Should ALE cover moving expenses to move into a replacement house? Meghan Merrick asked 1 week ago
Should ALE cover moving expenses to move into a replacement house?

Allstate refused to place me in temporary housing that met my disability-related needs, despite my providing them with two letters from my healthcare providers explaining what accommodations were necessary in the temporary housing. Within a few months, my health was being severely impacted. Because Allstate was also fighting me tooth and nail over the scope of work and repair costs, I ultimately opted to purchase a different house instead. I simply could not remain in the temporary housing any longer.

I closed on the new house on August 13th, spent a few hours cleaning it, and then drove back to the temporary rental. I hired movers and completed the move on August 27th. Allstate is refusing to reimburse me for the moving expenses. Their explanation is that they claim I had already permanently relocated before the expenses were incurred, and therefore ALE had already ended.

From everything I have read, ALE should reimburse moving expenses, and a person is generally not considered to have permanently relocated until they, their household members, and their furniture and belongings are settled in the new home. Therefore, it seems to me that I could not have been permanently relocated until after the move—once my furniture and belongings were in the new house.

Based on that understanding, it appears that ALE coverage should include the moving expenses. Am I correct, and are there any industry standards that support my position? Does the insurance industry have a specific definition of “permanently relocated”?

I am considering bringing a small claims lawsuit against Allstate.

1 Answers
Daniel Veroff Daniel Veroff Expert answered 7 days ago
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Hi Megan,

Generally, Additional Living Expenses, sometimes referred to as “ALE”, reimburse you, the insured, for extra costs incurred when covered damages make your home uninhabitable and you are forced to relocate. In other words, it will pay for the difference between your previous living expenses and your new temporary expenses. This type of coverage is only triggered when your property is damaged by a covered peril. Typically, your policy will also include a covered limit based on time and/or dollar value, which will be defined in your policy declarations. Some policies will include language that states that payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. For example, a homeowner’s policy may only cover ALE up to 12 months after the date of loss or, if you relocate permanently, the shortest time required for your household to settle.

Common examples of what ALE may cover include hotel bills, temporary rent, restaurant meals (excess cost of), laundry, and increased commuting expenses.

It is important to keep in mind that what is and is not covered is policy dependent. This means that to determine whether something should be covered, you should always look to your insurance policy for what coverage you are afforded. Therefore, the determination of ALE coverage in a permanent relocation scenario depends on the specific policy language.

I am not aware of any industry definition defining “permanent relocation.”

Kindly, Dan