What is Additional living expense insurance ?
Definition of Additional living expense insurance
Additional living expense insurance can be defined as coverage under a home, condominium owner or a renter’s additional insurance policy that covers the additional costs and living charges that are incurred by the policy holders in case they are displaced from their rented or owned property which is currently under their occupation.
Brief Explanation of Additional living expense insurance
The additional living expense insurance usually covers 10 to 20% of the insurance amount that comes under the dwelling costs. Generally the additional living expense can cover things like the monthly bills of food and accommodation because the policy holder could not use their residential property or have rented out a part of it to the tenant. Any loss of income incurred under the abovementioned circumstances would also be covered in the insurance policy. Also if the residents are displaced from their property due to natural disasters like fire or flood then in that case all the extra expenses would be paid for under the additional living expense insurance. This, this insurance policy could help support the policy holders to pay for any extra costs incurred due to living elsewhere when the residential property could not be used on short term basis.