HB23-1174 Summary

• Commissioner must contract with independent third party to prepare annual report on residential reconstruction costs by April 1, 2025, and each April 1 thereafter, considering region, home type, customization, and specific reconstruction factors.

• Increases notice requirement for policy cancellation or non-renewal from 30 to 60 days in advance, except for non-payment of premium which requires 10 days' notice.

• Requires insurers to offer law and ordinance coverage (minimum 20% of dwelling limit) and extended replacement-cost coverage (minimum 50% of dwelling limit) at policy issuance and renewal, unless policy already includes guaranteed replacement cost or inflation protection coverage.

• Defines "inflation protection coverage" as automatic adjustments to coverage amounts to protect against inflation impact and requires insurers to provide reconstruction cost estimates and detailed disclosures to applicants and policyholders starting January 1, 2025.

• Appropriates $109,955 to the Division of Insurance for fiscal year 2023-24 (0.8 FTE and legal services) and $38,066 to Department of Law (0.2 FTE).