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Pay monthly premium for Additional Living Expense?

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RegPlus

Active Member
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.
 


adjusterjack

Senior Member
Do I need to keep paying the monthly premium in order to get Additional Living Expense from Liberal Mutual?
No, it's included in your policy premium.

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?
It's a reimbursement coverage. You have to incur the expenses and submit receipts to get paid for them though insurance adjusters often have the option of sending an advance. I had plenty of policyholders forced out of their homes due to serious damage and I routinely advanced them a thousand or two for immediate expenses.

I stopped paying the insurance company on December 1st, 2018 because I'm pissed off at them
That was foolish. Why are you pissed off at them?

My house depreciated to $6,000. Standard Policy, Coverage, Dwelling 236,000. The policy....
How does a 236,000 house depreciate to $6000?

You're going to have to explain that.
 

RegPlus

Active Member
No, it's included in your policy premium.



It's a reimbursement coverage. You have to incur the expenses and submit receipts to get paid for them though insurance adjusters often have the option of sending an advance. I had plenty of policyholders forced out of their homes due to serious damage and I routinely advanced them a thousand or two for immediate expenses.



That was foolish. Why are you pissed off at them?



How does a 236,000 house depreciate to $6000?

You're going to have to explain that.
They did the examination under oath, just because I am paying a very high monthly premium ($270) for a $6,000 house.

It was $24,000 in 1930's... now the house is worth $6,000.
I told them that I didn't know that I was paying too much for insurance for that house.

Can I ask them to pay me $40,000 of ALE without the receipt? Since the hotel or apartment rent cost a lot? Uber and storage fee and food? It would be hard to find a contractor since it is winter... it is snowing in Illinois. May have to wait until spring for that contractor to come over.
 

adjusterjack

Senior Member
It was $24,000 in 1930's... now the house is worth $6,000.
What the house is "worth" to buy or sell is not what the insurance covers. The insurance covers the cost to repair it or rebuild it at today's construction costs.

Can I ask them to pay me $40,000 of ALE without the receipt?
You can ask, but no adjuster in his right mind is going to do it.

It would be hard to find a contractor since it is winter... it is snowing in Illinois. May have to wait until spring for that contractor to come over.
That's probably not going to fly. Contractors don't close their businesses in the winter. They'd go bankrupt.

Gonna need to know what happened to your house.

And why the examination under oath?
 

RegPlus

Active Member
What the house is "worth" to buy or sell is not what the insurance covers. The insurance covers the cost to repair it or rebuild it at today's construction costs.

How Your Payment Was Calculated
We want to make sure you understand how we arrived at your payment amount.
Here’s how we calculated it:

$ 21,977.82 Dwelling/Home
$ (122.66) Less other (This amount includes debris removal, among
other expenses. Coverage for debris removal is for your
actual cost incurred.)
$ (14,693.78) Less applicable recoverable depreciation
$ (1,000.00) Less applicable deductible
$ 6,161.38 Amount paid

You can ask, but no adjuster in his right mind is going to do it.

Well I paid storage fee online. I can copy those past payments.
I have bank statement
Emailed receipt of me using Uber to go to the restaurant, travel from the temporary home to restaurant and grocery.
since the grocery in illinois is just 3 blocks away.
I owed my mother's house rent. She bought most of the food for me...
Will the Adjuster pay me what I owe or no???





That's probably not going to fly. Contractors don't close their businesses in the winter. They'd go bankrupt.

Well I left messages to 10 contractors and only one responded. And I don't know if I will reach him again.



Gonna need to know what happened to your house.

The house was sprayed with paint and dirt.

And why the examination under oath?

I guess the adjusters were suspicious of me. I don't know.
 
Last edited:

Shadowbunny

Queen of the Not-Rights
You're giving us information in disjointed bits and pieces. Any chance you could start from the beginning? Because you say your house was "sprayed with paint and dirt." Paint and dirt generally doesn't mean that you can't live there. So start from the beginning.
 

