Is it covered? Know for sure.
When your home is severely damaged, be sure you understand what is and is not covered under your homeowner’s policy prior to taking on any significant expenses. Find out the amount of coverage for ALE under your homeowner’s policy and if there are any time limits for receiving reimbursement. Many policies provide ALE coverage as a percentage of the total amount of insurance on the home, typically 10 to 20 percent. In other words, if your home is insured for $250,000 and your policy has a 20 percent cap on ALE coverage, you are entitled to up to $50,000 in expenses.
It’s imperative you budget appropriately.
If you reach your policy’s ALE cap prior to being able to return to your home, you will be responsible for the remainder of all expenses. If in doubt, contact an experienced insurance lawyer to review your policy and help you understand your rights.