Given the increasing risk of wildfires impacting Colorado neighborhoods and residents’ struggles in managing and receiving payment on their insurance claims, Colorado recently passed House Bill 22-1111 which provides additional assistance and insurance payment requirements for wildfire victims. The bill establishes new coverage and payment requirements for insurance companies in the event a policyholder experiences a total loss due to a fire disaster as declared by the Colorado governor. Always remember to review your insurance policy as it may contain additional terms or benefits beyond what is required by law.

Dwelling Coverage: Under the new legislation, insurance companies must now allow wildfire victims 36 months with two 6-month extension opportunities (as opposed to the prior 12-month requirement) in order to rebuild or relocate following a wildfire and still recover depreciation. In addition, insurers may not limit or deny a policyholder’s recovery of ordinance and law and extended replacement cost coverages on the basis that the policyholder is rebuilding in a different location or purchasing a new home instead of rebuilding. Insurance companies must also reimburse their policyholders for the cost of debris removal services within 60 days of receiving a receipt for those services.

Additional Living Expense Coverage: The policy must also provide for at least 24 months of additional living expense reimbursement with two 6-month extension opportunities. 

Contents Coverage: The prior Colorado statute required reimbursement of at least 30% of the value of the policyholder’s contents without having to supply a written inventory to the insurance company. Under the new legislation, the insurance company is now required to pay a minimum of 65% of the value of content coverage without the policyholder needing to provide a written inventory of the contents. This is just the statutory minimum - the actual amount owed upfront may be more depending on the text of the insurance policy or by agreement with your insurance company. 

Once the victim of a wildfire submits an inventory of lost contents, the new legislation requires insurance companies to request any additional information from the victim within 30 days, and to pay out claims for undisputed, insured items within 30 days after receipt of the inventory list. The policy must also provide policyholders with the greater of 365 days after the expiration of additional living expense coverage or 36 months after the insurer provided the first actual cash value payment to recover depreciation on contents.

Underinsurance Assistance: If the dwelling limits of insurance are insufficient to rebuild the home, under the new legislation wildfire victims can use other coverages to supplement the dwelling limit. 

House Bill 22-1111 does not apply to previous wildfires such as the Marshall Fire. However, many insurers told the Colorado Division of Insurance that they would provide Marshall Fire victims with additional benefits, assistance, and extensions on their coverages. If you have questions about how best to leverage these agreements, the attorneys at MoGo LLC can help! 

How to request a copy of your policy

Under current Colorado law, your insurance company must give you an electronic copy of your policy within three business days of a written request.

For example, send an email to your adjuster stating:

“Please send me a copy of my insurance policy, including the declaration page and any endorsements, within three business days.”

Your insurance company owes you what is stated in your insurance policy. If you have any questions and/or are struggling to receive the information or benefits owed under your insurance policy, contact the attorneys at MoGo LLC for assistance.

In May 2022, Colorado lawmakers passed a law imposing new restrictions on employee non-compete clauses. The new statutory amendment goes into effect on August 10, 2022.

HB 22-1317 provides for new income-based limits for employees against whom noncompete and antisolicitation clauses may be enforceable. Noncompetes are only enforceable against employees who meet the threshold for highly compensated workers, currently $101,250.00 (increasing annually). Antisolicitation clauses (clauses restricting an employee’s ability to recruit the employer’s customers) are only valid against employees making 60% or more of the threshold amount for highly compensated workers, currently $60,750.00. Even for workers who make more than $101,250.00, noncompete and nonsolicitation clauses must be “no broader than reasonably necessary to protect the employer’s legitimate interests in protecting trade secrets” pursuant to C.R.S. § 8-2-113(2)(d).

The new law requires Colorado law to apply in determining whether a noncompete clause is enforceable against an employee who, at the time of termination of employment, lived or worked in Colorado. Workers also may not be required to adjudicate the enforceability of the covenant outside of Colorado. C.R.S. § 8-2-113(6).

Employers should carefully consider their noncompete and nonsolicitation agreements to assess their compliance with Colorado employment law. Violations of the noncompete law can lead to criminal penalties, liability for actual damages, and a $5,000.00 penalty per harmed worker or prospective worker. If you have questions about what changes to make in light of this legislative change, the attorneys at MoGo LLC would love to review your business’s practices and agreements with you.

If you are an employee with questions about whether your noncompete is enforceable, the attorneys at MoGo LLC can help! Get in touch for a free consultation.

