Storage Options: Managing and Claiming Storage Costs Under ALE Coverage
When a home becomes uninhabitable due to damage or necessary repairs, temporary housing may not have enough space to accommodate all your belongings. Storing items securely off-site can help protect Personal Property and reduce clutter in temporary accommodations. Loss of Use / Additional Living Expenses (ALE) coverage may help cover the cost of storage, easing the financial burden during your displacement.
This article explores what ALE covers for storage options, how to document and claim these costs, and tips for managing storage during your temporary relocation.
Why Consider Storage Options Under ALE?
Protection for Personal Belongings: Storing items securely reduces the risk of further damage and keeps your belongings safe during the repair period.
Organization During Displacement: Storage options help you organize your living space by keeping non-essential items out of the way, making temporary accommodations more comfortable.
Financial Support for Storage Costs: ALE can cover storage fees, reducing the out-of-pocket expense of safeguarding personal property while awaiting the completion of home repairs.
Types of Storage Options Covered by ALE
Self-Storage Units:
Coverage: ALE may cover the rental cost of a self-storage unit, which provides a secure space for personal belongings that won’t fit in temporary housing. These units come in various sizes to accommodate different storage needs.
Considerations: Save rental agreements and monthly invoices for your storage unit. ALE typically covers the cost of storage only if it’s necessary due to the lack of space in your temporary accommodations.
Examples: If renting a storage unit costs $100 per month, ALE can reimburse this expense for the duration of your displacement.
Portable Storage Containers:
Coverage: ALE may cover the cost of portable storage containers, such as PODS or U-Haul’s U-Box. These containers can be delivered to your home, allowing you to pack them at your own pace. Once packed, they’re transported to a storage facility or your temporary residence.
Considerations: Confirm with your insurer if there are limits on the rental duration or container size. Keep records of the rental costs and any additional fees for delivery, transport, or pickup.
Examples: If renting a portable storage container costs $200 per month, ALE may reimburse this amount as part of your temporary storage needs.
Climate-Controlled Storage Units:
Coverage: ALE may cover the additional cost of a climate-controlled storage unit for items sensitive to temperature or humidity changes, such as electronics, artwork, or antiques.
Considerations: Climate-controlled units typically cost more than standard storage. Discuss with your insurer if ALE covers the extra cost for these units, especially if the stored items have high value or are prone to damage from extreme temperatures.
Examples: If a climate-controlled unit costs $150 per month and your usual storage cost would be $100, ALE may cover the additional $50 if the controlled environment is necessary for protecting valuable items.
Specialty Storage Facilities:
Coverage: ALE may cover specialty storage facilities, such as wine storage, vehicle storage, or secure facilities for high-value items, if needed due to temporary relocation.
Considerations: Specialty storage is typically more expensive, so confirm coverage with your insurer. Keep documentation of the stored items and why specialty storage is necessary for your displacement.
Examples: If a specialty wine storage unit costs $80 per month, ALE may cover this expense if the storage is necessary and pre-approved by your insurer.
Steps to Documenting and Claiming Storage Costs Under ALE
Review Your Insurance Policy:
Understand ALE Coverage for Storage Options: ALE policies may have specific limits or restrictions on storage expenses. Review your policy to understand what’s covered and any potential exclusions.
Confirm Eligible Storage Facilities: Discuss eligible storage facilities with your claims adjuster. Some ALE policies may limit coverage to basic self-storage units, so clarify specifics if you need climate-controlled or specialty storage.
Track and Document All Storage Expenses:
Save Rental Agreements and Monthly Invoices: Keep a detailed record of all storage unit rental agreements and monthly invoices on Loti. These documents are essential for ALE reimbursement, as insurers require proof of expense.
List Items in Storage if Necessary: For higher-value or specialty items, create an inventory list for your stored belongings. This can help substantiate the need for specific storage options under ALE.
Submit Claims for Reimbursement:
File a Claim with Supporting Documentation: Submit receipts, invoices, and rental agreements for storage costs to your insurer using Loti’s automated Submission forms. Include any itemized lists of stored belongings if required by your policy.
Include Both Usual and New Costs if Applicable: If you typically use storage and the cost has increased due to displacement, document your regular storage expenses alongside the increased costs to clarify the need for ALE coverage.
Additional Tips for Managing Storage During Displacement
Choose the Right Size Unit: Assess your storage needs and select a unit size that accommodates your belongings without paying for extra space. Most storage facilities offer guidance on sizing based on the quantity and type of items you need to store.
Opt for Multi-Purpose Storage Containers: Portable storage containers are ideal for those who want to pack at home and have the flexibility of moving the container to various locations. They can be more convenient than a fixed storage unit if you anticipate needing frequent access to stored items.
Plan for Climate-Sensitive Items: If you have items like electronics, artwork, or musical instruments, consider climate-controlled storage to prevent potential damage. Discuss this option with your insurer to confirm if ALE covers climate control costs.
Communicate with Your Insurer Regularly: Notify your claims adjuster if your storage needs change, such as if repairs extend the duration of storage or if you need to switch to a different unit type. Clear communication helps ensure continuous ALE coverage and avoids unexpected expenses.
Understanding Reimbursement and Next Steps
Submit Detailed Expense Reports: Provide itemized receipts and supporting documentation for all storage costs. Include rental agreements and invoices, especially if you’re using specialty storage.
Monitor Your Claims: Stay in contact with your insurance provider to track the status of ALE claims. Many insurers assign representatives to assist with ALE claims and provide guidance on storage expense coverage.
Prepare for Extended Storage Needs: If repairs take longer than expected or if you need to transfer items to a new unit, discuss extending ALE coverage with your insurer to avoid out-of-pocket costs.
Wrap-Up
Storage options play a critical role in keeping your belongings safe and organized when relocating to temporary housing during home repairs. By understanding your ALE coverage, tracking storage expenses, and maintaining communication with your insurer, you can ensure smooth reimbursement and minimize financial stress during this challenging time.
Whether it’s covering a self-storage unit, portable container, or climate-controlled space, Loss of Use / ALE provides essential support for safeguarding your belongings while you await your home’s return to livable conditions.