Additional living expenses

What are additional living expenses?

They are out-of-pocket expenses you have to pay for food and accommodation, and to relocate if you can no longer stay in your home following a loss covered under your policy.

Reminder:

  • The loss must be COVERED UNDER YOUR POLICY to qualify for reimbursement of additional living expenses.
  • The reimbursement of additional living expenses is subject to a MAXIMUM AMOUNT.
  • TALK to your insurer to find out about the maximum reimbursement amount.


Additional living expenses apply for example when: 

  • Your house or apartment is damaged and is unlivable.  
  • Your apartment and belongings were not damaged, but you can’t stay because the building was damaged.
  • You were told to evacuate the premises, or the authorities won’t allow you back into your house or apartment, even if you suffered no damage.
  • You can’t take your pet to your temporary accommodation and need to pay for its boarding expenses.

You’re now paying out-of-pocket for accommodation and food expenses

It normally costs you $100 a day for food and accommodation. Because of the loss, you’re now paying $200 in hotel and restaurant expenses.

The insurer will reimburse you the additional $100 ($200-$100) you pay.

Duration of additional living expenses

  • Evacuation order:  these expenses will be reimbursed for a maximum period of 14 days if the peril prevents you from staying in your home or prevents you from accessing your home if the peril is covered under your insurance policy. 
  • Loss suffered: if the loss is covered under your insurance policy, the additional living expenses will be covered for a reasonable duration to allow your home to be made livable, subject to the insurance limit under the policy.
  • State of emergency: the insurance policy does not provide for the reimbursement of expenses in case of an emergency, if no evacuation order is issued or if you have not suffered damage.  

Finding it difficult to come up with the out-of-pocket living expenses for accommodation and food? 

Talk to your insurer about your situation. He will probably be able to help you.  

Have you suffered damage?

  • CONTACT your insurer or broker right away to check what your insurance policy covers and to open your claims file as quickly as possible.
     
  • TAKE STEPS to prevent any further damage to your home.
     
  • KEEP RECEIPTS for all expenses incurred, whether for accommodation or meals, or for your home.

Download the PDF version of this article.

 

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