It's not unusual after a catastrophe for recovery to take an extended amount of time. Resources may be scarce and workers may be unavailable. This is a well-known phenomena. In light of this the department has issued a bulletin regarding insureds' inabilities to rebuild homes due to a wildfire within the insurer's policy timelines even with the best intentions and due diligence.

The bulletin specifically addresses additional living expenses and replacement cost benefits. Insurers are required to act in good faith and take into consideration any adverse circumstances beyond the insured's control that may require maintaining and extending certain policy benefits beyond the timelines provided in the underlying policy. Aside from circumstances related directly to the catastrophe, insurers are to also consider seasonal weather issues, labor and material shortages, and insurer delays in providing estimates and actual cash value payments. If an insurer has caused delays in providing estimates or acv payments, the insurer is to extend ALE benefits and time to recover depreciation accordingly. A copy of the bulletin can be found here.