I have a lightning strike claim in which the adjuster is refusing to use my logic when it comes to charges for the client's EV ALE charges. Since the insured can't use his house charger, he is having to go charge at an EV charging station and pay a premium rate. I presented my argument as such:

1)I strongly disagree with your statement regarding the Telsa charge. You cannot track mileage in an EV like you would a gasoline powered vehicle. The insured could have charged his car much cheaper at home verses at a public charging station. Same theory as buying a soda at the movies verses your home costs for a can of soda. Both Kelly Bluebook and Popular Mechanics agree that the average cost for a home charge is $0.16 per kWh. However, Texas electricity rates is 7% lower than the national average. Therefore, I am proposing that a home charge would have cost about $0.14 per kWh. If you deduct $0.14 from the charging station rate, this should be the additional cost that the insured is incurring for every charge.

We cannot treat an EV charge with the same tools we use to calculate additional charges for gasoline powered vehicles. With a gas-powered vehicle, your only option is to fuel at a gasoline station with the gas rate per gallon is within a few cents. However, with EV, the owner can fuel at home for a much LOWER rate than the EV charging station is charging him.

I agree that the mileage needs to factored in as well, but you cannot ignore the premium you have to pay at the charging station. Is there a calculation for the additional mileage for an EV?

Texas Subscriber

Is there damage to the dwelling that has made it unfit to live in? Has the insured had to relocate to another location? If so, then that should have been factored into where the insured is staying – many hotels have electric charging stations. It would make sense that the insured be temporarily located in a facility that can also charge his vehicle.

ALE only applies if the premises is not fit to live in. If the insured premises is habitable and only the electric vehicle charger was damaged, then there would be no coverage for charging the electric vehicle. Motor vehicles are excluded under Property not Covered, and the exception is for motor vehicles not required to be registered for use on public roads that are used solely to service a residence or are designed to assist the handicapped. If the insured is driving to a public charging station, then his vehicle is licensed for public roads and as such is excluded for coverage. Any increased charging expenses because the vehicle charger is damaged is not enough to trigger ALE; the premises must be uninhabitable for the insured for ALE coverage to apply.