HB 24-1083

House Bill 24-1083, known as the Construction Professional Insurance Coverage Transparency Act, requires the Colorado Division of Insurance to study construction liability insurance for professionals in the state. This includes analyzing rates charged by insurers over the past five years and comparing them with other states in the region. Additionally, it mandates that sellers provide buyers of new homes with detailed information about the insurance coverage for the property before closing the sale. The bill is now signed into law, meaning its requirements are officially in effect.

Official Summary

The bill requires the division of insurance (division) to conduct or cause to be conducted a study of construction liability insurance for construction professionals in Colorado. The study must identify the following: All insurers offering construction liability policies in Colorado (policies); The rates charged by insurers for policies and the basis for the rates, including data for the past 5 years, if available; Risk factors, classifications, and coverage descriptions insurers use to set policy rates; A comparison of the policy rates insurers charge with rates charged by other states in the region to cover similar residential projects; Policy coverage terms; and Common limitations or exclusions from policy coverage. The bill requires that, at least 14 days prior to closing the sale of a new residence, the seller of the residence provide the purchaser and the county clerk and recorder's office for the county where the new residence is located with information regarding the insurance coverage for the property subject to the sale, including: Identification of each policy and the coverage provider that may provide coverage for a construction professional's work on the residence; The amount of the policy limits for each policy identified; The policy period for each policy identified, including whether the policy provides coverage on a claims-made basis or occurrence basis; and Identification of relevant exclusions from coverage.(Note: This summary applies to this bill as introduced.)