HB24-1083: Construction Liability Insurance Coverage

• Requires the Division of Insurance to study construction liability insurance in Colorado, identifying all insurers offering policies, rate data for the past 5 years, risk factors, coverage terms, and comparisons with regional rates, with a report due by December 31, 2026.

• Mandates that sellers of new residences disclose construction liability insurance information to purchasers at least 14 days before closing, including policy identifications, coverage limits, policy periods, and relevant exclusions.

• Requires sellers to file the same insurance coverage information with county clerk and recorder offices, which must make the information publicly available for inspection.

• Establishes civil enforcement allowing purchasers to sue sellers for non-compliance, with penalties up to $500 or treble attorney fees and costs if the seller failed to procure construction defect coverage.

• Exempts individuals constructing their own primary residence from disclosure requirements and repeals the study requirement on September 1, 2027.