Skip to main content
Colorado General AssemblyToggle Main Menu
Agency NameToggle Agency Menu

Homeowner's Insurance Underinsurance

Concerning homeowner's insurance, and, in connection therewith, requiring certain reports related to the cost of rebuilding a home in the event of a total loss, increasing the notice requirement before an insurer can cancel or refuse to renew a homeowner's insurance policy, and creating guaranteed replacement cost coverage in homeowner's insurance.
2023 Regular Session
Bill Summary

The bill requires the commissioner of insurance (commissioner) to prepare an annual report on the cost of rebuilding homes in Colorado in the event of a total loss. An insurer that issues or renews more than 25% of its homeowner's insurance policies in a particular region of the state at a cost that is at least 10% less than the estimate set forth in the commissioner's annual report is required to report certain information to the commissioner.

Current law prohibits an insurer from canceling or refusing to renew a policy of homeowner's insurance unless the insurer mails notice to the insured at least 30 days in advance of the effective date of the cancellation of or refusal to renew the policy. The bill increases the notice requirement to 60 days in advance of the action.

The bill creates guaranteed replacement cost coverage in homeowner's insurance, which pays the full cost to repair or replace a damaged or destroyed structure, even if the amount exceeds the policy limits. The bill specifies the factors an insurer must consider when determining the replacement costs of a dwelling and requires insurers to disclose certain information regarding the replacement costs before issuing or renewing a homeowner's insurance policy.

The bill requires an insurer to offer an applicant guaranteed replacement cost coverage before offering extended replacement cost coverage, law and ordinance coverage, or inflation protection coverage, which is defined as coverage that provides automatic adjustments of the coverage amount on the dwelling or structure being insured to protect against the impact of inflation.

(Note: This summary applies to this bill as introduced.)


Under Consideration


Bill Text


Sponsor Type Legislators
Prime Sponsor

Rep. J. Amabile



Email addresses for the Colorado legislature have changed from the domain to the domain on December 1, 2022. Details