Statutes, codes, and regulations
Colorado Administrative Code
Department 700 - Department of Regulatory AgenciesDivision 702 - Division of InsuranceRule 3 CCR 702-5 - PROPERTY AND CASUALTY
Regulation Regulation 5-1-26 - CONCERNING HOMEOWNER RECONSTRUCTION COSTS AND REPLACEMENT COST ESTIMATES
Section 3 CCR 702-5-1-26-5 - Requirements

3 Colo. Code Regs. § 702-5-1-26-5

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Current through Register Vol. 48, No. 1, January 10, 2025
Section 3 CCR 702-5-1-26-5 - Requirements
A. When estimating the reconstruction cost of a dwelling for new business or renewal policies, insurers shall consider the following factors as the basis for determining the reconstruction costs:
1. An estimate from a contractor or architect if submitted by the policyholder, pursuant to § 10-4-110.8 (8)(d), C.R.S.
2. Effective January 1, 2025, the RCV estimating software used, and the estimates produced by such software, pursuant to § 10-4-110.8 (8)(b), C.R.S.
3. Effective January 1, 2025, reconstruction expenses identified in § 10-4-110.8 (8)(c), C.R.S.
4. Effective April 1, 2025, and each year thereafter, insurers shall consider the residential reconstruction consumer information annual report prepared and posted to the Division's website pursuant to § 10-1-144, C.R.S.
B. Insurers shall disclose the following information to new applicants and existing policyholders upon renewal. Such notice may be delivered electronically, if the policyholder agrees to electronic delivery of policy documents, or included as a separate and distinct notice in the new policy or renewal package:
1. The RCV estimate generated by the insurer's estimating software.
2. Explanation of how the RCV estimate was calculated, listing each specific factor used pursuant to § 10-4-110.8 (8), C.R.S.
3. The Division of Insurance website address of, or link to, the annual report; and,
4. The reconstruction costs for homes located in the same geographic area as the insured's home, pursuant to the annual report required by § 10-1-144, C.R.S.
5. For new applicants, the RCV estimate is subject to change based on the insurer's verification of the information used to generate the RCV.
C. For renewal policies, insurers are exempted from Section 5.B. above if:
1. Within two years of the renewal date the policyholder has requested, and the insurer provided, coverage limits greater than the limits previously selected by the policyholder; or,
2. The insurer has offered, on an every-other-year basis, the right to recalculate the RCV estimate, and the policy includes inflation protection coverage.

3 CCR 702-5-1-26-5

47 CR 15, August 10, 2024, effective 8/30/2024