Extending benefits for Additional Living Expenses (ALE) William Dosssett asked 7 months ago
Extending benefits for Additional Living Expenses (ALE)

We lost our house in the Marshall Wildfire, our 2 year ALE period is up 30 Dec 2023. I downloaded the STATE REQUIREMENTS ON ALE-3 CCR 702-5 DORA Emergency Regulation 22-E-09 Tolling Time Limits. Is the document binding on insurance companies? I showed it to my adjuster and he seemed to say they didn’t need to pay past 2 years. We were unable to afford an architect at first and finally found one that was only $4 per sq foot, there was a shortage of architects at the time, also we couldn’t find a builder that could start immediately as there was a shortage. We now have a permit and a builder, but it will be a year before our house is finished. It seems to me that the insurance company should cover our ALE according to that document and the reasons we are requesting extending the ALE period.

Thanks

1 Answers
Answer for Extending benefits for Additional Living Expenses (ALE) United Policyholders Staff answered 7 months ago
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Thank you for submitting a question related to a bulletin that your state agency issued.

The bulletin you’re referencing does identify “extenuating circumstances” as a basis for an insurer extending ALE, which is why UP offers a sample letter to help you specify the circumstances warranting the extension you’re requesting: https://uphelp.org/claim-guidance-publications/sample-letter-requesting-extension-of-additional-living-expense-loss-of-use-deadlines/

In the Commissioner’s bulletin and in a subsequent news release he asked insurers to extend ALE benefits into year two for those whose policies had a 12-month limit, (https://doi.colorado.gov/news-releases-consumer-advisories/division-of-insurance-asks-insurers-to-extend-ale-coverage-beyond) and many of them did so. See: https://doi.colorado.gov/insurance-companies-agree-to-extend-ale-coverage-for-marshall-fire-survivors.

Now that we’re approaching the 3rd anniversary, many people are still unable to move back into a repaired/rebuilt/replacement home, and, like you, are up against a 24 month limit for ALE benefits. Commissioner Conway will likely make a renewed request to insurers to grant extensions up to 36 months where warranted. We encourage you to contact his team and ask him to do so. The bulletin you reference is an ask and a statement of public policy. It does not automatically increase policy limits.