The Colorado Division of Insurance this month offered tips on recovering or extending benefits as Marshall Fire survivors press on with rebuilding efforts two years since the state’s most destructive fire tore through more than a thousand homes in Boulder County.
The agency said said people should contact the DOI’s Consumer Services Team if the companies they are working with are unresponsive or not following through on promised actions — or not following Colorado insurance regulations.
“The Marshall Fire survivors have been through so many challenges and hardships. As has been the case throughout the recovery, we want to be a resource for people as they rebuild,” Colorado Insurance Commissioner Michael Conway said in a statement. “We also have important information for people to consider as they get closer to the two-year anniversary of the fire and the likely end of ALE (additional living expenses), either for people who had 24 months of ALE in their policies, as well as those whose had their ALE extended to 24 months.”
DOI’s Consumer Services Team can be reached at (303) 894-7490 or email [email protected]. People can also file a complaint via doi.colorado.gov.
The Q&A below, lifted out of the agency’s website, has been edited:
How do I recover my extended replacement cost benefits?
If you have met or exceeded your Coverage A and have extended replacement cost benefits available, submit your invoices or evidence of completed work to recover those benefits.
What do I need to do to recover my Law & Ordinance benefits?
Be sure your contractor is providing you and your insurer invoices or evidence of completed work to recover your Law & Ordinance benefits. These may be paid to you as incurred, rather than waiting until all of the work is completed.
Will my insurance company extend my Additional Living Expense (ALE) coverage past 24 months?
It is important to read your policy to understand your ALE coverage. Many policies include 24 months of ALE coverage, but it is possible that individuals may have more coverage.
We have more tips regarding potential ways to work with your insurance company to extend your remaining ALE benefits that are available under your policy. If you don’t think your home will be rebuilt when your ALE benefits are scheduled to expire, we encourage you to contact your insurance company to discuss possible ways to extend the coverage that you have under your policy.
However, unless your insurer caused an unnecessary delay, the company may choose to hold to the contractual terms of the policy, and end ALE coverage in line with those terms.
What can I do if my Additional Living Expenses (ALE) will expire in the coming months?
If the rebuild is progressing and you have an estimated date of completion that will fall after Dec. 31, 2023, contact your insurance adjuster to discuss and request an extension of ALE benefits. Often, if the insurer sees there is an end date in sight, they may consider additional coverage. Keep the insurer apprised of the progress you are making when making a request for an extension and give the insurer a specific date of expected completion.
You may want to consider working with your insurance company to extend your remaining ALE benefits by reducing the amount you currently receive in exchange for an extension on the time you will receive it. For example, if you are currently receiving $6,000 per month and have six months left, ask if they can send you $3,000 per month for 12 months.
You may also want to discuss with your insurer an option to cash out your remaining ALE benefits as a lump sum payment so that you can decide the best way to use or extend the money.
If you do not have a contractor in place and/or your rebuild has not begun, it is unlikely the company will extend ALE. However, if the process has been unnecessarily delayed by the insurance company, you can ask the company to extend for the number of days or months in which it unnecessarily delayed the claim process.
Can the Division of Insurance assist in obtaining an extension of Additional Living Expense (ALE) benefits?
We do not expect insurers to agree to a blanket extension of ALE benefits. However, we can review requests on a case-by-case basis to determine if the company caused unnecessary delays and to ensure that the company followed Colorado law and insurance regulations.
How long do I have to replace my contents and receive the recoverable depreciation?
Colorado law requires the insurer to allow 365 days after your ALE coverage expires to replace your contents and receive recoverable depreciation. This allows you time to purchase your property and limit any storage requirements.
What should we do if we haven’t started the rebuilding process or we don’t have a contractor in place?
If you have not begun the rebuild and/or have not contracted with a builder, and you plan to rebuild, the division recommends you begin the process as quickly as possible.
If the process has been unnecessarily delayed by the insurance company, you can ask the company to extend ALE for the number of days or months in which it unnecessarily delayed the claim process.
