In Colorado, a house owner’s time restrict for submitting a breach of contract lawsuit in opposition to an insurance coverage firm for an unpaid or underpaid declare can differ from the deadlines imposed on enterprise house owners and owners associations. 

Contractual Breach of Insurance coverage Coverage: 

Underneath Colorado Revised Statute § 13-80-101(1), a lawsuit primarily based on a breach of contract have to be filed inside three years after the reason for motion accrues. Nonetheless, insurers have the flexibility to contractually scale back this era. Notably, they will shorten it to as transient as six months from the date of loss.¹ Generally, insurance coverage carriers scale back this era to at least one to 2 years. 

In 2014, the Colorado State Legislature enacted Colorado Revised Statute § 10–4–110.8(12)(a) to safeguard owners. This provision prevents insurance coverage carriers from diminishing the three-year statute of limitations interval for claims made by owners. Because of this, insurers are prohibited from issuing or renewing insurance policies that require owners to sue inside a timeframe shorter than the legally prescribed statute of limitations.

(12)(a) However any provision of a house owner’s insurance coverage coverage that requires the policyholder to file swimsuit in opposition to the insurer, within the case of any dispute, inside a time frame that’s shorter than required by the relevant statute of limitations offered by regulation, a house owner could file such a swimsuit inside the time frame allowed by the relevant statute of limitations . . . 

(b) On and after January 1, 2014, an insurer shall not problem or renew a house owner’s insurance coverage coverage that requires the policyholder to file swimsuit in opposition to the insurer, within the case of any dispute, inside a time frame that’s shorter than required by the relevant statute of limitations offered by regulation. 

Within the context of householders associations, it seems that people who personal townhomes or condominiums might not be categorised as “owners” below § 10–4–110.8(12)(a). Whereas there isn’t any controlling regulation on this problem, not less than three Colorado Federal District trial courts have held {that a} business entity holding a “Enterprise Proprietor’s Coverage” for townhomes or condominiums doesn’t fall inside the scope of a “house owner” as contemplated by the statute.² The courts reasoned that the statute’s language particularly targets “house owner’s insurance coverage insurance policies” and makes no provision for business or enterprise insurance policies, even when they cowl residential constructions like townhomes or condominiums. In gentle of this statutory interpretation, these trial courts concluded that Colo. Rev. Stat. § 10–4–110.8(12)(a) was inapplicable to insurance coverage insurance policies held by house owner’s associations which might be primarily business in nature. 

It is very important observe that the timing for the statute of limitations for owners, enterprise house owners, and HOAs begins from the date of loss, not the date of discovery or the date of reporting.

This is the reason it’s important to overview an authorized copy of the coverage. Failing to satisfy key deadlines might jeopardize your declare and obtainable authorized cures.

When you’ve got questions on your declare, please contact our workplace. 

¹ Grant Household Farms, Inc. v. Colo. Farm Bureau Mut. Ins. Co., 155 P.3d 537, 538 (Colo. App. 2006); Union Well being & Accid. Co. v. Welch, 206 P. 790, 790 (Colo. 1922). 

² Pinewood Townhome Affiliation, Inc. v. Auto House owners Insurance coverage Co., 2017 WL 590294, at *2-3 (D. Colo. Feb. 13, 2017); Brookshire Downs at Heatherridge Rental. Ass’n, Inc. v. House owners Ins. Co., 324 F. Supp. 3d 1201, 1204 (D. Colo. 2018); Steeplechase II Rental. Ass’n, Inc. v. Vacationers Indem. Co., No. 17-CV-01273, 2018 WL 6571392, at *3 (D. Colo. Dec. 13, 2018).