Home Insurance Law Why Time Issues In a different way in Colorado for Owners, Enterprise Homeowners, and HOAs | Property Insurance coverage Protection Regulation Weblog

Why Time Issues In a different way in Colorado for Owners, Enterprise Homeowners, and HOAs | Property Insurance coverage Protection Regulation Weblog

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Why Time Issues In a different way in Colorado for Owners, Enterprise Homeowners, and HOAs | Property Insurance coverage Protection Regulation Weblog

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In Colorado, a house owner’s time restrict for submitting a breach of contract lawsuit in opposition to an insurance coverage firm for an unpaid or underpaid declare can differ from the closing dates imposed on enterprise house owners and householders associations. 

Contractual Breach of Insurance coverage Coverage: 

Underneath Colorado Revised Statute § 13-80-101(1), a lawsuit based mostly on a breach of contract should be filed inside three years after the reason for motion accrues. Nevertheless, insurers have the power to contractually scale back this era. Notably, they’ll shorten it to as temporary as six months from the date of loss.1 Generally, insurance coverage carriers scale back this era to at least one to 2 years. 

In 2014, the Colorado State Legislature enacted Colorado Revised Statute § 10–4–110.8(12)(a) to safeguard householders. This provision prevents insurance coverage carriers from diminishing the three-year statute of limitations interval for claims made by householders. Consequently, insurers are prohibited from issuing or renewing insurance policies that require householders to sue inside a timeframe shorter than the legally prescribed statute of limitations.

(12)(a) However any provision of a house owner’s insurance coverage coverage that requires the policyholder to file go well with in opposition to the insurer, within the case of any dispute, inside a time frame that’s shorter than required by the relevant statute of limitations supplied by regulation, a house owner might file such a go well with throughout the time frame allowed by the relevant statute of limitations . . . 

(b) On and after January 1, 2014, an insurer shall not situation or renew a house owner’s insurance coverage coverage that requires the policyholder to file go well with in opposition to the insurer, within the case of any dispute, inside a time frame that’s shorter than required by the relevant statute of limitations supplied by regulation. 

Within the context of house owners associations, it seems that people who personal townhomes or condominiums will not be labeled as “householders” below § 10–4–110.8(12)(a). Whereas there isn’t any controlling regulation on this situation, at the least three Colorado Federal District trial courts have held {that a} business entity holding a “Enterprise Proprietor’s Coverage” for townhomes or condominiums doesn’t fall throughout the scope of a “house owner” as contemplated by the statute.2 The courts reasoned that the statute’s language particularly targets “house owner’s insurance coverage insurance policies” and makes no provision for business or enterprise insurance policies, even when they cowl residential constructions like townhomes or condominiums. In mild of this statutory interpretation, these trial courts concluded that Colo. Rev. Stat. § 10–4–110.8(12)(a) was inapplicable to insurance coverage insurance policies held by house owner’s associations which might be basically business in nature. 

It is very important word that the timing for the statute of limitations for householders, enterprise house owners, and HOAs begins from the date of loss, not the date of discovery or the date of reporting.

Because of this it’s important to evaluation an authorized copy of the coverage. Failing to satisfy key deadlines might jeopardize your declare and out there authorized cures.

When you’ve got questions on your declare, please contact our workplace


1 Grant Household Farms, Inc. v. Colo. Farm Bureau Mut. Ins. Co., 155 P.3d 537, 538 (Colo. App. 2006); Union Well being & Accid. Co. v. Welch, 206 P. 790, 790 (Colo. 1922). 

2 Pinewood Townhome Affiliation, Inc. v. Auto Homeowners Insurance coverage Co., 2017 WL 590294, at *2-3 (D. Colo. Feb. 13, 2017); Brookshire Downs at Heatherridge Apartment. Ass’n, Inc. v. Homeowners Ins. Co., 324 F. Supp. 3d 1201, 1204 (D. Colo. 2018); Steeplechase II Apartment. Ass’n, Inc. v. Vacationers Indem. Co., No. 17-CV-01273, 2018 WL 6571392, at *3 (D. Colo. Dec. 13, 2018)

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