The Colorado Insurance Commissioner will get a standing ovation at the Rocky Mountain Association of Public Insurance Adjusters (RMAPIA) meeting next week. His office filed a new bulletin this week regarding extending timelines for repair and replacement. I noted in Rocky Mountain Public Insurance Adjusters Meet on November 3 & 4 in Denver, that the Colorado Insurance Commissioner will be the opening act before the “headliner” shows up.
The issue of delay in rebuilding, repair, and replacement of property following a loss is significant. Last week, I asked a Louisiana mayor if he meant to say “40 days” when he told me that their roofing materials were ordered, but not expected for delivery for another 40 weeks. He laughed and said he asked the same clarifying question when he was told it was 40 weeks. Protecting a large commercial structure from further damage when the significantly blown away roof will not be repaired for 40 weeks is not an easy task. Throughout the country, supply chain issues are creating delays for all kinds of items, including building materials.
As a result, some policies which require repair or replacement within certain timeframes are raising concerns if insurers will try to deny coverage for benefits if those time periods are not met. The Colorado Division of Insurance is trying to get ahead of this issue by issuing Bulletin B-5.42, which states in part:
In the event of a catastrophic disaster, an insurer shall act in good faith and shall consider any adverse circumstances beyond the insured’s control that may require maintaining and extending certain policyholder benefits beyond those afforded by the timelines provided in the underlying insurance policy.
In determining whether certain policyholder benefits should be extended, the insurer shall take into account all of the circumstances affecting the claim including those not directly caused by the catastrophic disaster. Such circumstances include, but are not limited to, seasonal weather issues, labor and material shortages, and insurer delays in providing estimates and actual cash value payments.
If the insurer has caused delays in providing the initial estimate of damages and/or the actual cash value payment, the Division directs the insurer to act in good faith and toll the time period that the policyholder can recover ALE benefits and collect recoverable depreciation by a time period equivalent to the delayed action by the insurer.
I hope to see you in Denver next week. My crew is preparing a “spicy” show about the most important property insurance claims issues in the Rocky Mountain states.
Thought For The Day
Most of the bad things that have happened to me happened in Denver.