Residents forced from their homes by disasters should remember that they may well have insurance coverage under their homeowners’ insurance policies that will help pay for food and housing and other essentials of daily life. Such coverage is called “additional living expense” (ALE), according to the American Insurance Association. “Peril evacuees may either be in hotels, in evacuation shelters, or staying with friends or relatives, and may be uncertain as to whether their home is uninhabitable,” said Janet Bachman, AIA vice president.
“These policyholders should call their insurance company to inform them that they have been required to leave their residence and the area due to the disaster, and to get advice on how their ALE coverage can assist with additional living expenses if either they were required to evacuate or if their home is uninhabitable due to fire, smoke or water damage.”
Homeowners’ insurance policies specify the amount of ALE coverage available. Generally, ALE pays for the difference between what it cost the family before the loss for housing and food and what it costs post-loss. As an example, before the loss a homeowner may have had a mortgage payment and utility bills (phone, electricity, etc.), and average monthly costs for Post-loss, the homeowner/family is staying in a motel or rents an apartment and eats many meals in restaurants. The insurer will pay for the difference between the cost of all these items pre-loss (minus non-continuing expenses such as utilities) and the cost of these things post loss.
Opening a bank account is a great way to help document your additional living expenses.
Policyholders should keep all receipts for lodging and meals to make the claims process easier. Some insurers will provide ALE funds immediately upon being notified of a loss; others may reimburse policyholders at a later date. It is important for policyholders to contact their insurer or insurance agent for more information about this coverage.
For prompt payment of your additional living expenses, provide your carrier with documentation regarding your special disaster-related expenditures. When possible, the documentation should include the vendor, to write a check make sure you don’t lose the receipt. This process will give you a detailed monthly expenditure of all your expenses plus keeping track of the funds
received from the insurance carrier.
Envelopes/Logs
Use the Expense Log envelopes and Mileage Log forms from your Concordia Claims Manager to keep track and store your expenses and mileage. Re- member that your food expenses will be reduced by your normal monthly expenditure and you will only be paid for the amount above what is considered your normal expenditure. Once the envelope has been completed, fold the Expense Log envelope with receipts and Mileage Log – insert inside the Mailer envelope. Remember to write your last name on the client line and place stamps on the envelope then mail to the offices of Concordia Claims Managers. Remember that the stamps become an extra expense due to the disaster and to add them to your next expense report.
Payment$
Unfortunately many insurance carriers are slow to pay expenses. Expect delays in payments and call your claims Concierge when concerned of if you have any questions. Your expenses will be categorized and resubmitted to the insurance company promptly by your Concierge. If possible we will request on your behalf that any payments for lodging/temporary living conditions will be paid directly by the insurance company and not require you’re getting involved.
Tips on Expenses
Insurance companies are notorious for wanting documentation regarding your expenditures. It is not uncommon for them to state – “Go ahead and purchase your replacement and send the receipt to us and we will consider the payment.” Remember to only purchase items that the insurance company has already approved and not subject to consideration…these items may never get paid. Also before making blanket statements with regards to how much you spend weekly on food, please consult your Concordia Claims Manager.
New Bank Account
The best idea is to go to your bank of choice and open a new account specific for this disaster. Request a debit card. Now make any and all purchases with the debit card only. Now you have dates and amounts. Remember that different insurance policies may have different requirements. Consider all the following receipts:
Expense Checklist
•Hotel/lodging/rental costs
•Generators
•Food
•Gasoline
•Water
•School Supplies
•Laundry supplies and laundry services
•Parking Fees
•Toiletries
•Pet kennel services
Ways to Document Your ALE
•Receipts from vendors
•Bank Statements
•Credit card receipts
•Statement from vendors/relatives
•Credit card statements
•Cancelled Checks
•Bank debit receipts
•Duplicate copies of checks
•ATM withdrawal receipts
•Duplicate receipt from vendors
It is important to provide a detailed statement for all expenses incurred. If you do not have a receipt for a particular expense, provide a written statement to your insurance carrier. Include as much detail as possible about the items purchased, vendor used, amount expended, etc. Keep copies of these records and all documents submitted to your insurance carrier.
Your Concordia Claims Manager will provide you with a computer/paper template and a series of envelopes to assist in the documentation of your expenses. Using the computer template complete the form and submit to your claims manager via email or use the paper form and mail it along with the receipts in the pre-addressed envelope.
Concordia Claims Managers 