Colorado’s Property Insurance Requirements for Common Interest Communities

May 11, 2018 By Jonathan Bukowski Condominium Associations

Similar to most states, Colorado sets forth minimum requirements of insurance for common interest communities under the Colorado Common Interest Ownership Act.

Section 38-33.3-313(1)(a) of the Act requires that the association maintain property insurance on the common elements equal to the replacement cost of the property less applicable deductibles. Where the building contains horizontal boundaries described in the declaration, Section 38-33.3-313(2) requires that the insurance also cover the units, but not the finished interior surfaces of the walls, floors, or ceilings of the units, and need not include improvements and betterments installed by unit owners. If the policy provides coverage for betterments and improvements to units, the increased charges for that coverage should be assessed by the association to those owners with betterments and improvements.

It should also be noted that fidelity coverage, to the extent reasonably available, must be maintained by an association with thirty or more units where a unit owner or employee of the association controls or disburses funds of the association.

Because Colorado does not require an association to maintain insurance for the finished surfaces and improvements of a unit, it is important for owners to identify and understand the coverage provided by the association to determine whether they should purchase additional insurance to protect themselves in the event of a loss.

Are you looking for help?

Let us help you. Call now: (877) 449-4700 | Monday – Friday, 9 AM – 5PM

Why choose Merlin Law Group?

Founded in 1985, our law firm continues to be dedicated to representing insurance policyholders throughout the United States. Collectively, our lawyers are licensed to practice in 25 states. In fact, many of Merlin Law Group’s attorneys worked for the insurance industry before joining the firm, so they bring a strong understanding of insurance company practices. Anyone can file a claim, but it takes experience, knowledge, and savvy to achieve a truly successful outcome. As The Policyholder’s Advocate®, Merlin Law Group aims to drive positive change within the insurance sector by obtaining justice for our clients and educating policyholders on how to navigate insurer bad faith tactics.

When we handle property insurance claim disputes, we hire the most experienced and qualified expert witnesses to evaluate your insurance claim and testify on your behalf. In most cases, we can advance the fees for this. Typically, we hire experts such as engineers, contractors, independent roofing consultants and other professionals to perform a thorough assessment on all possible causes of damages. This is a process that provides us with a very detailed and all-inclusive estimate for determining and justifying a proper settlement. Our use of these professional expert witnesses sets us apart from other insurance law firms.

Submit a free case review