Consumer Advisory: Division of Insurance Again Requesting ALE Extensions for Marshall Fire Survivors

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Media Contact:

Vincent Plymell
vincent.plymell@state.co.us

“Even short ALE extensions would be meaningful to people.”

DENVER - Today, the Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), issued a request to the homeowners’ insurance companies with policyholders in the Marshall Fire area with a specific ask to extend additional living expenses (ALE) benefits in homeowners’ policies for people still rebuilding their homes. ALE benefits help with expenses people have when they can’t live in their home due to a catastrophic event like a fire, but still need a place to live and the other necessities of life. 

Many Marshall Fire survivors are still rebuilding their homes and will not be finished by the time ALE benefits are set to expire on the two-year anniversary of the fire next month. Unlike the DOI’s request at the end of 2022 which sought to extend ALE benefits up to an additional year, Colorado Insurance Commissioner Michael Conway is looking for shorter extensions to help people, as many should complete their rebuilding in the coming months. 

“Knowing the negative consequences of having ALE benefits expire compels me as Colorado’s Insurance Commissioner to request that all of the insurance companies with policies in the Marshall Fire area offer extensions on ALE to the survivors who are still in the process of rebuilding their homes. Even short ALE extensions would be meaningful to people, especially when coupled with the Housing Support Program for Marshall Fire Survivors, recently announced by the Community Foundation of Boulder. Together, such efforts could be enough to help people until they are able to move back into their homes.”

The letter to the insurers is also listed below. 

As a reminder, Marshall Fire survivors with any questions or concerns about their insurance, including ALE benefits, can contact the DOI’s Consumer Services Team at 303-894-7490 / DORA_Insurance@state.co.us

 

To: Colorado Homeowners Insurance Companies 

The Marshall Fire has been devastating to so many people, and as we approach the two-year anniversary of the disaster, many of the survivors are still working to rebuild their homes and put their lives back together. 

While some have completed the reconstruction and repair of their homes, many more are still in the midst of the rebuilding process. They are moving forward with their efforts, but the very real fact is that many homeowners are months away from completing the rebuilding of their homes. And for these people, the two-year anniversary will also mean the end of additional living expenses (ALE) benefits, the benefits that have helped to keep a roof over their heads throughout this rebuilding process. 

Like all Coloradans, I want to see these folks move back into their homes. Not only will that benefit the individual people and families, but it will help the Louisville and Superior communities that were devastated by the fire.

Knowing the negative consequences of having ALE benefits expire compels me as Colorado’s Insurance Commissioner to request that all of the insurance companies with policies in the Marshall Fire area offer extensions on ALE to the survivors who are still in the process of rebuilding their homes. Even short ALE extensions would be meaningful to people, especially when coupled with the Housing Support Program for Marshall Fire Survivors, recently announced by the Community Foundation of Boulder. Together, such efforts could be enough to help people until they are able to move back into their homes. 

While we recognize there's no obligation, granting extensions to Marshall Fire survivors would embody the spirit of legislation passed in 2022, specifically HB22-1111 Insurance Coverage for Loss Declared Fire Disaster, to empower and support the community to focus on swift recovery and efficient resource allocation.

The resilience of our communities post-disaster hinges on numerous collaborative efforts. As we seek an extension of ALE, we also urge all stakeholders involved in the recovery and rebuilding phases to take every measure to expedite the restoration of the affected communities. Through this unified approach, we not only bolster our communities in their immediate needs but also position ourselves to better navigate the imminent challenges surrounding the affordability and availability of homeowners insurance in Colorado. We hope you’ll join us in continuing to help the community rebuild and recover.

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About the Division of Insurance:

The Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), regulates the insurance industry and assists consumers and other stakeholders with insurance issues. Visit doi.colorado.gov for more information or call 303-894-7499 / toll free 800-930-3745

About DORA:

DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission. Visit dora.colorado.gov for more information or call 303-894-7855 / toll free 800-886-7675

 

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