HB22-1111 Summary

• Requires homeowners insurance policies to cover building code upgrades and extended replacement costs for total losses from governor-declared wildfires, even if policyholders rebuild at a new location, with indemnity capped at replacement cost for the original location.

• Mandates 36-month periods for policyholders to submit receipts for replacement costs, with options to extend twice by 6-month increments for unavoidable delays in permits, materials, or contractors.

• Requires minimum 24-month additional living expense (ALE) coverage with twice-extendable 6-month options when policyholders face permit or reconstruction delays beyond their control.

• Establishes that policyholders with total contents losses from declared wildfires receive minimum 65% of contents coverage limits without submitting inventory, plus notification of rights to submit inventory for additional payment and insurer's depreciation methodology.

• Appropriates $66,781 to the Division of Insurance for 2022-23 fiscal year (1.0 FTE and operating expenses) and applies to all property and casualty insurance policies offered, issued, or renewed in Colorado.