The Louisiana Department of Insurance issued guidance for residents who have a homeowners policy with Additional Living Expenses (ALE) coverage ahead of Hurricane Francine.
ALE coverage pays for additional living expenses like hotel stays and food while a policyholder’s home is inaccessible following a covered property loss. Policyholders who have ALE coverage and live in an area that is placed under a mandatory evacuation may be eligible for short-term ALE coverage for up to 14 days while the policyholder is prohibited from returning to their home.
If no mandatory evacuation is declared, policyholders with ALE coverage may still be eligible for these expenses depending on the terms of their policy, the accessibility of their property and several other factors.
“It is vitally important for policyholders to understand what their policy covers and does not cover,” Commissioner Tim Temple said. “If you are not sure whether you have ALE coverage that would be triggered by evacuating due to Hurricane Francine, I urge you to contact your insurance agent or company immediately.”
ALE coverage is not provided in all homeowners insurance policies, and some policies contain different terms that must be met to receive a payment under the policy. If a policyholder does have ALE coverage, they should keep receipts for all expenses that could be reimbursed through ALE including, but not limited to, hotel receipts, meal receipts and more.
Francine is expected to make landfall in Louisiana Wednesday as a Category 1 hurricane.
Source: LDI
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