The Road to ALE, from Loss to Being Incurred

Originally published by Denise Sze.

In Part 2 of this series I talked about what constitutes “Uninhabitable conditions” that trigger the possibility of ALE payments to the insured. This week, before we hit the ever controversial prong of ALE “incurred expense,” I wanted to revisit a sub-issue of ALE that insurers are a stickler on: “normal living conditions.”
Importantly, ALE – additional living expenses – is just as it sounds. The ALE provision of a policy pays for additional living expenses of an insured after a loss and no more. The ALE provision of a policy has no intention of placing a policyholder into a better position than the policyholder was in prior to the loss. The ALE provision becomes payable when the “normal” living conditions of the insured changes and “any necessary INCREASE in living expenses incurred so that the policyholder’s household can maintain its normal standard of living.” ALE does not provide basic payments for a insured’s…

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