Should expenses related to content removal be classified as Additional Living Expenses (ALE) or as personal property?
Hello! After a fire at my home, the content restoration company came and packed up all the items from my bedrooms, leaving me without clothing and essential items. My first adjuster indicated that these costs would fall under additional living expenses, but now I’ve been assigned a new adjuster who argues that it should be categorized as personal property. He claims that this situation doesn’t affect me at all. What are the implications of this? Does it matter where the funding comes from or which coverage is applicable?
I’m sorry to hear about the fire and the challenges you’re facing with the adjusters. This can certainly be a confusing situation, and it’s important to understand the implications of how your expenses are categorized.
In most insurance policies, Additional Living Expenses (ALE) coverage is meant to assist with costs incurred when you can’t live in your home due to a covered loss, like a fire. This typically includes expenses such as temporary housing, food, and essential daily needs while your home is being repaired or replaced.
On the other hand, Personal Property coverage relates to the physical items that were damaged or destroyed, including clothing and other necessities. If these items are being removed due to the fire and you need to replace them, that cost may fall under your personal property coverage.
The key difference between the two categories lies in how the funds are utilized:
Your situation seems to fit into the ALE category because you’re being put in a position where you have to quickly replace necessary items due to the fire. If the first adjuster believed this was part of ALE, it may be worth advocating for that classification, especially since you are facing additional expenses while displaced.
In terms of money, yes, it does matter where the money comes from because it can affect your overall coverage limits and how much you can claim. Ultimately, if you can demonstrate that these expenses are a direct result of losing the use of your home, that aligns more with ALE. If the new adjuster insists on classifying it as personal property, it may limit your ability to claim necessary living expenses during your displacement.
It might be beneficial to document all of your expenses and communications with the adjusters. You could also consider speaking with your insurance company’s customer service or even seeking advice from a public adjuster or an attorney specializing in insurance claims if you feel that your needs are not being adequately met. Good luck, and I hope things get resolved quickly!