The typical homeowners insurance policy has numerous types of coverage in it. One type of coverage that is common in such policies is additional living expense coverage.
ALE coverage covers certain living-expense-related costs (such as lodging costs) when a person has to vacate their home for a time because of certain events. One such event can be a forced/mandatory evacuation ordered due to a disaster, such as a wildfire.
So, when a disaster strikes in the area a person’s home is in, what damage was done to the home is not the only thing that can have impacts on whether the person has grounds for a claim on their insurance policy. Another is if any evacuation orders were issued in relation to the disaster.
Now, homeowners insurance policies can vary significantly in the kinds of coverage they have and the specific terms related to the particular types of coverage included in the policy. So, when a disaster or other impactful event happens in relation to their home, it can be important for a person to understand what kinds of coverage (such as what sort of ALE coverage) their policy includes. If they don’t, they could miss out on a claim their policy entitles them to make.
The specifics of a person’s homeowners policy can also be very impactful when a claim they submitted is denied by their insurer. What coverage a policy does and does not include are among the things that can dictate whether the insurer had proper justification for the denial. When an insurance company makes an unjustified claims denial, skilled attorneys can assist the denied policyholder with fighting for their rights under their policy and state law.
Source: NBC Southern California, “Homeowners Could Be Reimbursed for Sand Fire Evacuations Costs,” Randy Mac and Matt Schrader, July 26, 2016