What Are Additional Living Expenses?

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What Are Additional Living Expenses

<lingo>Additional living expenses are those expenses an insured and his or her family will incur after suffering covered damages to a home which may not be inhabitable. These additional living expenses may be short-term when damages are minimal and can be repaired quickly. 
They could be extended when a property is severely impacted and needs major repairs or even replacement. Typically, these expenses include living space (a rental home or hotel), meals (including dining out), transportation, storage, laundry and more. Generally, an insurance company will cover expenses that meet the lifestyle an insured had been living.</lingo>  

Additional Living Expenses Clearly and Briefly Explained  

Homeowners insurance is designed to minimize financial loss when a calamity occurs. When a family loses use of their home due to a covered risk, they will likely absorb expenses related to living elsewhere. These expenses will not only include rent or hotel room fees but those associated with dining, laundry, storage, additional transportation expenses and even boarding for a pet. These additional living expenses are usually covered, at least to some point, in a homeowners' insurance policy. These additional living expenses are usually covered up to the living standard the covered family had previously been living. In other words, additional living expenses will not include living in a mansion if the damaged home was a two-bedroom condominium. Likewise, 7-day a week dining at a five-star restaurant would also likely be challenged by an insurance provider. 

 

<twitter>Additional living expenses are those expenses an insured and his or her family will incur after suffering covered damages to a home which may not be inhabitable. </twitter>

 

 

It is important to know any coverage limitations one has in their additional living expenses or "loss of use" coverage, work in good faith with their insurance company and keep detailed records and receipts of any expenses incurred. The payment of additional living expenses from an insurance company will generally start the day loss of use is first experienced and will cease when a family moves back into their repaired or rebuilt property. 

 

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