Time and tide wait for none. Natural calamities strike at any time. In such a situation, with your life being endangered, your house and other valuable assets are at the risk of being destroyed as well. You might have to bunk beds with others if you do not have an adequate sum of money in your account when such conditions arise. While friends and family can quickly help you out for a short span of time, you cannot depend on them for a longer period of time.

You might have invested in renters, a condominium, or homeowner’s insurance, but you can take it up a notch by buying an additional living expense or ALE insurance policy. This insurance compensates you when you are incapable of living in your residence owing to an insured loss or claim, while your residence is being refurbished. It also allows you to sustain your regular lifestyle despite the unfitting events that might have occurred in your life until your limit for the policy is reached.

The best part about this policy is that you will not have to worry about staying at someone else’s house and invading their privacy. You are bound to have additional expenses apart from the ones that you incur in this phase while trying to restore your home in a reasonable position, and this can quickly be taken care of by this type of insurance.

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If your home, under any circumstances, has become inhabitable through no fault of your own, you can claim ALE insurance easily. This does not necessarily mean that a natural calamity or an untoward event such as fire needs to occur for you to get the claim. A simple repair work in the house can become as inconvenient and render the house unfit for living, especially if your family has elders or small children, who need constant attention. In such situations, you might decide to rent out a space where you can move temporarily and access your house easily when required. The cost of this will be taken care of by the insurance, and in the interim, you can live a little more luxuriously.

Many things can be covered in the claim, for example:

• Restaurant meals
• Increased cost of transportation from your usual workspace as the distance might have increased
• Cost of temporary accommodation
• Cost of furniture rented out
• Laundry services in case your laundry is inaccessible
• Storage cost of hired garage space to keep things intact while the house is not in its best shape.
• Cost of moving stuff from current home to rented space
• Pet boarding in case you have any pets that cannot live with you for the time being
• The insurer wants to make sure that they can find common ground on the place that you have been living in and the area where you should be moving. This is why they show prospective spaces that are similar to your own so that you save on money and they do not have to spend extra on a lavish accommodation.
• The insurance comes with an upper limit on spending based on the premium paid, and the insurer will not pay more than this limit under any circumstance. Hence, you should ensure you have sufficient cash and keep intermediate expenses in check.

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