Can ALE be triggered when policy limits are exhausted?

Coverage Q&A: This week's Q&A asks if Additional Living Expenses covers cleaning and restoration costs after dwelling coverage is exceeded.

The insured experienced a home fire that caused smoke damage. (Photo: Shutterstock)

Every claim is different, and some insurance policies can be difficult to interpret for unique situations. FC&S Expert Coverage Interpretation, the recognized authority on insurance coverage interpretation and analysis for the P&C industry, makes it simple to find credible answers to your complicated coverage questions. Analysis brought to you by our FC&S experts. 

Editor’s Note: One of the most confusing coverages is Additional Living Expenses, often referred to as ALE. It provides coverage for additional costs the insured incurs when displaced by damage to the dwelling. This week’s question deals with the use of ALE for coverage for removal and storage of contents when the limits for the dwelling have been exhausted. Is safeguarding contents covered under ALE?

Question: I am representing a tenant in a home that had a one-room fire with a lot of smoke. The tenant’s insurer paid to have the undamaged portion of the contents removed and stored. We have exhausted the contents coverage with cleaning and restoration costs. My associates tell me that they have covered the content manipulation and storage under ALE. What do you think?

— Massachusetts Subscriber

Analysis:  It is extremely broad coverage and pays for the insured’s hotel expenses, meals, and even boarding pets if the alternate accommodations for the insured do not allow pets. However, it only goes so far.

Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.

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