Loss of Use Disputes After Fire

Fire-damaged homes are often uninhabitable for months. Loss of Use / Additional Living Expense coverage pays the increased cost of living elsewhere, but carriers routinely try to cut ALE short. Documentation and period-of-restoration analysis protect the claim.

What ALE covers after fire

Hotel or rental housing above normal rent/mortgage
Meals above normal grocery budget
Storage of salvaged contents
Pet boarding
Additional transportation
Laundry and dry cleaning
Furniture rental for temporary housing
Utility hookups at temporary residence

Period of restoration

Runs from date of loss to the time the property is or reasonably should be restored for occupancy. Factors:

Structural repair timeline
Electrical, plumbing, HVAC restoration
Final inspection and C/O issuance
Odor clearance (smoke remediation often extends timeline)
Utilities restoration

Ocean Point Claims:structural vs cosmetic fire

Common carrier cutoffs

"Home is habitable" before actual livability
"Restoration timeline exceeded" without accounting for delays
"Expenses unreasonable": hotel rate, meal cost challenges
"Policy cap reached": 24-month cap on most policies

Documenting the period

Contractor's timeline (with milestones)
Daily progress notes
Final inspection and C/O record
Odor clearance testing
Utility restoration dates

Ocean Point Claims:contents pack out inventory

Documenting the expenses

Hotel receipts or rental lease
Meal receipts (or daily averaging)
Mileage logs
Pet boarding invoices
Storage unit receipts
Any "additional" costs with normal-cost netting

Extended ALE

Many policies offer extended ALE (30-60 days post-return) to cover setup and transition back. Often forgotten.