ALE Valerie Richard asked 1 year ago
ALE

My insurance company, Country Financial, is covering my ALE until the end of 2023, two years to the date of the Marshall fire. I stayed with a friend the first 6 weeks, and was paid $1500 towards that first 6 week period, which I gave to my friend. I moved into a long term rental after that first 6 weeks, and CF pays the $2600 monthly rental on that, per a 6 month lease at at time. My policy lists a total amount of ALE they will pay me, and my adjuster says that my ALE is up after 2 years.

The total amount in my ALE bucket, according to CF, will still have funds after the 2 year mark occurs, approx. $8000. My house is not estimated to be completed until Jan or Feb, which means it will probably be later than that. I will need that $8000 to cover rent during that time – am I entitled to it?

My adjuster says they will pay what the lease says through the end of 2023. Do I need to ask my landlord to change the lease to include the additional $8000 somewhere? Thank you.

1 Answers
Michael Stoycheff Michael Stoycheff Expert answered 1 year ago
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Valerie,

The affirmative answer is yes, however, there are caveats to that. The adjuster is right that the policy limits the ALE for 24 months. However, the Colorado Division of Insurance issued Bulletin No. B-5.42 asking that Carriers extend coverages beyond those limits if certain circumstance exist that out of the policy holders control. The bulletin reads as follows:

“In the event of a catastrophic disaster, an insurer shall act in good faith and shall consider any adverse circumstances beyond the insured’s control that may require maintaining and extending certain policyholder benefits beyond those afforded by the timelines provided in the underlying insurance policy.

In determining whether certain policyholder benefits should be extended, the insurer shall take into account all of the circumstances affecting the claim including those not directly caused by the catastrophic disaster. Such circumstances include, but are not limited to, seasonal weather issues, labor and material shortages, and insurer delays in providing estimates and actual cash value payments.”

You can find the bulletin online or through the UP website as well. The easiest way to get the extension is to have your builder/GC prepare a final construction schedule with the anticipated date of completion. Submit that to your adjuster with the request for the extension. My experience with CF is that they will honor the request of they receive the proper documentation.