Tornados and severe storms can destroy homes or render them uninhabitable until repairs are done. Insurance will likely cover much of those repairs, but it can also provide for living expenses so the person can stay somewhere else during that time. This is ALE. With ALE, the policy holder can receive compensation for a hotel, a temporary rental, purchasing meals in restaurants and other costs that will accumulate while unable to live at home. These are generally costs the person would not have if the tornado or storm did not happen.

There may be a disagreement as to how much ALE will cover. The policy will likely pay the difference between ALE and the normal living expenses. Still, there might be limits as to what the insurer will pay and the duration for which it is paid. That could clash with how long the person will be out of the home. People who expect to receive more for ALE or are facing challenges with getting the insurance company to pay anything beyond the bare minimum should be protected. If the insurer refuses to pay at all, this will compound the problems the person is facing from the storm. It should be addressed through the proper channels and legal help might be required.

Professional advice may be needed regarding ALE

Many property insurance related disputes between a policy holder and the company are connected to how much will be paid to cover for repairs, rebuilding and other aspects of property damage. However, there can be other disagreements including ALE and what will be paid for as people try to rebuild their lives. Before getting into an endless one on one dispute with the insurer, it may be beneficial to have legal assistance to represent the policy holder and help with policy adherence and maximizing what the person receives. Consulting with those experienced in insurance cases and disputes can provide guidance and advice.