If an insured chooses to apply the Additional Living Expense option of the Dwelling Policy Basic Form, how will it affect Coverage A - Dwelling limit?

Choosing the Additional Living Expense (ALE) option under the Dwelling Policy Basic Form does not impact the Coverage A – Dwelling limit. Coverage A pertains specifically to the physical structure of the insured property, such as the dwelling itself, and the limits established for this coverage are independent of any optional coverages selected, including ALE.

The ALE coverage is designed to assist the insured with their additional expenses incurred when they cannot live in their home due to covered damages. These expenses could include costs for temporary housing, meals, and other necessary living costs above normal living expenses. Since this coverage is intended to supplement living costs rather than alter the value of the dwelling structure itself, the limit for Coverage A remains unchanged when ALE is selected.

This clarification helps to differentiate between the types of coverage within the policy, reinforcing that expenses associated with temporary living arrangements do not reduce, increase, or remove the value allocated to the dwelling under Coverage A.