Brokers operating in Kern County might want to remind their clients of additional living expense coverage, or ALE, especially those policyholders who have been affected by the recent wildfires.
As of Saturday, the growing conflagration threatens 1,500 structures, has spread to about 19,000 acres and destroyed 100 structures—80 of which are residences—reported
bakersfielddnow.com.
Additional living expense coverage allows policyholders, whether homeowners or renters, to maintain their normal standard of living by covering the increased expenses sustained as a result of a mandatory evacuation or catastrophe, like the recent wildfire. ALE coverage usually includes food, housing costs, furniture rental, relocation, storage, and transportation expenses.
"Displacement due to disaster can burden evacuees financially and emotionally," said California insurance commissioner Dave Jones. "It is important to help residents recover and get their lives back on track. Many evacuees may be unaware if their insurance policy covers additional living expenses associated with mandatory evacuation and recovery. I urge evacuees to contact their insurer for assistance, if needed."
Policyholders eligible for ALE are advised to keep receipts for all expenses associated with their relocation. Since policy provisions and deductibles vary by company, insurance agents are instructed to provide guidance to their customers and help them understand their coverage limits.
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