The Colorado Department of Regulatory Agencies published a bulletin announcing the adoption of Regulation 5-1-26: Concerning Homeowner Reconstruction Costs and Replacement Cost Estimates, which will become effective August 30, 2024. 

Regulation 5-1-26 requires that when estimating the reconstruction cost of a dwelling for new or renewal policies, insurers should consider the following factors:

• An estimate from a contractor or architect, if available
• Effective January 1, 2025, the Replacement Cost Value estimating software used, and the estimates produced by that software
• Effective January 1, 2025, the reconstruction expenses listed in § 10-4-110.8 (8)(c), C.R.S. These include labor, building materials, and supplies; the contractor's overhead and profit; demolition and debris removal; the cost of permits and architect's plans; and features of the structure, such as foundation type, square footage, roofing materials, etc.
• Effective April 1, 2025, the residential reconstruction consumer information annual report posted to the Division's website

Insurers should provide the following information to existing policyholders upon renewal:

• The Replacement Cost Value (RCV) estimate generated by the insurer's estimating software 
• An explanation of how the RCV estimate was developed, listing each specific factor used
• The Division of Insurance website link to the annual report
• The reconstruction costs for homes in the same area as the insured's home

Insurers are exempted from the requirements above for renewal policies if, within two years of the renewal date, the policyholder requested coverage limits greater than the limit they previously had. They are also exempted if the insurer offers the right to recalculate the RCV estimate every other year, and if the policy includes inflation protection coverage.