ALE eligibility for reconnection fees for a total loss rebuild montasticjas asked 2 years ago
ALE eligibility for reconnection fees for a total loss rebuild

We have State Farm insurance. We lost our home in the East Troublesome fire. It was a total loss. We have rebuilt in a different location and moved into our new home. Before we close out our ALE claims, I was doing some research and here at your website I saw that reconnection fees for setting up services at the rebuilt home were part of ALE. We paid so far about $60,000 in fees, listed below.

Telephone $200 Network Extender

Internet $ ?

Propane $0

Electric $7000

Water Well and pump $33,000 – $40,000 (still open as work is ongoing)

Sewage Septic System $12,000 estimated

Recently our adjuster at SF has denied a mileage claim we submitted taking the position that our rebuild in another state (MT) was a “personal choice” and doesn’t qualify for ALE. This amounts to about $4000. We are currently arguing this with them, but feel that even if we submitted the above $60,000 reconnect fees they would pose the same argument. Do you have any suggestions of what we could say to help us receive the ALE we are entitled to?

Thank you,

Jackie S.

1 Answers
Chris Rockers Chris Rockers Expert answered 2 years ago

State Farm policy 2106 notes within the Loss of Use provision, “… we will pay the reasonable and necessary increase in cost incurred by an insured to maintain their normal standard of living…” If, while at a temporary location during the rebuild, you incurred increased costs for telephone or internet service – such costs are arguably owed under the Loss of Use coverage. However, many of the costs reflected in your inquiry may actually be better captured with scope and costs for the Dwelling and Other Structures rebuild. Costs to obtain telephone, internet, propane and electric service to your new home would have been incurred for a home at the same location or new location. Your General Contractor (unless you served as your own general contractor) should be able to allocate actual costs for each service, and these costs can be included within your Dwelling Limit. Costs to install a water well and pump and septic system/leach field are properly captured under Other Structures coverage as they are separate from the Dwelling. If the costs incurred to rebuild the home and Other Structures exceed your policy limits and no additional funds are available under those coverages, it is understandable that you would request that State Farm allocate the costs to coverage where funds are available. You are entitled to costs for increased mileage past 18 months, yet it may be difficult to support multiple trips out of state under ALE. There may be persuasive arguments to share supporting mileage reimbursement, but your insurer may require additional information. Feel free to contact me to further discuss or for clarification, if needed. We wish you well. Chris – 303-926-4959.