Not many people sit and think about what they would do if a devastating tornado or fire completely destroyed their home and left them "homeless . "When the unthinkable happens, additional living expenses, an often overlooked coverage that is usually part of a homeowners policy, may prove to be a financial and emotional buoy rescue.
homeowners insurance is an intangible asset that can be difficult to understand -. until you really need, however, it provides peace of mind disaster occur most owners and renters insurance policies include Living expense (ALE) additional coverage, which is also known as "loss of use". This coverage provides reimbursement for additional living expenses while your home is repaired or rebuilt because of a covered loss.
The purpose of the FTA coverage is to help you maintain your current standard of living during the reconstruction process. Examples of this would cover: (this list is not exhaustive)
- cost of a hotel or rental, including
- charges storage rental deposit for your belongings
- rental of furniture and kitchen supplies, if necessary
- short-term food expenditures (until you find a place with a kitchen)
- laundry needs if your home has a washer and dryer
- costs for boarding animals
- additional mileage costs associated with employment , schools, church and home repairs
- costs between renting and damaged residence Moving
a covered loss must occur to cover the FTA to apply. This includes but is not limited to damages caused by the wind, fire, lightning, vandalism, or explosion. A standard home insurance policy does not cover flood damage, so these living expenses would be out of pocket. Remember, the FTA coverage is intended to help with the additional living expenses, not all living expenses. The warranty covers the expenses that you would not have incurred had the disaster not occurred. It does not cover your current mortgage, property taxes or entertainment expenses.
Another thing to consider is the limit of additional policy Living Expense. ALE coverage is usually based on the amount of insurance you carry on your home (cover A value). It can be capped at a percentage of your dwelling limit, usually 20 percent of the cover A. For example, if your home is insured for $ 250,000, you could have up to $ 50,000 for expenses additional living.
We encourage you to discuss this coverage with your independent insurance agent. Ultimately, the time to discuss is before loss occurs!
The benefits described here are in the most general terms and is subject to actual policy exclusions and conditions. For the actual wording cover, conditions and exclusions, see the policy or contact your agent.
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