I am representing a tenant in a home that had a one-room fire with a lot of smoke. The tenant's insurer paid to have the undamaged portion of the contents removed and stored. We have exhausted the contents coverage with cleaning and restoration costs. My associates tell me that they have covered the content manipulation and storage under ALE. What do you think?
Massachusetts Subscriber
ALE is not designed to provide coverage for removal and storage of contents if the limits have been exceeded. It is for additional expenses the insured incurs when the dwelling is unfit to live in because of a covered cause of loss. The ALE is so that the insured can maintain his normal standard of living. For example, if the residence was unlivable, ALE provides coverage for hotel rooms and meals out since the insured cannot live in his dwelling or cook food. ALE pays the hotel bills and meals out.
The two things are totally separate; storing contents that have been removed because of smoke damage is not increased living expenses, it is part of the loss itself. It has nothing to do with the displacement of the insured or maintaining his normal standard of living.