Wildfires in the US highlight need for insurance coverage

Increasing wildfire activity across the United States is highlighting the importance of comprehensive homeowners insurance. According to the National Interagency Fire Center, firefighters responded to 52,939 wildfires burning over 8.2 million acres this year, reaching 125% of the 10-year average.

Experts emphasize the need for 'loss of use coverage,' also known as additional living expense (ALE) coverage. This provision is designed to reimburse out-of-pocket costs such as temporary housing, meals, transportation, and pet boarding when a home becomes unlivable due to a covered peril.

Many insurance policies cap ALE at a specific percentage of the dwelling coverage limit, typically between 20% and 30%, though some carriers use flat limits. Understanding these limits is critical for families facing long-term displacement from fires in regions ranging from California and Oregon to Oklahoma, Nebraska, Florida, and Georgia.