Colorado House Bill HB1174

Colorado 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/6/23
• Report Pass: 3/8/23
• Refer: 3/8/23
• Report Pass: 4/18/23
• Refer: 4/18/23
• Engrossed: 4/24/23
• Refer: 4/24/23
• Report Pass: 5/2/23
• Refer: 5/2/23
• Report Pass: 5/6/23
• Refer: 5/6/23
• Enrolled: 5/8/23
• Enrolled: 5/11/23
• Engrossed: 5/11/23
• Passed: 5/12/23

Caption

Homeowner's Insurance Underinsurance

Impact

The implementation of HB 1174 will amend existing Colorado Revised Statutes regarding homeowner's insurance, including protocols for cancelation or non-renewal of policies and the introduction of guaranteed replacement cost coverage. Insurers will now be mandated to provide homeowners with detailed estimates of reconstruction costs based on specific factors, enhancing consumer understanding and awareness. Additionally, an annual report will be prepared to evaluate the cost of home reconstruction throughout the state, which will further aid homeowners in making informed decisions regarding their coverage.

Summary

House Bill 1174, titled 'Homeowner's Insurance Underinsurance,' was designed to address critical issues within the homeowner's insurance landscape in Colorado. The bill introduces guidelines that require insurers to provide adequate coverage estimates for homeowners, ensuring that they understand the costs associated with reconstructing their homes. A significant focus of the legislation is on enhancing transparency, particularly about the impact of inflation on policy values and coverage limits. This move is aimed at preventing underinsurance, which can leave homeowners vulnerable in the event of property loss or damage.

Sentiment

Sentiment around HB 1174 appears to be cautiously positive, with support from various legislative members who recognize the necessity for protective measures in homeowner's insurance. While proponents argue that it will significantly benefit consumers by providing clearer guidelines and support for value assessments, there are concerns about the potential administrative burdens it may impose on insurers. The divide is apparent between the desire for more stringent regulations to protect homeowners and the apprehension regarding the operational implications for insurance companies.

Contention

Notable points of contention in the discussions revolve around how effectively the bill balances the needs of consumers against the operational realities of insurance providers. Some opposition is anticipated, particularly concerning the implementation timelines and the extent of compliance required of insurers, especially in regard to the additional annual reports and cost estimation processes. Striking a balance between consumer protection and business feasibility will be essential as the bill moves forward.