Do I need to keep paying the monthly premium in order to get Additional Living Expense from Liberal Mutual?
I read that "Generally, home insurance caps additional living expenses to a portion of the dwelling coverage, typically 20 percent, Swerling says, and sets a time limit, such as 12 months. So if your home is insured for $200,000, then you have up to $40,000 to spend on additional living expenses. Once the 12th month ends, though, the money disappears".
"Be aware of is the policy limit for Additional Living Expense. ALE coverage is usually based on the amount of insurance you carry on your home (Coverage A value). It may be capped at a percentage of your dwelling limit, most commonly 20 percent of Coverage A. For example, if your home is insured for $250,000, you could have up to $50,000 for additional living expenses."
Do I get the whole check of $40,000 or $50,000 at once while I wait for the house to be repaired? Do I get nothing?
My house is in Illinois. I stopped paying the insurance company on December 1st, 2018 because I'm pissed off at them. My house depreciated to $6,000. Standard Policy, Coverage, Dwelling 236,000. The policy....
COVERAGE D - Loss Of Use
The limit of liability for Coverage D is the total limit
for all the coverages that follow.
1. If a loss covered under this Section makes that
part of the "residence premises" where you
reside not fit to live in, we cover, at your
choice, either of the following. However, if the
"residence premises" is not your principal place
of residence, we will not provide the option
under paragraph b. below.
a. Additional Living Expense, meaning any
necessary increase in living expenses
incurred by you so that your household
can maintain its normal standard of living;
or
b. Fair Rental Value, meaning the fair rental
value of that part of the "residence
premises" where you reside less any
expenses that do not continue while the
premises is not fit to live in.
Payment under a. or b. 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.
2. If a loss covered under this Section makes that
part of the "residence premises" rented to
others or held for rental by you not fit to live
in, we cover the:
Fair Rental Value, meaning the fair rental
value of that part of the "residence premises"
rented to others or held for rental by you less
any expenses that do not continue while the
premises is not fit to live in.
Payment will be for the shortest time required
to repair or replace that part of the premises
rented or held for rental.
3. If a civil authority prohibits you from use of the
"residence premises" as a result of direct
damage to neighboring premises by a Peril
Insured Against in this policy, we cover the
Additional Living Expense and Fair Rental Value
loss as provided under 1. and 2. above for no
more than two weeks.
The periods of time under 1., 2. and 3. above are
not limited by expiration of this policy.
We do not cover loss or expense due to
cancellation of a lease or agreement.
I read that "Generally, home insurance caps additional living expenses to a portion of the dwelling coverage, typically 20 percent, Swerling says, and sets a time limit, such as 12 months. So if your home is insured for $200,000, then you have up to $40,000 to spend on additional living expenses. Once the 12th month ends, though, the money disappears".
"Be aware of is the policy limit for Additional Living Expense. ALE coverage is usually based on the amount of insurance you carry on your home (Coverage A value). It may be capped at a percentage of your dwelling limit, most commonly 20 percent of Coverage A. For example, if your home is insured for $250,000, you could have up to $50,000 for additional living expenses."
Do I get the whole check of $40,000 or $50,000 at once while I wait for the house to be repaired? Do I get nothing?
My house is in Illinois. I stopped paying the insurance company on December 1st, 2018 because I'm pissed off at them. My house depreciated to $6,000. Standard Policy, Coverage, Dwelling 236,000. The policy....
COVERAGE D - Loss Of Use
The limit of liability for Coverage D is the total limit
for all the coverages that follow.
1. If a loss covered under this Section makes that
part of the "residence premises" where you
reside not fit to live in, we cover, at your
choice, either of the following. However, if the
"residence premises" is not your principal place
of residence, we will not provide the option
under paragraph b. below.
a. Additional Living Expense, meaning any
necessary increase in living expenses
incurred by you so that your household
can maintain its normal standard of living;
or
b. Fair Rental Value, meaning the fair rental
value of that part of the "residence
premises" where you reside less any
expenses that do not continue while the
premises is not fit to live in.
Payment under a. or b. 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.
2. If a loss covered under this Section makes that
part of the "residence premises" rented to
others or held for rental by you not fit to live
in, we cover the:
Fair Rental Value, meaning the fair rental
value of that part of the "residence premises"
rented to others or held for rental by you less
any expenses that do not continue while the
premises is not fit to live in.
Payment will be for the shortest time required
to repair or replace that part of the premises
rented or held for rental.
3. If a civil authority prohibits you from use of the
"residence premises" as a result of direct
damage to neighboring premises by a Peril
Insured Against in this policy, we cover the
Additional Living Expense and Fair Rental Value
loss as provided under 1. and 2. above for no
more than two weeks.
The periods of time under 1., 2. and 3. above are
not limited by expiration of this policy.
We do not cover loss or expense due to
cancellation of a lease or agreement.
