Colorado Division of Insurance Issues Updated Request for Marshall Fire ALE Extension 

Colorado Division of Insurance (DORA) Commissioner Michael Conway has issued a new request to homeowners insurance companies to extend Additional Living Expenses (ALE) benefits for those affected by the Marshall Fire on December 30, 2021. This request for further extensions of ALE coverage echoes the concerns raised in my blog post, The Clock Is Ticking: Understanding the Need for Extended ALE Coverage After the Colorado Marshall Fires. The November 2023 request comes as many policyholders are still rebuilding their homes and approaching the two-year anniversary of the fire, which marks the expiration of their current ALE benefits. 

Commissioner Conway’s letter emphasizes the pressing timeline and precarious situation for homeowners still rebuilding from the fire. 

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. . . 

[M]any 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. . . 

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. . . 

[G]ranting 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…

At the end of 2022, DORA’s first request sought ALE extensions of up to an additional year. Commissioner Conway is now advocating for additional shorter extensions, stressing that even short extensions of ALE benefits would significantly aid homeowners, especially when combined with the Housing Support Program for Marshall Fire Survivors recently announced by the Community Foundation of Boulder. The Housing Support Program, backed by up to $5 million from the Boulder County Wildfire Fund, may provide up to $2,500 monthly to those facing financial hardship as their ALE benefits expire. This 2023 request by DORA advocating for policyholders is commendable.  

It is further worth noting DORA’s partnership with United Policyholders in conducting a comprehensive two-year survey to understand and address the broader challenges faced by Marshall Fire survivors. This survey aims to track progress and identify insurance and wildfire recovery issues, building upon the data collected from previous 6- and 12-month surveys.   If your insurance provider has not extended your ALE coverage, or you are facing challenges securing an extension, please contact our office to discuss your situation and options.