What Is Covered in My Home Insurance if I'm Evacuated?

If you're forced to evacuate your home due to a covered peril, like a wildfire, your home insurance policy may provide coverage for various expenses related to your displacement. Here's an explanation of what is typically covered in your home insurance if you're evacuated:

Additional Living Expenses (ALE): Home insurance policies often include coverage for Additional Living Expenses (ALE). This coverage helps reimburse you for the increased costs of living that you incur while your home is uninhabitable because of a covered event like wildfire. ALE coverage typically includes:

• Temporary Housing: The cost of renting a temporary residence, such as a hotel, apartment, or rental home, while your primary residence is being repaired or rebuilt.
• Food Expenses: Additional expenses for meals that exceed your normal grocery budget. This can include dining out or purchasing ready-made meals.
• Transportation Costs: Increased transportation expenses incurred due to the need to commute to your temporary residence, work, or other necessary destinations.

Reasonable and Necessary Expenses: The expenses covered under ALE should be reasonable and necessary. Insurance companies often require that your choices align with your standard of living before the covered event occurs.

Duration of Coverage: ALE coverage typically has a limit, which is usually a percentage of your dwelling coverage limit. This limit varies among policies and providers, so it's essential to review your policy's terms and conditions.

Coverage Limits: It's important to understand the coverage limits and any restrictions of your ALE coverage. If you exceed the coverage limit, you might be responsible for the additional costs.

Coverage Period: ALE coverage usually lasts until your home becomes habitable again or until you find a permanent residence, whichever comes first. This means that if repairs are completed quickly, or you find a new permanent home, the coverage might end before the full coverage period is exhausted.

Documentation and Reporting: To utilize ALE coverage, you'll need to provide documentation of your expenses, such as receipts for temporary housing, meals, and transportation. Promptly report your evacuation to your insurance provider and keep records of your expenses.

Policy Specifics: Every home insurance policy is unique, so it's essential to review your policy documents, contact your insurance provider, or consult with your insurance agent to understand the exact terms, coverage limits, and procedures for accessing ALE coverage.

While ALE coverage can be immensely helpful during challenging times like evacuations, it's crucial to communicate with your insurance provider and keep thorough records of your expenses. This will ensure that you're able to receive the appropriate reimbursement for the additional costs you incur while you're temporarily displaced from your home due to a covered peril such as a wildfire.