The Colorado Division of Insurance published a consumer advisory reminding homeowners about the consumer protections available in the state. This comes following the impact of multiple wildfires across the state.
Homeowners insurers are required to provide insureds with a copy of their policy within three days of a request by the policyholders. Homeowners are advised that if a fire loss occurs when the Governor has declared a wildfire disaster, insurers are required to pay at least 65 percent of the total contents coverage without requiring a detailed inventory. To recoup the other 35 percent, insureds would need to complete an inventory.
After an inventory is submitted, insurers have 30 days to request additional information, and must pay out claims for undisputed items within 30 days.
For a total loss due to a designated wildfire disaster, insurers are required to provide at least 24 months of ALE coverage. Governor Polis has declared the following fires as disasters: Snyder, Gold Mountain, Aspen Acres, Willow, and Sheep Head fires.
Insurers must reimburse insureds for using privately contracted debris removal services within 60 days of receiving a receipt. Finally, insurers are required to offer new applicants or an existing insured extended replacement cost and law and ordinance before issuing or renewing certain replacement cost homeowners insurance policies.
The press release can be found here.