07/13/2026
I have an insurance adjuster friend that sent me this:
Colorado Homeowners Insurance: Mandatory Evacuation Coverage
I want to make a Public Service Announcement. I am a licensed public adjuster and insurance adjuster who holds a Senior Claims Law Associate designation.
For those homeowners who were under mandatory evacuations, look at your homeowners insurance policies.
Most standard homeowners insurance policies in Colorado provide coverage for additional living expenses (ALE) when you are subject to a mandatory evacuation order due to a forest fire or wildfire. This is typically handled under the Loss of Use (Coverage D) section of the policy, which includes civil authority provisions. 
How Civil Authority and ALE Coverage Works
Standard homeowners policies (such as the common HO-3 form) include:
• Additional Living Expenses (ALE): Reimburses the reasonable increase in your living costs (e.g., hotel/motel, short-term rental, meals, laundry, extra transportation, and sometimes pet boarding) while you cannot live in your home and must maintain your normal standard of living.
• Civil Authority provision: Extends coverage when a civil authority (fire department, sheriff, local emergency management, governor, etc.) prohibits access to or use of your residence premises as a direct result of a covered peril (wildfire/fire qualifies) damaging neighboring premises or creating an imminent threat in the area. Wildfire/forest fire is a covered peril in virtually all standard homeowners policies. When authorities issue a mandatory evacuation order (often under “Ready, Set, Go!” protocols), this typically triggers ALE coverage even if your specific home has no direct physical damage. 
Colorado-Specific Rules and Protections
The Colorado Division of Insurance (DORA) and the Rocky Mountain Insurance Information Association (RMIIA) confirm that most property insurance policies cover ALE during mandatory wildfire evacuations. Key points include:
• ALE applies when you cannot live in your home due to a mandatory evacuation order tied to a covered peril like wildfire.
• Colorado law requires owner-occupied replacement cost homeowners policies to provide at least 12 months of ALE coverage.
• Insurers must offer you the option to purchase 24 months of ALE coverage (and many extended this during past events like the Marshall Fire).
• Coverage reimburses the difference between your normal living expenses and the higher costs incurred while displaced.
• Pre-evacuation warnings or voluntary departures generally do not trigger coverage — it must be a mandatory order. 
Important Limitations (Common to Most Policies)
• Policy limits apply — ALE is often capped at 20–30% of your dwelling coverage (Coverage A) or by a specific time period. Dollar limits or time limits can be exhausted.
• Possible deductible or waiting period (ask your insurer).
• Coverage ends when you can return home or when policy limits/time are reached (whichever comes first), provided you are not delaying repairs.
• Some policies or adjusters may initially look for actual damage to the home or neighboring properties — but Colorado authorities advise that mandatory evacuation orders due to wildfire generally qualify.
• Exact wording and limits vary by insurer, policy form, and any endorsements. Always verify your specific policy.
Practical Steps If You Face a Mandatory Evacuation
Contact your insurance agent or company immediately — Report your situation, provide your temporary location/contact info, and ask specifically about ALE/civil authority coverage, limits, deductibles, and any assistance with lodging.
Keep every receipt — Hotels, meals, transportation, laundry, storage, etc. Document everything.
Document your property if time safely allows (photos/videos of contents).
Upon return, contact your insurer promptly to report any damage and start a claim.
Renters Insurance (HO-4) should have the same coverages.
Business Insurance (BI - business income) may have civil authority coverage.
Bottom line: In the vast majority of Colorado homeowners, renters and business policies, mandatory evacuation due to forest fire/wildfire triggers civil authority and ALE coverage under Loss of Use. It is a standard and expected protection, backed by guidance from the Colorado Division of Insurance. Because policies differ, the single best step is to review your declarations page and policy forms (or call your agent) for the exact limits and language.
Mike Chesser, licensed insurance adjuster
So if I am your agent, make sure to give me a call so we can get the ball rolling on a claim.
