X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Additional Living Expense (ALE) coverage is one of those broad coverages that can bedevil adjusters, agents, and insureds alike. Even so, it is one of my favorite topics.

So just what exactly makes a residence “unfit to live in”? Must the entire house or merely part of the dwelling be uninhabitable? A recent question concerns a family with a covered water loss. Although the house is intact, the health department has deemed the water supply no longer safe because of the water leak. The insurance carrier did not want to pay to relocate the family because the house was intact. This is an incorrect interpretation, however, as a habitable dwelling comprises more than just a solid structure. If the insureds cannot use the water or other utilities because of a covered loss, then the carrier must pay to relocate the family. In this situation, the family must be relocated to a place with potable water.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.