ALE and FRV are standard coverages in homeowner's insurance
policies. These coverages deal with addressing the insureds costs of temporary
living accommodations while they cannot live in their home or apartment.
| During the initial inspection, the adjuster should be
prepared to explain all coverage aspects of the loss, including those
afforded under Coverage D, Loss of Use. Since the insured may choose
to be indemnified using either the ALE or FRV approach, the adjuster
must be well versed in describing, as well as adjusting, both methods
of loss valuation. Depending upon the particular circumstance, one
method may offer greater compensation and flexibility than the other.
The insured is likely to choose the method of settlement considered
most suitable or advantageous. |
 |
This module in the ALE/FRV series will explain some of the adjustment issues
involved in these claims. |
