ALE needed to move repurchased property Ann Dixon asked 4 months ago
ALE needed to move repurchased property

Hi – We decided to buy rather than rebuild. We asked our insurance company to have ALE support us with the move. Our request was denied. The reason why is very confusing. Our adjuster said moving cost will come out of our personal property adjustment. She said further, that if we had repurchased something and put it on a contents claim then she might consider helping us with moving costs. Saying that we would have returned the ALE furniture as a result of purchasing the new furniture. We are confused because what we need to move is indeed what we have repurchased (treadmill, elliptical, spin bike, etc…). We have not yet submitted our personal property claim because we are not done yet. Shouldn’t ALE help us with moving costs? We will be saving them lots of money by not using ALE for 2 full years. Now that we have a house, we just started purchasing furniture that will fit that house, since it does not make sense to have it delivered to the rental house and then move. The furniture won’t fit in rental house.

This leads to my second question about the personal property claim. As background, we were paid 75% of contents insured amount. We know our long list (currently about 3000 lines long) will be depreciated. How much over the contents coverage amount on average do we need to add to the list to recover the total amount of the contents coverage? In other words, what is the average rate of depreciation used in all these claims? We want to be sure to put in enough items to get the max contents coverage per our policy.

Thanks for your time,

Ann – Marshall Fire 12/30/2021

1 Answers
Chris Rockers Chris Rockers Expert answered 4 months ago

Ann – ALE is to cover increased costs incurred to maintain your normal standard of living. Typically, costs incurred to move possessions are covered by ALE. Although unclear, in your situation the adjuster may be taking a position that as you lost everything, there are no salvageable possessions the carrier may be obligated to pay to have moved. Policies are similar, yet provisions can vary – without reviewing the ALE provision in your policy, I cannot assert with certainty the adjuster’s assessment/position is incorrect. The cost to move possessions is covered – whether under ALE or your Personal Property claim. If the incurred cost to move possessions is significant, and your PP limits are not adequate to replace your possessions, continue to seek reimbursement under ALE.

As for your PP claim – and to obtain the remaining 25 % – it appears the adjuster may consider incurred costs for moving/delivering possessions to your new home under this coverage. It will be important to determine/assess your PP loss – provide an estimated cost to replace all possessions – and determine whether the cost exceeds your limit. It is beneficial for homeowners to not only prepare a list of possessions and an approximate age of the possessions to submit to the carrier, but to also provide estimated replacement costs and an estimated Actual Cash Value you believe you are entitled to. Also provide input as to the quality, condition, use and care of possessions to minimize depreciation. Many possessions increase in value and should not be depreciated. Each claim is different – there is no set amount or average rate to be applied as depreciation. Supported costs to replace your possessions may exceed your limit – yet it may still be necessary to submit receipts to capture recoverable depreciation to resolve the PP portion of your claim. Best regards.