This was a total loss house fire. A 7000 square foot house burned to the ground.

 State Farm is the carrier. The house limits 1.3 million and contents limit $800,000.

The time to rebuild deadline allowable was 2 years. The contents claim took 8 months to settle due to State Farm's delay on our contents list. State Farm agreed to demolish the house and paid accordingly.

A new adjuster was put on the case and asked after the house was demolished why the attached porches weren't saved. This caused a delay in the rebuilding process as they had to have the custom new home builder reply to State Farm's request. They further argued why would there be any code upgrades when the house was going to be newly built. My answer was because the house that was fire damaged was written tit for tat as per the damage. Since the limits were exhausted on the home claim an additional 10% was available over and beyond the house limits for code related items. The adjuster finally agreed. However, several months later State Farm wanted something from the building commission explaining the upgrade requirement so this ultimately affected the repair time and State Farm only wants to pay 17 months of ALE vs 24 months ALE.

State Farm agreed to go to appraisal but will not allow the appraisers and umpire to discuss the code upgrade letter and is calling it a coverage issue.

The insured has provided a list of damages he feels he is owed under additional living expenses since all his limits have been exhausted. These additional items add up to $144,000 plus. 

Indiana Subscriber

ALE provides coverage for additional living expenses over and above the insured's normal living expenses. If the insured is paying a mortgage throughout repairs and has to pay for a hotel, that hotel expense is covered under ALE. While ALE is broad coverage, it is only for expenses to maintain the insured's normal standard of living. The insured cannot add loss damage to ALE when his limits have been exhausted; if he was underinsured he was underinsured, he cannot pad another part of the claim to make up the difference. Payment of ALE is for the shortest time required to repair or replace the damage, or until the insured relocates. This is per the ISO form, the State Farm language may be different. If State Farm's actions caused the delay then they should pay the full ALE. If the code upgrade letter is relevant to the delay which is causing the difference is cost, then it should be allowed.

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