Understanding Additional Living Expenses Coverage
Your home insurance in Millerton, NY can protect you from so much more than physical damage to your property and liability claims. If your home is damaged by fire, water, or another type of insured loss, you may have no choice but to move into a hotel or temporary home while repairs are made. If this is necessary, the cost of the hotel and associated living expenses can be paid by your “additional living expense” (ALE) coverage.
What is ALE?
Most homeowners insurance policies cover policyholders and their household members for the increase in living expenses when their home is uninhabitable due to a covered loss. This means that you won’t be too much out of pocket if you need to relocate in order for your home to be repaired. Most policies will define living expenses as accommodation, food, residential utilities, and even laundromat costs.
Know the Limits
Generally, home insurance caps additional living expenses to a portion of the dwelling coverage, often 20 percent. There may be a time limit, too, such as 12 months. For example, if your home is insured for $200,000, then you have up to $40,000 to spend on additional living expenses. Once the twelfth month ends, however, the money will stop.
Let’s face it – accidents happen. When they do, homeowners insurance can help to pick up the pieces. To help you get started on your quality coverage, contact Kneller Agency to get started.
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