As a home owner in Maine, home insurance is essential for coverage of property damage, loss of possessions, liability and additional living expenses (ALE) in case you need to relocate after a disaster while your home is being repaired or rebuilt. Property damage covers you for up to 16 perils, including fire, lightning, explosion, smoke, vandalism, theft and volcano. Flood and earthquake are not usually included and need to be purchased separately.
A major problem after a disaster is where to go if your home is in disrepair, uninhabitable or it has been destroyed. With ALE coverage the insurer pays for certain expenses such as hotel accommodation bills and restaurant meals. The amount of coverage depends on your policy. The Insurance Information Institute claims that it is often 20% of the value of the insurance on your house, so if your house is insured for $200,000, additional living expense coverage would be $40,000. Should you have part of your house normally rented out, ALE also covers lost rent as a result of the disaster.
When shopping for Maine home insurance, check out the ALE coverage in detail so that you understand exactly how it works and for how long. More information regarding home and other insurance in general can be found at the Maine Bureau of Insurance.