When a covered loss makes your residence uninhabitable or you are denied access to your home by an order from the government, some insurance companies will pay reasonable increases in your living expenses to uphold your normal standard of living. This coverage is termed ‘Additional Living Expense’ or ‘ALE.’ If your home insurance includes this coverage, this portion of your policy begins at the time of the loss. An independent agent can assist you in finding the best coverage for your home in Green Valley, Arizona.

ALE coverage is limited

However, under most homeowner policies ALE coverage is limited. Typically, there are three ways this limit is defined:

1. Payment only continues for the least amount of time required to replace or repair the damage to your house.
2. Until you permanently relocate.
3. In Arizona, your policy will most likely stipulate a maximum number of 12 consecutive months or the least time it takes for your house to be repaired or re-built or the least amount of time it takes you’re household to settle somewhere else.

On average, the Additional Living Expense portion of a typical home insurance policy in Arizona pays up to 20 percent of your policy limit. Your insurance company usually continues paying these expenses until the time limit is reached, you permanently relocate or your home is repaired, re-built and habitable.

Disaster-related misplacement

If you receive the maximum ALE settlement allowed by your insurance company following a disaster-related temporary housing need and still require assistance, the Federal Emergency Management Agency (FEMA) may be able to help you. You need to write a letter to FEMA that indicates why you still need temporary housing. You must also provide them with documentation showing that you already used all of your Additional Living Expense benefits along with a plan for permanent housing.

If you are concerned about being misplaced, you may want to purchase a separate ‘loss-of-use’ policy. Some insurance companies offer a policy with an unlimited amount of expense coverage. However, there is still a time limit on these policies.

As your independent agent, we are happy to help you find the best coverage for your Green Valley, Arizona house. We can give you the details you need to ensure you choose the best coverage possible. Contact us today.

If your Green Valley, Arizona home is damaged from a fire, then it is important to make a claim with an insurance provider as soon as the accident or problem occurs. Even if the home insurance records are lost as a result of burning in the fire, your insurance provider will have a copy of your policy and any other documentation that you provided before the incident occurred.

Call the Company

The first step of recovering from the fire is calling your insurance provider and talking about the situation. Explain that you’ve lost the records and need a copy of your current policy. The company will send you a copy so that you know what is covered and what is not.

If you sent any documents to the company when you are obtaining coverage, then ask for those records at the same time. Your insurer will be able to give you copies of any documentation that you provided in regards to expensive personal belongings that were insured separately.

Give Pictures of Belongings

Even if your records were ruined, you may still have pictures on your smartphone, digital camera or on a social networking website where you’ve posted images. Your belongings might be seen in the background of pictures you took in the house.

Get a copy of any images made so that you can show the company what was in the room. Without clear pictures or records of the belongings, you may be denied for expensive items that were also lost.

Keep Copies in a Separate Location

Ideally, any documentation related to your homeowner’s coverage should also be kept in a safe deposit box at the bank or a similar separate location. By having it kept separately, you will always have a copy available if a fire occurs in the future.

Damage to your home does not mean you have limited options. To learn more about keeping your belongings safe, contact us to talk to an independent agent.