Colorado Property Claims Handling

Colorado has specific requirements for how insurers must handle property insurance claims.

Claims Timeline Requirements

Colorado requires prompt claims handling:

Required Timeframes

Communication Requirements

Insurers must:

• Acknowledge receipt of claims
• Provide claim number and contact information
• Keep claimant informed of claim status
• Respond to claimant inquiries promptly
• Provide written explanation of claim denial

Unfair Claims Practices

Colorado prohibits unfair claims settlement practices:

Prohibited Practices

• Misrepresenting policy provisions to claimants
• Failing to acknowledge claims promptly
• Failing to communicate claim decisions
• Denying claims without reasonable investigation
• Offering substantially less than reasonable value
• Delaying payment to force settlement
• Not attempting good faith settlement when liability clear
• Failing to provide reasonable explanation for denial

Penalties

• Administrative fines
• License suspension or revocation
• Required restitution
• Bad faith lawsuits by policyholders

Public Adjusters

Colorado regulates public adjusters who assist policyholders with claims:

Licensing Requirements

Public Adjuster Regulations

• Must act in best interest of policyholder
• Compensation disclosed in writing
• Cannot solicit during certain periods after disasters
• Cannot practice law or act as contractor

Appraisal Process

Colorado property policies typically include appraisal provisions:

How Appraisal Works

1. Dispute arises over claim value
2. Either party demands appraisal
3. Each party selects an appraiser
4. Appraisers select an umpire
5. Agreement by any two sets the value

Appraisal Considerations

• Binding on amount of loss
• Does not address coverage disputes
• Costs typically shared
• Faster than litigation

Dispute Resolution

Options for resolving property claim disputes: