HB26-1247 • 2026

Property Insurance Appraisal Clause Claim Disputes

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. R. Keltie
Last action: 2026-04-01
Official status: House Considered Senate Amendments - Result was to Laid Over Daily
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on penalties for non-compliance or impacts on pre-existing policies.

Homeowner's Insurance Appraisal Clause Claim Disputes

This bill requires homeowner insurance policies issued or renewed after January 1, 2027, to include a mandatory and binding appraisal process for resolving disputes over damage claims.

What This Bill Does

Requires each homeowner insurance policy issued or renewed on or after January 1, 2027, to have an appraisal clause that allows either the insured or insurer to request a binding appraisal process if there is a dispute about property damage.
Specifies requirements for selecting fair and competent appraisers and umpires who will determine the amount of loss in disputes.
Sets timelines for completing the appraisal process within 4 months after the umpire is selected, with both parties paying their own expenses and sharing the umpire's costs equally.
Requires insurers to provide written evidence supporting initial coverage determinations and to consider third-party damage assessments submitted by insureds.
Declares that willful or repeated violations of this appraisal clause process are unfair methods of competition in insurance.

Who It Names or Affects

Homeowners with insurance policies issued or renewed after January 1, 2027.
Insurance companies providing homeowner's insurance policies.

Terms To Know

Appraiser: A person who is licensed in the state as a contractor, inspector, public adjuster, or attorney; an in-house insurance company adjuster; or an independent insurance adjuster.
Umpire: An appraiser or retired judge selected jointly by both parties' appraisers to resolve disputes if the appraisers cannot agree.

Limits and Unknowns

The bill does not specify what happens if an insurer fails to comply with the new requirements.
It is unclear how this will affect existing policies before January 1, 2027.
The effective date of the bill has not been specified.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Business Affairs & Labor

Passed [*]

Plain English: The amendment changes the rules for when an insurer must review a third-party damage assessment and conduct another on-site inspection.

If a third-party damage assessment shows major differences from the insurer's original inspection or includes new important information, the insurer must review it in good faith and do another on-site inspection.
The insurer can avoid further inspections if the reinspection agrees with their initial findings and any additional submitted information does not contain new facts that could change the coverage decision.

Some parts of the amendment text are technical and might be hard to understand without more context.

Bill History

2026-04-01 House
House Considered Senate Amendments - Result was to Laid Over Daily
2026-03-25 House
House Committee on Business Affairs & Labor Postpone Indefinitely
2026-02-18 House
Introduced In House - Assigned to Business Affairs & Labor

Official Summary Text

The bill requires each policy or contract of homeowner's insurance (policy) issued or renewed in the state on or after January 1, 2027, to include a mandatory and binding appraisal process, if requested by either the insured or the insurer, for determination of disputed claims for damage to property, including a determination of the amount of loss, causation, and necessary scope of repair or replacement of the property. The appraisal process does not determine coverage under the terms of the policy.
The bill specifies the appraisal process requirements, including who can serve as a fair and competent appraiser and umpire, the selection of an appraiser by each party, and the joint selection of an umpire by the parties' appraisers, prior to commencing negotiations, in the event the insured and insurer cannot resolve the dispute. The affirmative vote of the appraisers or of an appraiser and the umpire determines the loss amount. The insured and insurer each pay their own expenses for their appraiser and share the expenses of the umpire. The bill includes a timeline for completing the appraisal process, including completion within 4 months after the umpire is selected. The bill tolls the timelines for certain contract provisions while the appraisal process is pending.
The bill also specifies information that must be provided to an insured with respect to an insurer's initial review of a claim. An insurer shall provide written evidence supporting an initial coverage determination. If the amount of loss is disputed, the insured may submit third-party damage assessments and the insurer shall reprocess the claim, taking into account the third-party damage assessments.
The bill declares that it is an unfair method of competition and unfair or deceptive act or practice in the business of insurance to willfully or repeatedly violate the provisions of the bill concerning the appraisal clause process for policies.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0777.01 Brita Darling x2241 HOUSE BILL 26-1247
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
CONCERNING PROCEDURES REQUIR ED FOR THE RESOLUTION OF101
DISPUTED HOMEOWNER'S INSURANCE CLAIMS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill requires each policy or contract of homeowner's insurance
(policy) issued or renewed in the state on or after January 1, 2027, to
include a mandatory and binding appraisal process, if requested by either
the insured or the insurer, for determination of disputed claims for
damage to property, including a determination of the amount of loss,
causation, and necessary scope of repair or replacement of the property.
HOUSE SPONSORSHIP
Keltie,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
The appraisal process does not determine coverage under the terms of the
policy.
The bill specifies the appraisal process requirements, including
who can serve as a fair and competent appraiser and umpire, the selection
of an appraiser by each party, and the joint selection of an umpire by the
parties' appraisers, prior to commencing negotiations, in the event the
insured and insurer cannot resolve the dispute. The affirmative vote of the
appraisers or of an appraiser and the umpire determines the loss amount.
The insured and insurer each pay their own expenses for their appraiser
and share the expenses of the umpire. The bill includes a timeline for
completing the appraisal process, including completion within 4 months
after the umpire is selected. The bill tolls the timelines for certain contract
provisions while the appraisal process is pending.
The bill also specifies information that must be provided to an
insured with respect to an insurer's initial review of a claim. An insurer
shall provide written evidence supporting an initial coverage
determination. If the amount of loss is disputed, the insured may submit
third-party damage assessments and the insurer shall reprocess the claim,
taking into account the third-party damage assessments.
