HB1247

Colorado HB1247 mandates appraisal clauses in homeowner's insurance policies to resolve disputes over loss amounts.

Colorado HB1247 requires homeowner's insurance policies issued or renewed on or after January 1, 2027, to include a mandatory and binding appraisal process for resolving disputes over the amount of loss, causation, or necessary scope of repair or replacement of property. The appraisal clause allows either the insured or the insurer to request an appraisal if they dispute the initial coverage determination. Each party selects an appraiser, and if they cannot agree on an umpire, a court selects one. The appraisal process does not determine coverage under the policy terms.