More than two years after the denial of her claim, Gregory brought suit against Safeco, claiming breach of contract, bad-faith breach of an insurance policy, and unreasonable delay, and denial of her claim. (Credit: Zolnierek/Shutterstock)

The "notice-prejudice rule," which requires an insurer to prove that it was prejudiced by an insured's late notice of a claim in order to deny coverage, does not apply to homeowners insurance policies, the Colorado Court of Appeals has ruled, but they added that "this case may present an opportunity for our supreme court to provide clarity on this question."

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