On May 12, COL LEG enacted bill on construction defect claims.
COL LEG enacted HB 25-1272, the Colorado American dream act, on defect claims.
Amends COL LEG 13-20-802.5 (definitions), defines incentive program, program claim, COL LEG 13-20-803.5 (notice of claim process-duty to mitigate), claimant obligations.
Bill Provisions
Applies to construction professionals participating in the multifamily incentive program.
Requires construction professionals to provide copies of insurance policies related to construction defect claims that were in force during construction and date of claim.
Prohibits insurers from canceling, denying, or reducing coverage of construction professional policies based on policyholder offering to repair or settle defect claims.
Any construction professional settlement or repair agreement with construction defect claimant that affects coverage is subject to approval by the insurer of the policy.
Legislative History
On Feb. 18, 2025, bill introduced in House; on Mar. 31, 2025, bill passed in House.
On Apr. 3, 2025, bill introduced in Senate; on Apr. 17, 2025, amended bill passed.
On Apr. 23, 2025, bill concurred in House; on May 12, 2025, governor signed bill.
Effectiveness
Effective 12:01 am day after expiration of 90-period after final general assembly adjournment, which adjourned May 7, so effective date would be Aug. 6, 2025.
Regulators
COL LEG
Entity Types
Corp; Ins
Reference
Bill HB25-1272, 5/12/2025; Citation: COL LEG 13-20-802.5; COL LEG 13-20-803.5;