RegPlus

Active Member
You're giving us information in disjointed bits and pieces. Any chance you could start from the beginning? Because you say your house was "sprayed with paint and dirt." Paint and dirt generally doesn't mean that you can't live there. So start from the beginning.
Well if the damage is worth from $6,000 to $20,000... then you should know how bad it is.

Insurance wouldn't pay $6,000 if I only need to sweep and clean off the paint from the wood floor, ceiling, tub, sink, cabinet and windows. That will take days. The contractor won't do it for $6,000.
 

Zigner

Senior Member, Non-Attorney
Well if the damage is worth from $6,000 to $20,000... then you should know how bad it is.

Insurance wouldn't pay $6,000 if I only need to sweep and clean off the paint from the wood floor, ceiling, tub, sink, cabinet and windows. That will take days. The contractor won't do it for $6,000.
Really? Your answer to a request for more detailed information from a volunteer who is trying to help you is a snarky comeback? Way to endear yourself there.
 

RegPlus

Active Member
Really? Your answer to a request for more detailed information from a volunteer who is trying to help you is a snarky comeback? Way to endear yourself there.
I don't know what happened. All I know I was knocked down and woke up with all the mess. When I said there are dirt and paint everywhere throughout the house... I think they used paint gun and dirt leaf blower.
 

adjusterjack

Senior Member
Now we are getting somewhere. I've been down this road hundreds of times.

The $ 21,977.82 is not the value of your home (nor is the $ 6,161.38).

The $ 21,977.82 is the estimated cost to repair the damage to your house.

The $ 6,161.38 is the FIRST payment to you after adjusting for RECOVERABLE depreciation and your deductible.

Note the word RECOVERABLE. Your Replacement Cost coverage allows the insurance company to pay the depreciated amount of the repair cost up front and pay you the balance of the repair cost when you have completed the repairs and submitted the receipts or paid invoice from the contractor. The policy is written like that to make sure repairs actually get done and get done properly.

Find yourself a contractor who routinely works insurance claims and he will know how to get a down payment from you to start the repairs and coordinate with your insurance company as to getting paid when the repairs are done. Your insurance company might even be willing to allow a draw down of the balance in increments while various stages of work is being completed. No guarantees, of course, but it's not unheard of.

As for your $1000 deductible, well, you bought the policy that way so whatever the repairs cost you spend $1000 of your own money toward them.

Well I paid storage fee online. I can copy those past payments.
I have bank statement
Emailed receipt of me using Uber to go to the restaurant, travel from the temporary home to restaurant and grocery.
since the grocery in illinois is just 3 blocks away.
I owed my mother's house rent. She bought most of the food for me...
Will the Adjuster pay me what I owe or no???
Assuming you can properly document those expenses there should be no reason why your Additional Living Expenses wouldn't cover them though I would probably some issue with whatever your mother provided for you. All you can do is submit your documentation to the adjuster and see how it goes.

I strongly suggest you resume paying for your insurance and hope the coverage hasn't lapsed. There is nothing wrong with what the insurance company is doing. Maybe you'll realize that now that you understand it better.

And why the examination under oath?
I guess the adjusters were suspicious of me. I don't know.
Probably a good guess now that you've explained what happened. Probably was a scary and inconvenient, but it happens sometimes, and your claim is getting paid anyway.
 

Zigner

Senior Member, Non-Attorney
I strongly suggest you resume paying for your insurance and hope the coverage hasn't lapsed.
Just for clarification: Since this event was covered when it happened, wouldn't all costs associated with the claim be covered, regardless of whether or not the insurance policy remained in force after the event?

For example, pretend that I got in to a very minor car accident on May 30th and everyone went away saying everything was good, no harm, no foul, etc. Of course, that evening, I contacted the insurance company to tell them what happened, even though I wasn't filing a claim. Then, on June 1st, I switch to a new auto insurance company. THEN, on June 23rd, I get notified that the other party is claiming all sorts of injuries as a result of our accident. Wouldn't my former insurance company be obligated to pay for my defense, etc.?
 

adjusterjack

Senior Member
Zigner, the answer is yes to both your questions.

My admonition has more to do with future claims and insurance costs if a lapse occurs.
 
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