The Colorado Division of Insurance published a Bulletin addressed to all property and casualty insurers issuing homeowner policies in Colorado that have claims resulting from the Marshall and Middle Fork wildfires. The fires occurred in December, 2021 and destroyed over 1,000 residential and commercial buildings–the most devastating fires in Colorado history.
The Division has received many consumer requests on extending the time limits of coverages and endorsements that contribute to the complete restoration, rebuilding, or replacement of the insured building and personal property. Since the fires occurred two years ago, many insureds are nearing the time limits that are available in their policies, yet their property has not been fully restored.
The Division, seeking to support insureds in their rebuilding efforts, requests that insurers temporarily suspend any time limits related to all applicable coverages and endorsements. This request includes, but is not limited to, recoverable depreciation, law and ordinance coverage, and extended replacement cost coverages. These grants should be considered for policyholders who made a good faith effort to restore, rebuild, or replace the insured property. Coverage should be provided for costs incurred even after the original policy deadline.
The process to request an extension of time limits and coverages should be simple and transparent, and communicated clearly to ensure that policyholders know of the options available and the steps needed to request an extension. The process should be readily accessible no later than February 16, 2024. An insurer's failure to accommodate these requests may be viewed as non-compliant with good faith insurance practices and may result in a Market Conduct Examination.
The Bulletin can be found here.
This is one of many actions that have been taken by the Colorado Division of Insurance to assist policyholders affected by the Marshall and Middle Fork fires. Others may be found here: