TMIB Blog

Did YOU Know?

did you know color arrows websiteWhat is “Loss of Use” and “Additional Living Expenses” on my Homeowner’s Insurance policy?

 While we might not experience nature’s fury as frequently as other parts of the country, Southern California does occasionally have to contend with some pretty hellacious natural disasters. From wildfires to mudslides to earthquakes, crises can be unpredictable, forcing you to flee your home and seek shelter for an unknown period of time.

 How will you pay for a hotel room if you are evacuated? How will you afford a rental dwelling if your home is damaged during the disaster?

 This is where “Loss of Use” or “Additional Living Expenses” (ALE) comes into play. This provision in your homeowner’s insurance policy can help you cope with the cost of living away from your home after a disaster or accident. This coverage typically pays for “extra” expenses incurred as a result of a covered insurance claim.  Importantly, ALE only covers reasonable expenses that help you maintain your current standard of living.

 Insurance policies vary greatly.  There can be a set dollar amount with a set amount of time for this coverage or an unlimited amount and/or unlimited timeframe for coverage.

 Most earthquake policies include loss of use and typically have very specific limits available. In some cases you can decide how much coverage you want (up to a certain limit).

 Most homeowner’s insurance policies include some amount of Loss of Use or ALE, but determining the proper amount can be tricky.  Speak to your knowledgeable broker at Tegner-Miller Insurance Brokers. We can help you pick the right home insurance policy for your needs.  Please call us at (310) 828-9662.

The information provided in our blogs are very brief overviews that do not provide complete descriptions of any coverage described nor do they list all of the important factors one should evaluate before deciding on a policy. Please speak to your broker at TMIB about your specific insurance needs and for more detailed information about types of coverage.