Toll Free (866) 885-9785

Additional Living Expenses, Farms & Vacation

Heidi Campana, ALE Housing Solutions National Account Manager, continues our series of posts regarding questions relevant to loss of use claims. Heidi addresses two common scenarios regarding the insured utilizing their policy’s Additional Living Expense (a.l.e.) over opting to receive a Fair Rental Value (FRV) payout.

Note: As a general rule, when a policyholder is requesting payment for Additional Living Expenses, not all requests are covered, and they must meet certain criteria before they get paid. Of course, we suggest comparing our answers to your specific Additional Living Expense policies.

Additional Living Expenses vs. Fair Rental Value

Q. The insured has a family farm. The only suitable rental is 15 miles away to the nearest town. Does insurance pay for mileage to and from the farm?
Additional Living Expenses vs. Fair Rental ValueA. Yes, additional mileage would be a covered additional living expense while being displaced due to a loss. ALE coverage reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured’s normal expenses prior to the loss. Since, the insured will be traveling back and forth to tend to their farm, they would incur additional expenses due to additional travel from the temporary residence. I would suggest discussing the additional mileage with your claims adjuster to verify how to document these additional living expenses for accurate reimbursement.

Q. A displaced family goes on a one-week vacation that they planned before the claim. Does insurance cover any of their additional living expenses?
Additional Living Expenses vs. Fair Rental ValueA. Additional living expenses for the week of vacation would usually not be a loss expense since the trip was pre-planned prior to the loss.

However, on occasion I have seen adjusters/insurance carriers make exceptions. The insurance company would be paying for a hotel stay if the family were not going on vacation; so at times they will cover these expenses. Often, the amount that the family will get reimbursed is based on the average hotel rate they would have paid if they were staying in a local hotel.  It is best to discuss this unique situation with your adjuster to determine if your insurance carrier would cover any of these expenses.

Additional Living Expenses vs. Fair Rental ValueI LOVE MY JOB because “ALE Solutions is a company that cares for both customers and employees alike. I feel privileged to work for a company that creates a fun working environment and has a passion for people. I value the friendships that I have made with my co-workers, as well as the long-time relationships with the adjusters I work with on a daily basis!” – Heidi

Photo credit: ©iStock.com/boggy22, anyaberkut, zaozaa09 

 

Tags

Leave a Reply

Your email address will not be published.

  • MyALE

    Claims Portal

    • Personalize a dashboard
    • Manage in real-time
    • Access on all devices
    • Request or extend temporary housing with one click

    Learn More


  • Join Our Facebook Fan Page Check Us Out On Instagram Follow Us On Google+ Follow Us On LinkedIn Follow Us On Twitter View Our YouTube

  • Weather Safety



  • Instagram
    • When a disaster strikes it can make communication nearly impossible
      When a disaster strikes, it can make communication nearly impossible. Instead of panicking, stay calm and remember these tips to help maintain communication during and
    • Visit us Wednesday October 16th at the Northern Illinois University
      Visit us Wednesday, October 16th at the Northern Illinois University All-Majors Internship and Job Fair! Explore our open positions today! https://www.alesolutions.com/careers
    • Remembering 911
      Remembering 9/11.
    • ALE Solutions is thrilled to be a Big Hearts of
      ALE Solutions is thrilled to be a Big Hearts of Fox Valley 2019 Christmas Sponsor in efforts to brighten the lives of underprivileged children in
    • So grateful that ALE can play a small part in
      So grateful that ALE can play a small part in making a difference in Gavin’s life! Thank you Julie DuJardin for being a great ambassador
    • So grateful that ALE can play a small part of
      So grateful that ALE can play a small part of Brian’s W15H weekend.
    • Celebrating a combined 412 YEARS at ALE Solutions!! httpswwwfacebookcomalesolutionsposts10157649630583695
      Celebrating a combined 412 YEARS at ALE Solutions!! https://www.facebook.com/alesolutions/posts/10157649630583695
    • HappyFirstDayofFall! Before the cool temperatures hit make sure your home
      Happy  #FirstDayofFall ! Before the cool temperatures hit, make sure your home is ready for the season shift with these Fall Home Maintenance Tips on the ALE
Get fresh, free content delivered monthly »
About Us  |  Contact Us  |  Legal / Privacy  |  Sitemap
PLRB