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Storms are regular threats to Gulfport residents, and sometimes, families are forced to evacuate. When that happens, many homeowners assume their insurance will cover temporary housing and evacuation costs, but the reality is more nuanced.
When a home becomes uninhabitable due to storm-related damage or a mandatory evacuation order, certain policy benefits may apply – only under specific conditions.
For policyholders who are unsure about what their insurance can cover for alternative living expenses (ALE), our Gulfport insurance claim attorney at The Morgan Law Group can help clarify this and other confusing aspects of insurance claims.
What Do Evacuation Expenses Include?
Evacuation costs vary based on the severity of the event and the length of displacement. After a hurricane or severe storm, policyholders often face a range of out-of-pocket expenses just to maintain basic living standards.
Typical evacuation-related expenses include:
- Hotel or Rental Lodging Costs: When the home is unsafe or under repair.
- Increased Food Expenses: If families must dine out due to lack of cooking facilities.
- Transportation Costs: Fuel, mileage, or vehicle rental to relocate during an evacuation.
- Pet Boarding or Care: Temporary arrangements for animals when hotels or shelters don’t allow pets.
- Laundry Services and Utilities: Especially when staying in short-term accommodations.
- Storage Fees: For moving belongings out of a damaged or unsafe home.
- Temporary Relocation Setup: Deposits or fees related to short-term rentals.
These costs can add up quickly. Depending on your policy’s terms, some or all of these expenses may be reimbursable under provisions like Additional Living Expenses (ALE) or Loss of Use coverage.
Insurance Coverage for Evacuation Expenses in Gulfport
Mississippi homeowners and condo owners generally have insurance policies that include a Loss of Use or Additional Living Expense (ALE) provision. This section of the policy is designed to cover evacuation-related costs when the home becomes uninhabitable due to a covered peril, such as wind, fire, or water damage, not merely when evacuation is advised.
ALE coverage typically kicks in under two main scenarios:
Damage-Driven Displacement
If your home suffers direct physical damage from a covered event, like hurricane-force winds or a tornado, your ALE coverage can reimburse costs for temporary relocation. However, the key is that the damage must make the home “uninhabitable.” That could mean structural damage, mold risk, lack of electricity or plumbing, or other hazards that pose safety or health risks.
Mandatory Evacuation by Civil Authority
Mississippi insurers may also honor ALE coverage when a local authority orders mandatory evacuation due to damage in the area, even if your specific property is not damaged. This is known as “civil authority coverage,” and it generally applies for a limited duration.
However, ALE is not guaranteed for voluntary evacuations or events where the damage is from an excluded peril (like flood, in most standard homeowners policies).
What About Evacuation Costs Due to Flooding?
Flood damage is excluded from most homeowners and condo insurance policies. If you carry flood insurance through the National Flood Insurance Program (NFIP), be aware that NFIP policies do not include ALE or evacuation coverage. Some private insurers offer flood coverage that includes ALE, but this must be explicitly added.
ALE benefits are subject to time and monetary limits. Most insurance policies cap ALE to 12 months or a fixed dollar amount, whichever comes first. Others may provide a percentage of your dwelling or personal property coverage. Condo owners with HO-6 policies should review their policy closely, as ALE is often capped at 50% of personal property coverage.
Challenges with Evacuation Costs Insurance Claims in Gulfport, MS
While ALE and evacuation coverage offer peace of mind on paper, in practice, many policyholders face hurdles when trying to access these benefits.
Some of the most common issues encountered by homeowners include:
Denial of ALE Claims
Insurers may deny evacuation-related claims if they believe the home was still technically habitable, even if it lacked power or had minor damage. Mississippi courts and regulators recognize that “habitability” is a gray area, but many insurers interpret it narrowly. This can leave families covering costs out-of-pocket during lengthy repair periods.
Limited Coverage Windows for Civil Authority Orders
Even when ALE is approved due to a mandatory evacuation order, insurers often impose short time windows, such as 48–72 hours or 14 days. If your home remains unsafe after the order is lifted, you may have to file a new claim under different policy provisions.
Disputes Over Receipts and Documentation
Many ALE claims are delayed or underpaid because policyholders did not keep detailed receipts or cannot show that the expenses were directly tied to the displacement. Always keep dated receipts, proof of evacuation orders, and documentation of hotel stays, meal charges, and fuel use.
Gaps in Coverage Between Homeowners and Flood Policies
As mentioned, flood insurance from the NFIP doesn’t provide ALE. That means if your home was rendered uninhabitable due to floodwaters rather than wind or fire, your standard policy won’t help unless you have supplemental flood coverage that explicitly includes evacuation costs.
Delay Tactics
Delays in claim processing are another concern. If your insurer is taking weeks or months to process your ALE claim, you could be stuck paying for a hotel out-of-pocket in the meantime. This is why documenting the claim process and knowing your rights is so important. For those unsure how to respond to delays or denials, connecting with property damage attorneys familiar with Mississippi insurance disputes can be a crucial step.
Legal Rights of Policyholders Under Mississippi Insurance Laws
Mississippi state insurance law requires insurers to act in good faith when evaluating claims. Insurance companies must process claims promptly and fairly. If they fail to do so, such as by wrongfully denying an ALE claim or failing to respond within a reasonable period, they can face penalties, including the possibility of paying attorney’s fees or additional damages.
The Mississippi Insurance Department also mandates transparency in policy language. Homeowners must be given clear disclosures about what’s covered and what’s not. This includes clearly defining what triggers ALE and whether civil authority coverage applies.
If your policy lacks this information, or if your insurer gave conflicting explanations, you may have grounds to dispute the denial.
If you’re unsure whether your current policy covers evacuation-related losses, now is the time to review the details. The same applies to any recent claims, especially those tied to common homeowners insurance claims, like hurricane damage or fire.
And if you’re already in the claims process, take the time to understand each step involved in filing a home insurance claim. Being proactive can help avoid delays or denials based on technicalities.
Need Legal Help to Claim Evacuation Costs to Your Insurance?
Understanding your insurance coverage for evacuation expenses is essential. Whether your home was damaged by wind or deemed unsafe due to an evacuation order, your homeowners or condo insurance may entitle you to reimbursement under Additional Living Expenses or civil authority provisions.
But just because you’re entitled doesn’t mean it’s easy to recover what you’re owed. Policy exclusions, limited coverage windows, and strict documentation requirements can all stand in the way.
If you have disputes with your insurance claim, speaking with an experienced insurance attorney in Gulfport can help you understand your next move. Our team at The Morgan Law Group has extensive experience advocating for Mississippi policyholders facing insurance disputes after storms, floods, fires, and more.
Call us today at (228) 567-4633 or contact us using our online form for a free consultation about your insurance claim at our office in Gulfport.
