Are living expenses reimbursable?

If a windstorm, hurricane or other perils have damaged your home to the point you cannot live there, you may be entitled to reimbursement for expenses incurred while your insurance claim is being investigated. 

It’s important to review your insurance policy to learn about the different provisions and entitlements. Nearly all policies allow what is called an additional living expense (ALE). A general rule of thumb is 20% of the insured value of your home. For instance, if your home is insured for $300,000 you have $60,000 in ALE over a 12-month period. It’s important to review your policy for exact details. 

Common and Not-So-Common ALEs:

  • Hotel and Temporary Housing
  • Restaurants and Eating out
  • Pet Boarding 
  • Storage Costs
  • Furniture Rental
  • Moving/Displacement Costs
  • Laundry
  • Utilities
  • Gas and Mileage

Furthermore, you are not required to downgrade, but it is advisable to not overdo or overspend on this component. However, if you are a typical family of four that lives in a two-story home you are entitled to a comparable temporary housing of your home. It could take months or up to a year for your life to return to normal and be back in your home, so you need to consider and plan accordingly. 

If you have any questions about your policy, or would like your case reviewed by an expert insurance claim lawyer, contact us or call us directly at (954) 315-1155.

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John Salas