Should expenses related to content removal be classified as additional living expenses (ALE) or personal property?
Hello! After a recent fire at my home, a content company came in to pack up everything from my bedrooms, leaving us without any clothing or essential items. Initially, my first adjuster indicated that these expenses would fall under additional living expenses. However, I’ve now been assigned a new adjuster who insists that they should be classified as personal property instead, arguing that this doesn’t affect me directly. What are the implications of this classification? Does it really matter which coverage is responsible for these costs and where the money comes from?
I’m sorry to hear about your situation with the fire. It can be confusing to navigate insurance claims, especially when different adjusters provide different interpretations.
In general, additional living expenses (ALE) coverage is designed to compensate you for increased living costs when your home becomes uninhabitable, such as temporary housing, meals, and other necessary expenses while your home is being repaired. Personal property coverage, on the other hand, typically covers the loss or damage to your belongings due to a covered event.
In your case, the costs associated with the content removal and the necessity to replace clothing and essentials might be considered ALE if you’re currently living away from your home and need to maintain a certain standard of living. If no clothing or necessities were salvageable and you’re incurring costs to replace them due to the temporary displacement caused by the fire, it could strengthen the argument for them being covered as ALE.
If the new adjuster insists that it falls under personal property coverage, it would mean that you would be filing a claim for the loss of your items rather than for the increased living expenses associated with temporary displacement.
Ultimately, it might impact your out-of-pocket costs depending on the limits of what each type of coverage offers. It’s important to carefully review your policy and maybe even consult with a public adjuster or an insurance professional who can provide guidance specific to your policy and situation. Make sure to document everything and communicate clearly with your adjusters to advocate for the appropriate coverage for your circumstances.