ALE Exhausted Due to Carrier Delay & Policy Coordination Issues — Any Remedies? Alyssa Mancao asked 2 weeks ago
ALE Exhausted Due to Carrier Delay & Policy Coordination Issues — Any Remedies?

I’m looking for guidance on an ALE issue stemming from prolonged carrier delays.

I experienced a significant interior flooding loss that left my condo unit fully gutted and uninhabitable. For approximately six months, I received inconsistent and conflicting guidance from my insurer regarding whether my HO-6 policy or the HOA master policy would act as the lead carrier for the dwelling portion of the loss.

During this time:

  • I was repeatedly told (in varying forms) that I could choose the lead carrier, or that coordination was still being determined.

  • No clear lead carrier was established for months, which delayed scope approval and repairs.

  • In month six, I was informed that because the HOA master policy elected to cover the dwelling, my policy must now act as excess, and as a result, my ALE has been exhausted.

My carrier has stated that they cannot extend or increase ALE, despite the fact that the prolonged displacement was driven by carrier coordination delays rather than repair progress or my actions.

My question is:

Are there recognized remedies or arguments for requesting additional ALE when coverage delays and policy coordination failures by the insurer(s) directly caused ALE exhaustion?

I’m particularly interested in:

  • Whether insurers can be held responsible for ALE exhaustion caused by delay or shifting coverage positions

  • How others have successfully escalated or documented this type of issue

  • Any guidance on framing a written ALE extension request under these circumstances

Thank you in advance for any insight.

1 Answers
Amy Bach Amy Bach Staff answered 2 weeks ago
1 Vote Up Vote Down

Hi Alyssa,

Here are some arguments you can use:

  • Cite evidence that your insurer caused delays beyond your control that ate up your available benefits and try and negotiate for them to pay additional loss of rent as a claim adjustment expense as opposed to a policy benefit.
  • Consider downsizing to a cheaper temporary home
  • Consider using your remaining ALE funds to buy a tiny home or high end RV
  • Apply for mortgage forebearance
  • Seek out charitable aid
  • If your dwelling was underinsured and your ALE/Loss of use benefits are a % of your dwelling limit, consult with an attorney to see if you have a solid legal argument that the insurer should retroactively increase your limits in both categories

Here’s a sample letter you can customize and use:

https://uphelp.org/claim-guidance-publications/sample-letter-for-wildfire-impacted-standing-homeowners-requesting-extension-of-additional-living-expense-loss-of-use-policy-benefits/

We’re rooting for you!

Amy Bach