summary
Introduced
02/18/2026
02/18/2026
In Committee
02/18/2026
02/18/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
The bill requires each policy or contract of homeowner's insurance (policy) issued or renewed in the state on or after January 1, 2027, to include a mandatory and binding appraisal process, if requested by either the insured or the insurer, for determination of disputed claims for damage to property, including a determination of the amount of loss, causation, and necessary scope of repair or replacement of the property. The appraisal process does not determine coverage under the terms of the policy. The bill specifies the appraisal process requirements, including who can serve as a fair and competent appraiser and umpire, the selection of an appraiser by each party, and the joint selection of an umpire by the parties' appraisers, prior to commencing negotiations, in the event the insured and insurer cannot resolve the dispute. The affirmative vote of the appraisers or of an appraiser and the umpire determines the loss amount. The insured and insurer each pay their own expenses for their appraiser and share the expenses of the umpire. The bill includes a timeline for completing the appraisal process, including completion within 4 months after the umpire is selected. The bill tolls the timelines for certain contract provisions while the appraisal process is pending. The bill also specifies information that must be provided to an insured with respect to an insurer's initial review of a claim. An insurer shall provide written evidence supporting an initial coverage determination. If the amount of loss is disputed, the insured may submit third-party damage assessments and the insurer shall reprocess the claim, taking into account the third-party damage assessments. The bill declares that it is an unfair method of competition and unfair or deceptive act or practice in the business of insurance to willfully or repeatedly violate the provisions of the bill concerning the appraisal clause process for policies.
AI Summary
This bill mandates that all homeowner's insurance policies issued or renewed in the state on or after January 1, 2027, must include a mandatory and binding appraisal process to resolve disputes over property damage claims, including the amount of loss, the cause of damage, and the necessary repairs. This appraisal process, which does not determine policy coverage, requires each party (the insured homeowner and the insurer) to select a qualified appraiser, and these appraisers will jointly select an umpire, who is either another appraiser or a retired judge, to help resolve disagreements. The decision of any two of these three individuals will determine the amount of loss. The bill outlines specific qualifications for appraisers and umpires to ensure they are fair and competent, meaning they have no financial interest in the outcome, are not current employees of either party, and have no personal relationships that could suggest bias. The insured and insurer will each pay for their own appraiser and split the cost of the umpire, with the entire appraisal process expected to be completed within four months of the umpire's selection. During this appraisal period, certain timelines within the insurance policy, such as those for recovering benefits or filing a lawsuit, will be paused (tolled). The bill also requires insurers to provide written evidence supporting their initial claim decisions and to reconsider claims if the insured submits third-party damage assessments. Finally, willfully or repeatedly violating these appraisal process requirements will be considered an unfair business practice.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
House Business Affairs & Labor Hearing (00:00:00 3/11/2026 Room 0112) (on 03/11/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://leg.colorado.gov/bills/HB26-1247 |
| BillText | https://leg.colorado.gov/bill_files/112194/download |
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