The bill declares that it is an unfair method of competition and
unfair or deceptive act or practice in the business of insurance to willfully
or repeatedly violate the provisions of the bill concerning the appraisal
clause process for policies.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 10-3-1104, add2
(1)(uu) as follows:3
10-3-1104. Unfair methods of competition - unfair or deceptive4
practices - rules - definitions.5
(1) The following are defined as unfair methods of competition6
and unfair or deceptive acts or practices in the business of insurance:7
(uu) A WILLFUL OR REPEATED VIOLATION OF SECTION 10-4-1258
CONCERNING THE APPRAISAL CLAUSE PROCESS FOR HOMEOWNER 'S9
INSURANCE POLICIES OR CONTRACTS.10
SECTION 2. In Colorado Revised Statutes, add 10-4-125 as11
follows:12
HB26-1247-2-
10-4-125. Homeowner's insurance - dispute of claims - damage1
validation through third-party assessment - appraisal process in2
policies and contracts - definitions.3
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE4
REQUIRES:5
(a) "APPRAISER" MEANS AN INDIVIDUAL WHO IS:6
(I) LICENSED IN THE STATE AS:7
(A) A CONTRACTOR IN THE BUILDING AND CONSTRUCTION TRADES;8
(B) AN INSPECTOR;9
(C) A PUBLIC ADJUSTER; OR10
(D) AN ATTORNEY;11
(II) AN IN-HOUSE INSURANCE COMPANY ADJUSTER; OR12
(III) AN INDEPENDENT INSURANCE ADJUSTER.13
(b) "COVERED PROPERTY" MEANS A NAMED PROPERTY UNDER A14
POLICY OR CONTRACT OF HOMEOWNER'S INSURANCE.15
(c) "FAIR AND COMPETENT" MEANS AN APPRAISER OR UMPIRE:16
(I) IS NOT A PARTY TO THE INSURANCE POLICY OR CONTRACT;17
(II) DOES NOT HAVE A FINANCIAL INTEREST THAT IS CONDITIONED18
UPON THE OUTCOME OF THE APPRAISAL;19
(III) IS NOT A CURRENT EMPLOYEE OF THE INSURED OR INSURER ;20
AND21
(IV) IS NOT A FAMILY MEMBER OR AN INDIVIDUAL WITH WHOM THE22
INSURED HAS A PERSONAL RELATIONSHIP THAT COULD REASONABLY23
SUGGEST BIAS.24
(d) "HOMEOWNER'S INSURANCE" HAS THE MEANING SET FORTH IN25
SECTION 10-4-101.5 AND INCLUDES A POLICY OR CONTRACT THAT COVERS26
A SINGLE -FAMILY HOME THAT IS USED AS A PRIMARY RESIDENCE , A27
HB26-1247-3-
SECONDARY RESIDENCE, OR A RENTAL PROPERTY.1
(e) "INSURED" MEANS A HOMEOWNER'S INSURANCE POLICYHOLDER2
OR THEIR DESIGNATED REPRESENTATIVE.3
(f) "INSURER" MEANS AN INSURER OF A POLICY OR CONTRACT OF4
HOMEOWNER'S INSURANCE ON THE COVERED PROPERTY AND INCLUDES5
THE FAIR PLAN ASSOCIATION CREATED IN SECTION 10-4-1804.6
(g) "T HIRD-PARTY DAMAGE ASSESSMENT " MEANS A WRITTEN7
DAMAGE ASSESSMENT OR REPAIR ESTIMATE FROM A QUALIFIED ,8
INDEPENDENT COMPANY OF AN INSURED'S CHOICE.9
(h) "UMPIRE" MEANS AN APPRAISER OR RETIRED JUDGE SELECTED10
JOINTLY BY AN INSURED'S APPRAISER AND AN INSURER'S APPRAISER, OR BY11
A COURT OF COMPETENT JURISDICTION , AFTER AN APPRAISAL CLAUSE IS12
INVOKED.13
(2) (a) W ITHIN FOURTEEN DAYS AFTER AN INSURER HAS14
INVESTIGATED A CLAIM AND MADE AN INITIAL COVERAGE15
DETERMINATION, THE INSURER SHALL PROVIDE TO THE INSURED , IN16
WRITING, EVIDENCE SUPPORTING THE INITIAL COVERAGE DETERMINATION,17
INCLUDING POLICY OR CONTRACT PROVISIONS RELIED UPON BY THE18
INSURER, AND ADJUSTER OR CONSULTANT REPORTS PROCURED DURING19
THE INVESTIGATION.20
(b) I F AN INSURED DISPUTES THE INSURER 'S INITIAL COVERAGE21
DETERMINATION, THE INSURED MAY SUBMIT THIRD -PARTY DAMAGE22
ASSESSMENTS. UPON RECEIPT OF AN INSURED 'S THIRD -PARTY DAMAGE23
ASSESSMENT, THE INSURER SHALL CONSIDER THE INFORMATION PROVIDED24
IN THE DAMAGE ASSESSMENT IN GOOD FAITH AND CONDUCT AN ON -SITE25
REINSPECTION OF THE PROPERTY WITHIN FORTY-FIVE DAYS AFTER RECEIPT26
OF THE THIRD-PARTY DAMAGE ASSESSMENT.27
HB26-1247-4-
(c) WITHIN TWENTY-EIGHT DAYS AFTER A REINSPECTION OF THE1
PROPERTY REQUIRED PURSUANT TO SUBSECTION (2)(b) OF THIS SECTION2
IS COMPLETED , THE INSURER SHALL EITHER APPROVE THE CLAIM OR3
PROVIDE VALID AND SPECIFIC REASONS FOR DENIAL OF THE CLAIM IN4
REFERENCE TO THE POLICY OR CONTRACT.5
(3) IF THERE IS A DISPUTE OVER THE AMOUNT OF LOSS, EITHER THE6
INSURED OR THE INSURER MAY MAKE A WRITTEN REQUEST TO INVOKE THE7
APPRAISAL CLAUSE OF THE POLICY OR CONTRACT , AS DESCRIBED IN8
