(May 10) – A bill to help make sure insurance companies actually cover what their homeowners’ policies claim they cover was signed into law today by Gov. John Hickenlooper.
HB13-1225, a k a the Homeowners Insurance Reform Act and sponsored by Rep. Claire Levy (D-Boulder), will provide better protection to homeowners whose homes are damaged or destroyed. It extends the deadline for homeowners to rebuild their homes in the event of a total loss and includes provisions to make sure payouts for replacement costs actually cover the cost of replacement.
Responding to reports from homeowners devastated by the Four Mile Canyon, High Park and Waldo Canyon fires of 2012, the bill also allows homeowners to receive 30 percent of their policy coverage for loss of contents without the burden of compiling an inventory.
Rep. Levy worked closely with homeowners and insurance companies to provide better insurance coverage without imposing expensive mandates on insurance companies.
“The last thing a homeowner needs after suffering a devastating loss is to learn they now have to do battle with their insurance company before they can rebuild their lives,” she said. “But while we’re protecting Colorado homeowners, we’re also making clear their responsibilities regarding their insurance policies.”