The named insured's home underwent a total loss. The insured wants coverage for a place to stay while his home is being rebuilt. The insured wants to know the scope of Loss of Use coverage, and exactly how many bags of M&Ms he can snag from the minibar.
Notable Timestamps
[ 00:25 ] - The insured also lives with his girlfriend, which may come into play later.
[ 01:00 ] - Are minibars even a thing anymore?
[ 02:23 ] - ALE is triggered when the insured premises is unfit to live in, and applies to any necessary increase in living expenses incurred to maintain its normal standard of living.
[ 03:50 ] - “Expenses” could include house rental, meals, drink, tips, transportation, heating, lighting, laundry, etc., but the insured must be able to show an increase in expenses.
[ 04:37 ] - ALE is not intended to cover a shortfall in personal property coverage.
[ 05:30 ] - ALE is analogous to Extra Expense under commercial policies, but Extra Expense can be more expansive.
[ 06:40 ] - Is alcohol a daily expense? ALE can include laundry, restaurants and tips, etc. if it can be shown the expense is more than normal.
[ 07:40 ] - The live-in girlfriend would be considered a member of his household, but ALE only applies to the insured's additional expenses.
[ 09:30 ] - In 2022, ISO added some language to allow ALE to cover expenses by residents of the household who are relatives or dependents.
[ 10:55 ] - The girlfriend may have to prove her residency.
[ 12:10 ] - ALE only applies when there is a covered cause of loss.
[ 13:10 ] - If the home is only partially fit to live in, an insured can still incur ALE. If the kitchen is uninhabitable, ALE may cover restaurants.
[ 14:30 ] - If a guest's visit was planned pre-loss, the insured's expenses for the guest may be covered.
[ 16:30 ] - Pet boarding expenses are also likely included in ALE expenses.
[ 17:35 ] - John provides a recap of the scenario and the points above.
Your PLRB Resources
PLRB, Homeowners Annot. Key HO37 - https://www.plrb.org/legacy-documents?DN=77
Adjuster Resource Sheet: ALE Claims - https://www.plrb.org/documents/adjuster-resource-sheet-ale-claims/
ALE or FRV: Insured Decides to Stay on Premises in Cottage But Loses Rent from Current Tenants - PCQ.2024.03.22.slc.a - https://www.plrb.org/documents/ale-or-frv-insured-decides-to-stay-on-premises-in-cottage-but-loses-rent-from-current-tenants-pcq-2024-03-22-slc-a/
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