Toll Free (866) 885-9785

Leases, Nannies and Additional Living Expense

Tina Jackson, ALE Housing Solutions National Account Manager, continues our series of posts regarding questions relevant to loss of use claims. Tina 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.

Learn How ALE Works with Nannies & Leases

Q. A family rents an apartment for one year at $1,000 per month with the full knowledge that there is a one-month lease break fee. After five months, the family’s damaged home is repaired and ready for them to move back in. Does insurance cover the fee?

Learn How Additional Living Expense Works with Nannies & Leases
A. The early termination fee would be a covered expense as the homeowner would not need to pay it as part of their normal living expense. Signing a one-year lease would typically allow the policyholder/insurance company to take advantage of a lower rate from the start of the lease. Paying a termination fee once the policyholder can move back into the damaged residence may be more cost effective than signing a short-term lease and paying a premium. In my experience, the average 3-month lease term is extended at least once due to unforeseen delays in the repair process. Each extension on a short-term lease is subject to a short-term premium. To alleviate the issue, the insurance adjuster could agree to a one year lease with a termination fee.

Q. The family has a live-in nanny. Will you pay for a separate hotel room for the nanny?
A. Additional Living Expense is typically extended to any “member” of the family that lives in the home at the time of loss. So, nannies living in the damaged residence at the time of loss would be covered under the policy for the additional living expense. If the live-in nanny had their own room in the damaged residence, they would be allowed a private room in a temporary residence (in most cases depending on the coverage amounts), be it a hotel or longer-term temporary housing. Each insurance company handles these situations differently, and it is something you should discuss with your insurance adjuster.

Learn How Additional Living Expense Works with Nannies & LeasesI LOVE MY JOB because “Working at ALE Solutions has been and continues to be a blessing in my life! I work with an awesome group of people, and the leadership is wonderful!  I have built strong relationships inside and outside of the office.” – Tina

Photo credits: ©iStock.com/Imageegaml, monkeybusinessimages, kali9

 

 

 

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
    • Starting ALE Solutions from the basement of her home Founder
      1 month ago by alesolutions Starting ALE Solutions from the basement of her home, Founder & President, Rowena Zimmers, turned her American dream into a reality! https://www.facebook.com/jpmorgan/videos/1003731813112668/
    • If you are a POLICYHOLDER affected by the TinderFire in
      3 weeks ago by alesolutions If you are a POLICYHOLDER affected by the  #TinderFire  in Blue Ridge, AZ and NEED TEMPORARY HOUSING ASSISTANCE, please contact our Catastrophe Call Center at (866) 885-9785.
    • Happy Easter from all of us at ALE Solutions! Easter2018
      2 months ago by alesolutions Happy Easter from all of us at ALE Solutions!  #Easter2018   #Easter   #HappyEaster   #EasterWeekend   #Faith   #GoodFriday 
    • Happy first day of Spring! With care and safety in
      2 months ago by alesolutions Happy first day of  #Spring ! With care and safety in mind, we have put together a Spring Cleaning Checklist to make seasonal home maintenance efficient, fast and easy. Read about this and more on the ALE blog, Discover! http://ale.solutions/spring-home-maintenance
    • Happy Saint Patricks Day!
      2 months ago by alesolutions Happy ‪Saint Patrick’s Day!
Get fresh, free content delivered monthly »
About Us  |  Contact Us  |  Legal / Privacy  |  Sitemap
PLRB