ALE after the 2 year mark– when none has been used due to Bldg Dept delay in permits s.french asked 5 months ago
ALE after the 2 year mark– when none has been used due to Bldg Dept delay in permits

I had a partial loss as a result of the CZU Fire and my home has structural damages to the roof and exterior walls. However, the building department has stalled/ delayed permits, and I have continued to live in my house with only temporary mitigation repairs until the permits issues is resolved. I will have to move out during construction as I have a very tiny 2-bdrm 700 sq ft home on a steep hillside.

I have not incurred or submitted claim for any ALE as yet, but I am now at the 2 year mark.

How do I approach my (generally uncooperative) claims adjuster. I want to negotiate that I will have at LEAST 6 months ALE once construction begins– but there are multiple reasons for delays beyond my control. HELP!

2 Answers
Don A. Lesser, Esq. Don A. Lesser, Esq. Expert answered 4 months ago

Insurance Code Section 2051.5(c)(2) specifies the maximum period of time, i.e., up to 36 months, for which you must be provided Additional Living Expense coverage, provided you actually incur those expenses for that long a time and there is good cause for the delay in re-building. Note that the period the statute specifies it is NOT a deadline by which you must make your claim for ALE. So the fact that you have continued living in the home until the repairs begin should not be an obstacle to recovering the ALE you incur once you have to move out.

Unless your insurer has paid everything it claims it owes you, sent you a letter notifying you of your deadline to sue them for any amounts they have refused to pay, and that deadline has passed — which seems very unlikely — you should be able to recover the ALE you incur once the repairs begin, and the carrier should not object to paying those expenses based on your decision to keep living in the home.

Answer for ALE after the 2 year mark– when none has been used due to Bldg Dept delay in permits United Policyholders Staff answered 4 months ago

Hi Sidney,

If you need more time you can also write to your insurer to request an extension, since you are entitled to up to 36 months in California as Don mentions.

We have a letter on our website to request an extension that you can modify to suit your situation. Here is a link to that letter: Sample Letter Requesting Extension of Additional Living Expense/Loss of Use Deadlines.

Good luck!