SUBSECTION (4) OF THIS SECTION.9
(4) (a) EACH POLICY OR CONTRACT OF HOMEOWNER'S INSURANCE10
ISSUED OR RENEWED IN THE STATE ON OR AFTER JANUARY 1, 2027, MUST11
INCLUDE A CLAUSE AUTHORIZING AN INSURER OR INSURED TO INVOKE A12
MANDATORY AND BINDING APPRAISAL PROCESS IN COMPLIANCE WITH THIS13
SECTION TO SETTLE A DISPUTE OVER THE AMOUNT OF LOSS , CAUSATION,14
OR NECESSARY SCOPE OF REPAIR OR REPLACEMENT OF PROPERTY . THE15
APPRAISAL PROCESS DOES NOT DETERMINE COVERAGE UNDER THE TERMS16
OF THE POLICY OR CONTRACT.17
(b) T HE APPRAISAL CLAUSE MUST INCLUDE THE FOLLOWING18
PROVISIONS:19
(I) T HE RIGHT OF THE INSURED AND INSURER TO CHOOSE THEIR20
OWN FAIR AND COMPETENT APPRAISER WITHIN TWENTY-ONE DAYS AFTER21
RECEIPT OF THE WRITTEN REQUEST TO INVOKE THE APPRAISAL CLAUSE;22
(II) THE JOINT SELECTION OF A FAIR AND COMPETENT UMPIRE BY23
THE INSURED'S APPRAISER AND THE INSURER 'S APPRAISER PRIOR TO THE24
PARTIES' APPRAISERS COMMENCING DISCUSSION OR NEGOTIATIONS UNDER25
THE APPRAISAL CLAUSE. IF THE INSURED'S APPRAISER AND THE INSURER'S26
APPRAISER CANNOT AGREE TO THE SELECTION OF AN UMPIRE WITHIN27
HB26-1247-5-
TWENTY-ONE DAYS, EITHER PARTY MAY PETITION A COURT OF COMPETENT1
JURISDICTION IN THE JURISDICTION IN WHICH THE PROPERTY IS LOCATED2
TO SELECT AN UMPIRE FROM AMONG THOSE PRESENTED BY THE INSURED'S3
APPRAISER AND THE INSURER 'S APPRAISER OR OF THE COURT 'S OWN4
CHOOSING.5
(III) THE AMOUNT AGREED UPON IS THE AMOUNT OF LOSS. IF THE6
APPRAISERS FAIL TO AGREE, THE DIFFERENCES BETWEEN THE APPRAISALS7
MUST BE SUBMITTED TO THE UMPIRE. THE AFFIRMATIVE VOTE OF ANY TWO8
OF THE THREE PARTICIPANTS IN THE APPRAISAL PROCESS WILL SET THE9
AMOUNT OF LOSS. THE APPRAISAL PROCESS MUST BE RESOLVED BY THE10
APPRAISERS, OR AN APPRAISER AND THE UMPIRE , WITHIN ONE HUNDRED11
TWENTY DAYS AFTER THE SELECTION OF THE UMPIRE.12
(IV) THE APPRAISAL PROCESS AND AUTHORITY GRANTED TO THE13
APPRAISERS OR UMPIRE MAY BE EXPANDED OR MODIFIED ONLY BY14
WRITTEN, MUTUAL CONSENT SIGNED BY BOTH THE INSURED AND INSURER;15
AND16
(V) W ITH RESPECT TO PAYMENT FOR SERVICES AND EXPENSES17
RELATING TO THE APPRAISAL PROCESS, EACH PARTY SHALL:18
(A) PAY ITS OWN APPRAISER;19
(B) P AY THE EXPENSES FOR ATTORNEYS OR CONSULTANTS20
RETAINED BY THE PARTY; AND21
(C) SHARE EQUALLY THE EXPENSES OF THE UMPIRE.22
(5) U NTIL THE APPRAISAL PROCESS IS CONCLUDED , THE23
FOLLOWING POLICY OR CONTRACT TIMELINES ARE TOLLED:24
(a) THE RECOVERING OF APPLICABLE REPLACEMENT COST VALUE25
BENEFITS, CODE COVERAGES, AND ADDITIONAL COVERAGES;26
(b) THE TIME LIMIT WITHIN WHICH AN INSURED MAY BRING SUIT27
HB26-1247-6-
AGAINST THE INSURER; AND1
(c) THE TIME LIMIT WITHIN WHICH AN INSURED MUST MAKE THE2
REPAIRS.3
(6) (a) A HOMEOWNER 'S INSURANCE POLICY OR CONTRACT ,4
INCLUDING ANY ENDORSEMENT , MUST NOT INCLUDE A PROVISION THAT5
PROHIBITS AN INSURED FROM CONTRACTING WITH A PUBLIC ADJUSTER OR6
ATTORNEY FOR SERVICES.7
(b) A N INSURED IS NOT REQUIRED TO ENTER INTO A CONTRACT8
DESCRIBED IN SUBSECTION (6)(a) OF THIS SECTION.9
(7) A VIOLATION OF THIS SECTION CONSTITUTES AN UNFAIR10
METHOD OF COMPETITION OR AN UNFAIR OR DECEPTIVE ACT OR PRACTICE11
IN THE BUSINESS OF INSURANCE PURSUANT TO SECTION 10-3-1104 (1)(uu).12
SECTION 3. Act subject to petition - effective date -13
applicability. (1) This act takes effect January 1, 2027; except that, if a14
referendum petition is filed pursuant to section 1 (3) of article V of the15
state constitution against this act or an item, section, or part of this act16
within the ninety-day period after final adjournment of the general17
assembly, then the act, item, section, or part will not take effect unless18
approved by the people at the general election to be held in November19
2026 and, in such case, will take effect January 1, 2027, or on the date of20
the official declaration of the vote thereon by the governor, whichever is21
later.22
(2) This act applies to policies or contracts of homeowner's23
insurance issued or renewed on or after the applicable effective date of24
this act.25
HB26-1247-7-