Registered Insurance Brokers of Ontario (RIBO) Practice Exam

An Additional Living Expenses (ALE) claim is typically tied to situations where an insured home becomes uninhabitable due to a covered peril under the homeowners policy. In the case of an infestation of carpenter ants, this situation generally falls under the category of maintenance issues or pest control rather than an insurable risk. Homeowners insurance typically does not cover damages that arise from lack of maintenance or wear and tear, and infestations are often viewed as issues that the homeowner could have prevented or addressed through regular upkeep.

In contrast, damage from fire, storm-related issues, or water damage from a burst pipe would be considered covered perils under a Comprehensive homeowners policy. These scenarios involve sudden and unforeseen damages, which are typically the types of incidents that justify additional living expenses while repairs are made to the home. This distinction underlines why the infestation of carpenter ants would lead to the disallowance of an ALE claim, as it is not a qualifying cause that necessitates temporary relocation from the home.