ALE Daily Limit Donna DiGangi asked 2 years ago
ALE Daily Limit

My insurer is now wanting me to move from my one-bedroom hotel room because they say it’s a $20/night higher cost than the daily maximum that they suddenly decided to tell me applies, after 4 months. (By the way, all they’ve been doing is denying and delaying on their adjustment, making me chase down costs on top of it and then ignoring the quotes I send. It’ll be many months before I’m back in my home.)

They want me to move to Candlewood Suites with their ALE vendor. I lived in a fully remodeled 3/2 with garage and yard. It’s just a mid-range Marriott property that I’m in. What are the rules?

It sure seems that because I’m complaining about late reimbursement and about the structure that they are now imposing an arbitrary rule/amount.

1 Answers
Jim Beneke Jim Beneke Expert answered 2 years ago

Additional Living Expense (ALE) is intended to keep you in the lifestyle you enjoyed prior to the loss (within reason). You are entitled to the amount per month it would cost to rent a home exactly like the one you vacated. Since ALE is based on “incurred” costs, they won’t give that amount as an allowance, but will pay up to that amount for comparable quarters that you actually rent. Hotels and extended stay properties are usually used only for short term stays. If you are going to be out for months, they should allow for a house, or an apartment. They should also allow for furniture, appliance, and TV rentals comparable to the items you had in your home. Any other expenses that you incur over and above your normal monthly expenses (additional mileage for example) should also be covered. If your insurance company’s ALE vendor can’t locate comparable properties for you, there are plenty of others out there who can. You are not required to only work with their vendor.