With so many newcomers to the Colorado region, some people may be unaware of the substantial risk posed by hailstorms every year. Colorado’s Front Range (primarily up and down the I-25 corridor) is located in what is coined “Hail Alley,” and residents can generally expect several hailstorms every year. Colorado’s hail season generally kicks off in the spring and continues until fall. Property damage due to hail can surpass $200 million after a severe storm, and has even been known to creep into the billions (such as after the legendary May 8, 2017 storm).

So what do you need to do to protect your property from the risk of hail damage?

1. Ask for a copy of your insurance policy.

Under Colorado law, your insurance company must give you an electronic copy of your policy within three business days of a written request.

Send an email to your insurance company or insurance agent stating:

“Please send me a copy of my insurance policy, including the declaration page and any endorsements, within three business days.”

2. Double check your insurance coverages.

Review your coverages with your insurance agent, making sure that your limits of insurance are adequate considering increasing supply and labor costs so that you are not caught in a situation where you are underinsured. You should also review your deductible to ensure that you have the one best suited to you for hail damage -- typically home and business owners will benefit from having a fixed fee deductible rather than a percentage-based deductible. Consider asking your insurance agent if they would recommend adding any endorsements, such as for ordinance and law coverage (which will typically cover increased costs of construction to comply with local building code) or a home business endorsement (which would cover damage to personal property used for any home business). And of course, make sure that you have a replacement cost policy so that if you need to replace any damaged items, your insurer will pay for the replacement cost and not the depreciated actual value of the damaged property.

3. Schedule regular roofing inspections.

Establishing a baseline of how your roof and its appurtenances look and are maintained can be crucial to showing your insurance carrier that your roof was damaged in a particular storm. Insurance policies do not cover “wear and tear,” (gradual deterioration of a structure resulting from normal use). Occasionally insurance carriers will deny a claim because they think that roof damage is from wear and tear and not from a hail storm. If your roof is regularly inspected, you can present this information to your insurance carrier and demonstrate that the damage occurred in a certain timeframe or storm. 

4. If a hail storm occurs in your area, request a free roof inspection from a trusted contractor.

Many people who live in the Front Range have seen salesmen knocking on doors and offering free roof inspections. Some of these salesmen represent companies that are not local to Colorado and who may not be compliant with Colorado roofing laws. Do your research and find a local roofing company that you trust, with good reviews and a positive Better Business Bureau rating. Your roofer will often end up discussing your insurance claim with your insurance carrier, so you certainly want to hire someone who is diligent, honest, and up to the task.

By doing these 4 things, we hope that you are better prepared if your home or business is hit by severe hail. If you would like to know more about your rights when interacting with your insurance carrier, get in touch!

Wildfires are a consistent risk in Colorado. More and more, those fires are creeping into residential areas. In mid-October, 2020, 366 homes in Grand County were scorched by the East Troublesome Fire -- a fire so big and powerful it jumped the Colorado divide and killed two residents. On December 30, 2021, Colorado citizens next watched in horror as the Marshall Fire raged through residential areas in Boulder County, damaging over a thousand homes.

If you are one of the thousands of Colorado residents impacted by the Marshall Fire or East Troublesome Fire, then you may be facing hurdles getting your insurance company to pay the full value of your claim. Remember, when reviewing your insurance claim with your insurance agent, the most important source of information is your insurance policy. Some terms that might impact your recovery from your insurance company for these devastating losses are:

Contents coverage: In the event of a total loss, you are entitled to at least 30% of the value of your contents without having to supply a written inventory to your insurance company. This may be more depending on the text of your insurance policy or by agreement with your insurance company.

Additional living expense or loss of use coverage: Covers increased living expenses during the time required to repair or replace damage to the policyholder’s home following an insured loss or, if the policyholder permanently relocates, the time required to move the policyholder’s household to a new location. All homeowners’ insurance policies for replacement cost must include 12 months of additional living expense coverage, and some may cover you for a longer period of time.

Extended replacement cost coverage: Pays a designated amount above your policy limit when necessary under current building conditions (ex., supply chain issues, increased costs). Your insurance company must at least offer you this type of coverage when issuing your policy.

Ordinance or law Coverage: Increased coverage to comply with building codes and ordinances. Your insurance company must also at least offer this type of coverage when issuing your policy.

How to request a copy of your policy

Under Colorado law, your insurance company must give you an electronic copy of your policy within three business days of a written request.

For example, send an email to your adjuster stating:

“Please send me a copy of my insurance policy, including the declaration page and any endorsements, within three business days.”

Your insurance company owes you what is said in the insurance policy. They also should adjust your claim with your best interests in mind. If you are struggling to get the benefits you are owed, or if you’d like more information about your rights and how to protect them, contact MoGo LLC.