Additional Living Expense

Additional living expense is paid when your dwelling is sufficiently damaged by something like a fire and now you cannot safely live there. This could also happen after the fact and you cannot be in the home while the repairs are being done.

The damage has to be severe enough that your dwelling is unfit for you to occupy. It will also be paid if you have to move out to allow necessary repairs to the property.

This is an important part of your claims coverage. The amount of coverage is determined by a percentage of the dwelling amount if the policy is a homeowners. If the policy is a tenant's or condominium owner or tenant then the amount is determined by the contents limit.

The additional living expenses can include but are not limited to, taxi fares for transporting children to and from school and kennel costs for a family pet. The costs are for the extraordinary costs over and above what you would normally pay for your normal standard of living.

If your dwelling is a 1000 square foot bungalow then the insurance claim will question your renting a 2000 square foot luxury home. You would also have coverage when civil authority restricts access to your dwelling because of something happening in your neighbourhood or if there was a call for mass evacuation.

Rental property can be difficult to locate and often quite expensive. If it was necessary then you could find yourself staying in a hotel until a property that suits your needs is found.

Your needs should be discussed with your agent or broker. This could be a part of your decision as to what limits of insurance to purchase for when something bad happens and you find yourself without a home for you and your family.