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Quick Tip: The importance of Additional Living Expenses

By April 10, 2017 April 15th, 2018 Personal Protection, Quick Tips

Justin Kraus, Personal Lines Manager, explains the importance of additional living expenses.

Additional living expenses is a very important coverage in your insurance policy. In the event that your home is uninhabitable due to a covered peril, this coverage will pay for you to live elsewhere while your home is being repaired. This can include eating meals out, a stay at a hotel or temporary housing.

Some companies offer a cap on this limit, whereas other companies have no limit and will pay any reasonable amount for up to 1 year. It is very important to review this limit, especially if you live in an area where renting temporary housing is expensive like NYC, where rents can range from $3,500 to $10,000 per month. You want to make sure that you have enough coverage for a minimum of 6-8 months.

If you rent your home or unit, this coverage will reimburse you for the lost rent you cannot collect from a tenant because they cannot live there due to a covered peril. This limit should be the amount of at least one year’s rent.

For more information, please contact us.