Understanding Additional Living Expense (ALE)

Upon experiencing a covered loss to your home that renders it uninhabitable, your homeowner policy provides for the temporary increase in living expenses.  

ALE pays for reasonable costs for temporary living facilities, moving, furniture, appliance rentals, and meals out as needed. It pays almost any living expense that is truly additional. ALE pays for any expense that you would not have if your home hadn’t been damaged.  

Any amounts paid under this coverage are offset against living expenses that are lower, such as heating and cooling in your vacant house which is substantially cheaper during the period of absence.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

 

Our dedication makes the difference...

    

 

 

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

 

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.

Rental Car Coverage

 Warm weather is just around the corner, and for many of us, so is our summer vacation. Some of you will use your own vehicle and drive to your destination, while others will choose a rental vehicle for the trip, or take some other form of transportation to the destination and rent a vehicle for use while there. Whatever your situation, you need to be aware of how coverage might extend to that rental car from your personal auto policy.

Car rental companies used to provide their own physical damage coverage with very large deductibles of $2,500 up to $5,000. They would make the renter responsible for that large deductible. If the renter had physical damage coverage on at least one of his own cars, and was involved in an accident in the rental car, the renter would limit his responsibility to his own deductible, probably less than $500. The personal auto policy would pay the amount up to the rental car company’s deductible, and then the rental car company’s own insurance would pay the balance.

To save money, most rental car companies stopped buying physical damage coverage on their large fleets. The rental contracts changed to make the renter responsible for the total value of the auto, including other indirect costs, such as their administrative fees and loss of rental use of the auto. This amount could easily move into the tens of thousands of dollars.

Rental car companies like for you to take out their collision damage waiver insurance. You should be aware that most rental car companies’ contracts for collision damage waiver will not pay if the renter violates any restrictions regarding the use of the rental car. Some of these restrictions might include use by an underage driver, failure to buckle up or engaging in risky behavior with the vehicle, such as racing or driving under the influence.

You don't have to navigate this issue on your own.  We're here to help.  Contact us to find out more about how your personal auto policy may or may not extend coverage to rental vehicles.

Reichley Insurance Agency is committed to excellence. We pride ourselves on offering our clients reliable coverage and great service. As an independent Ohio insurance agency, we can provide you with all types of insurance coverage from the top carriers in the country. Our team of trusted agents will work with you to find a policy that meets your needs – and falls within your budget.

Our dedication makes the difference...

    

 

Toll Free: 87-REICHLEY (877-342-4539)

Email: info@reichleyins.com

The information in this article is meant as a guideline only. There is nothing in this publication that alters the coverage or interpretation of any specific policy. Because some statements are generalizations, and because different companies’ policies contain slight differences, please refer to your specific policy. Call our office before making any judgments or decisions concerning your particular situation and coverage that may or may not apply.