What is additional living expense coverage on a renter’s insurance policy?

At Heimgartner Insurance Inc. in Sioux City, IA, we understand that many renters mistakenly believe their landlord’s homeowner or commercial insurance will cover them and their belongings in the event of a fire or other incident. This is not the case. A landlord’s coverage only covers the structure of the residence. This leaves you responsible for purchasing new contents and finding temporary housing after an unfortunate event against your rented home. That’s why it’s essential to have a renter’s insurance policy. After defining a renter’s policy, we will explain the usefulness of additional living expense coverage as part of that policy.

What is a Renter’s Insurance Policy?

A renter’s insurance policy covers your contents in case of a covered incident such as a fire, windstorm, lightning, theft, or internal explosion. You purchase coverage that closely relates to the amount of money it would take to buy all new personal property if there was a total loss.

Additionally, a renter’s policy will cover you in case of liability in case someone is injured in your residence due to an accident, such as a trip and fall. Renters liability also protects you if you are found liable for causing a fire that damages your residence structure or the contents of neighboring property.

What is ALE Coverage?

Renters insurance also includes additional living expense (ALE) coverage. This coverage covers you as a renter when you have to pay extra costs related to being displaced by a covered peril that caused damage to your home or apartment.

While your rental is being repaired or rebuilt, ALE will pay up to a certain percentage of your renter’s content coverage (up to 30%) to help you with the extra cost of being out of your home. ALE will reimburse you for the following:

• Housing: The temporary cost of a short-term rental, hotel, or apartment.
• Food costs: Extra expenses related to food such as takeout, restaurant, or grocery bills.
• Travel expenses: The added cost of gas, Uber, or public transportation to get you to and from work when it exceeds your average travel distance.
• Storage Fees: The cost of holding the property you were able to save from the covered incident while being displaced from home.
• Laundry: Cost of doing laundry while your home is restored or rebuilt.
• Pet Fees: The cost of boarding your family pets after an incident while displaced from your home.

ALE typically reimburses you for expenses up to 12 months. However, depending on the circumstances of the rebuild, some policies may extend it to 24 months. So, be sure to keep your receipts.

Give us a call today.

For more information about renter’s insurance and what is covered under the policy’s ALE section, call Heimgartner Insurance Inc. in Sioux City, IA, at (712) 226-3853.