ALE Justification
What determines a home to be uninhabitable?
No running water, no power (in 90-100+ degree weather)
Be mindful of uninhabitable v. uncomfortable
https://liberty-mutual.egain.cloud/kb/plpropertyfield/content/HELP-155957/Additional-Living-Expense-ALE-Claim-Handling-Guidelines-Home-Page?query=ale%20
Who do I call to set up ALE?
The insured
- to establish the reasonable daily cost of housing based on their family/needs/current standard of living and inform them of the need to retain receipts/incur the expense
When should inspection be scheduled for a water event?
Post-mitigation whenever possible
Can I start my estimate before onsite inspection?
Yes
If mitigation has completed work, they should upload their estimate for review to our MIT team. You may review their estimate for scope of demo to prepare your estimate accordingly for onsite inspection/verification/settlement.
How do I determine how long of temporary housing is needed?
What is the reasonable length of repairs (if length of repairs is unknown, estimate the most suitable length of time needed)
https://liberty-mutual.egain.cloud/kb/plpropertyfield/content/HELP-155957/Additional-Living-Expense-ALE-Claim-Handling-Guidelines-Home-Page?query=ale%20
What determines a home to be uninhabitable?
no functional bathroom, structural damage
How do we reimburse ALE expenses?
Via PYW Cov D after receipts are provided
How can a sketch be completed prior to inspection?
- Sending a Guided Photo Capture (PLNAR) assignment to the insured
- Requesting the MIT PV to complete a sketch
What vendors are available to assist for water claim?
- Water MIT (drying)
- Furniture Medic (cabinetry)
- Prism (electronics)
- ALD (manager approval) (leak detection)
- HVACi (HVAC diagnosis/repair)
- Tradepro (flooring/drywall)
- Paul Davis Restoration (mitigation/rebuild)
What documentation is needed for ALE due to order by civil authority?
Published evacuation order
(typically available online)
When is meal reimbursement necessary?
No functional kitchen
Meal reimbursement is not justified when temporary housing is used as the housing should provide a kitchen
What ALE is available for landlords?
Loss of Rent
What can you ask to determine cause of loss?
- "Do you have a plumber's report?"
- "What happened?"
- On inspection, immediately locate and photograph cause/origin of loss
https://liberty-mutual.egain.cloud/kb/plpropertyfield/content/HELP-169364/Water-Process-Guide
What photos should be taken inside the home?
Cause/origin of loss, serial number of failed appliance, overview of affected rooms, closeups (wall texture, base trim, flooring, crown molding, door casings, windows, cabinets, toekicks, inside of cabinet drawers, light fixtures).
Does ALE apply for an order by civil authority?
Yes
- though this coverage only applies for two weeks
How is reasonable daily rate determined?
Average hotel cost is $150.00/night
If there are children, this would justify a 2nd bedroom each night.
If there are dogs/pets, this would justify pet care or further justify cost reasonableness for an Airbnb v. a hotel
What documentation is needed to justify loss of rent payment?
Signed lease agreement, written communication to tenant regarding waiver of rent for period claimed, timeline of repairs
What types of water losses do I need to carefully review policy provisions/limits?
Sump pump, mold, ground/surface water, continuous/repeated seepage
What will expedite settlement of a water claim?
Completing the estimate while in the house
Mobile Itel kit (typically for carpet only)
(bring tripod/laptop holder)
If an insured is absolutely unable to incur the expense of temporary housing, what do I do?
.....
When does the policy owe for ALE?
When the house or part of the house is uninhabitable -- when expense is incurred by the insured.
"If a loss covered under Section I makes that part of the "residence premises" where you reside not fit to live in, we cover any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living."
What ALE expenses are reimbursable?
hotel, rental home, meal reimbursement (if no temp housing or kitchen available), pet boarding, laundry expenses (if in hotel)
What action should be taken if an insured refuses water mitigation?
Send an H07 letter (refusal of water mitigation)
- In scenarios where water mitigation is needed to protect the property from further damage, offer water mitigation services. If it is refused by the insured, immediately send the HO7 letter.
What questions should I ask to identify subrogation potential?
What caused the loss?
Have you have had any recent work in the vicinity?
Any past problems/repairs?
Is it from an appliance?
How old is the appliance?
https://liberty-mutual.egain.cloud/kb/plpropertyfield/content/HELP-166775/Property-Subrogation-Best-Practices
How do you determine the Fair Rental Value of an insured's home?
- Generate a FRV report from Symbility assignments
- This is typically utilized if an insured is staying with family/friends to determine an amount reasonable to pay for their temporary housing
-- these arrangements should be more cost reasonable than a hotel/airbnb if considered