Additional Living Expense Loss
Additional living expense or loss of usage is usually a primary concern of an insured following right after a loss of a property and is basically the first dollars paid in a homeowner policy. A homeowner insurance policy offers additional living expenses or ALE under Coverage D- Loss of Use. Additional living expense benefits the insured from critical and immediate needs for shelter and food following a total or substantial loss. In this manner, the insurer handles all the ALE claims made by the insured in relation to the loss. The efficient and prompt dispatch of the benefits on both parties may be achieved through establishing a good relationship between the insurer and the insured. Communication is still a key for developing rapport. It is the task of the insurer that the insured understands all his obligations and benefits of the ALE provision in the policy. By giving time to explain the benefits to the insured, the insurer may reassure that ALE benefits are available in critical times. Through clarifying the obligations of the insured in the provision, the insurer may cover up potential disputes once it asks the insured to authenticate the requested benefits. The provisions of appreciated and necessary assistance to the insured lessens and controls the costs of ALE since an insured is not most likely to inflate the claim while believing that the insurer is sympathetic to the needs and obligations under the policy. When the immediate needs of the insured are met, the two parties may focus on resolving the remaining claim issues. Establishing a good relationship to the insurer during the Ale payment time will facilitate the whole claim adjustment process at the same time it offsets the chances of unavoidable delays in the processing for the claims against the refusal or delay of the payments by the insurer.
Payment for additional living expense is made in a shortest time needed to replace and repair the premises and if the insured opts to relocate. If the civil authority does not allow the insured from using the premises due to the damages it caused to the neighboring premises through a Peril Insured Against the policy, a fair rental value and additional living expenses benefits are given in no more than two weeks.
The main purpose why ALE is included in the policy is to protect those individual against additional expenses which will be incurred during the maintenance of the household following a loss or a total loss of the residence. To be able to get a reimbursement of ALE coverage, the insured has to take steps which will allow him or her and his or her family to live in the normal standard of living. These steps include locating a substitute housing that is located and priced affordable enough to return in a normal life. To make this happen, a professional should come along with the insurer. In this process, the insured can assure that the cost is covered with the same amount mandated in the policy, thus making the process easier and faster.