Rep. Neguse, Sens. Bennet and Hickenlooper Fight to Expand Insurance Coverage for Families Impacted by the Marshall Fire

Lafayette, CO — Congressman Joe Neguse, Chair of the Bipartisan Wildfire Caucus, and U.S. Senators Michael Bennet and John Hickenlooper penned a letter to ten insurance companies representing Colorado’s homeowners, urging them to extend Additional Living Expenses (ALE) coverage from 24 months to 36 months for survivors of the Marshall Fire. Their letter follows recent reports that fewer than two-hundred individuals impacted by the Marshall Fire have been able to return home. 

Earlier this year, Congressman Neguse and Senators Bennet and Hickenlooper were able to successfully get several homeowners’ insurance companies to extend ALE coverage for Marshall Fire survivors for up to 24 months for policyholders who initially only had 12 months of coverage. That coverage is set to expire in late December of this year. 

“Almost two years later, reconstruction efforts are still underway. Many homes have only just finished their foundations and are still months away from completion. About 190 families have moved back into rebuilt homes. It’s unlikely that the nearly 900 other homeowners will have finished by the time the ALE extension expires at the end of year - especially because these homeowners are competing for the same contractors, materials, permits and inspections,” the letter stated.

The lawmakers continued: “We are not out of the woods yet. Our Colorado families still need assistance during the rebuilding process. I join our state and local officials in requesting that you extend ALE coverage from 24 months to 36 months for survivors of the Marshall Fire suffering a total loss of their owner-occupied home.”

The Marshall Fire, which began on December 30, 2021, claimed over 1,000 homes, and caused an estimated $2 billion in total damages, making it the most devastating and costliest fire in Colorado history. 

In the years since the Marshall Fire, Rep. Neguse has continued to be a leader in the fight against wildfires. He helped to secure over $11 billion in federal funds related to helping families and communities impacted by Marshall Fire. He introduced 3 bills to directly benefit Marshall Fire victims and led the House-passed Wildfire Response and Drought Resiliency Act, a monumental legislative package composed of over 50 stand-alone bills all focused on tackling wildfires, boosting firefighter pay, and funding resiliency and mitigation projects for communities impacted by recent climate-induced disasters. Most recently, Rep. Neguse successfully advocated that the Department of Housing and Urban Development (HUD) update reverse mortgage foreclosure guidelines for victims of the Marshall Fire. The Congressman was made aware of this issue after hearing that a foreclosure notice was sent to an 80-year-old Superior resident who lost his home as a result of the Marshall Fire; since urging action the notice has been rescinded. 

Read the full letter HERE and below: 

October 25, 2023

Dear Insurance Provider,

I am writing on behalf of the survivors of the Marshall Fire in Boulder County, Colorado, whose current extension of Additional Living Expenses (ALE) coverage expires at the end of December 2023.

The Marshall Fire was the most destructive fire in Colorado’s history, devastating neighborhoods across Louisville, Superior, and unincorporated Boulder County. The fire claimed over 1,000 homes, caused an estimated $2 billion in total damages, and resulted in the tragic loss of life. However, our communities are resilient and chose to rebuild in the face of this catastrophic disaster. 

Almost two years later, reconstruction efforts are still underway. Many homes have only just finished their foundations and are still months away from completion. About 190 families have moved back into rebuilt homes. It’s unlikely that the nearly 900 other homeowners will have finished by the time the ALE extension expires at the end of year - especially because these homeowners are competing for the same contractors, materials, permits and inspections

ALE coverage provides financial support for individuals who cannot live in their homes due to catastrophic events such as natural disasters. For many, especially those who are under-insured, it’s not feasible to pay rent in addition to mortgages. Last year, ten companies had policyholders with 12 months of ALE, and all ten companies agreed to extend ALE coverage up to 24 months for Marshall Fire survivors who experienced a total loss of their owner-occupied home. The impact of the 2023 extension cannot be overstated.

We are not out of the woods yet. Our Colorado families still need assistance during the rebuilding process. I join our state and local officials in requesting that you extend ALE coverage from 24 months to 36 months for survivors of the Marshall Fire suffering a total loss of their owner-occupied home. 

I greatly appreciate the attention with which you have assisted our communities in the wake of the Marshall Fire and request that you approach this impending crisis with the same level of urgency.

Sincerely, 

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