<!-- wp:group {"align":"wide","layout":{"type":"default"}} -->
<div class="wp-block-group alignwide"><!-- wp:paragraph -->
<p>In 2007, Colorado took a significant step to safeguard the rights of insurance consumers by enacting <a href="https://leg.colorado.gov/sites/default/files/images/olls/2007a_sl_249.pdf">House Bill 07-1104 (HB07-1104)</a>. This legislation was designed to address concerns about property insurance claims and the unfair practices within the industry, particularly regarding property restoration claims after events like fires. If you are going through the insurance claims process in Colorado, understanding the key provisions of HB07-1104 is crucial.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>HB07-1104 was introduced to counteract insurance companies' tendencies to exert undue influence over policyholders' choice of restoration companies following property damage events. Prior to the passage of this bill, insurance companies often pressured or incentivized homeowners to use specific contractors for property restoration, potentially compromising the quality of repairs, homeowner health and safety or inflating costs.</p>
<!-- /wp:paragraph --></div>
<!-- /wp:group -->

<!-- wp:media-text {"align":"wide","mediaId":17651,"mediaLink":"https://integrityaq.com/?attachment_id=17651","mediaType":"image","mediaWidth":34} -->
<div class="wp-block-media-text alignwide is-stacked-on-mobile" style="grid-template-columns:34% auto"><figure class="wp-block-media-text__media"><img src="https://integrityaq.com/wp-content/uploads/2024/05/understanding-hb07-1-1024x1024.jpg" alt="property insurance claim for fire or water restoration" class="wp-image-17651 size-full"/></figure><div class="wp-block-media-text__content"><!-- wp:heading -->
<h2 class="wp-block-heading"><strong>What are the Key Provisions that protect homeowners dealing with a fire or water restoration claim?</strong></h2>
<!-- /wp:heading --></div></div>
<!-- /wp:media-text -->

<!-- wp:group {"align":"wide","layout":{"type":"default"}} -->
<div class="wp-block-group alignwide"><!-- wp:paragraph -->
<p>1. Freedom of Choice: HB07-1104 grants homeowners the explicit right to choose their own restoration contractor without interference from insurance companies. This provision ensures that policyholders have the autonomy to select a contractor that best suits their needs and preferences.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>2. Protection Against Coercion: The legislation prohibits insurance companies from coercing, threatening, or incentivizing policyholders to use particular restoration companies. <em>Additionally, insurers are barred from imposing disincentives or misinforming homeowners to steer them toward preferred contractors.</em></p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>3. Prompt Claim Payment: HB07-1104 mandates that insurance companies promptly pay claims for property restoration, regardless of the contractor chosen by the policyholder. Insurers cannot delay or deny claim payments based on the homeowner's decision to hire a non-preferred contractor.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>4. Disclosure of Business Arrangements: When recommending a restoration company, insurance adjusters <em>must disclose any financial interests or affiliations</em> they have with the recommended firm. This transparency ensures that homeowners are aware of any potential conflicts of interest.</p>
<!-- /wp:paragraph --></div>
<!-- /wp:group -->

<!-- wp:group {"align":"wide","layout":{"type":"default"}} -->
<div class="wp-block-group alignwide"><!-- wp:heading -->
<h2 class="wp-block-heading"><strong>What has been the Impact on Colorado Homeowners and their Property Insurance Claims?</strong></h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>HB07-1104 has had a significant impact on insurance claims processes in Colorado, empowering homeowners and protecting their rights in property restoration matters. By allowing consumers to freely choose their restoration contractors, the legislation promotes competition, transparency, and accountability within the insurance industry.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>The legislation has also helped to mitigate conflicts of interest that may arise when insurance companies prioritize cost-saving measures over homeowners' best interests. By ensuring that claim payments are made promptly and fairly, HB07-1104 fosters trust between insurers and policyholders while promoting the timely restoration of damaged properties.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>House Bill 07-1104 represents a landmark achievement in consumer protection within the insurance industry. By enshrining the rights of homeowners to choose their own restoration contractors and prohibiting coercive practices by insurers, the legislation has helped to level the playing field for policyholders in Colorado. As homeowners navigate insurance claims processes, understanding the provisions of HB07-1104 can empower them to assert their rights and ensure a fair and transparent resolution of their claims.</p>
<!-- /wp:paragraph --></div>
<!-- /wp:group -->

<!-- wp:heading {"align":"wide"} -->
<h2 class="wp-block-heading alignwide"><strong>Ensuring Quality and Independence</strong> with a Third-Party Restoration Contractor</h2>
<!-- /wp:heading -->

<!-- wp:group {"align":"wide","layout":{"type":"default"}} -->
<div class="wp-block-group alignwide"><!-- wp:paragraph -->
<p>When an insurance company pressures or incentivizes using specific contractors for a restoration job, it creates a conflict of interest that can significantly impact the quality and fairness of the restoration process.</p>
<!-- /wp:paragraph -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li><strong>Unbiased Assessment:</strong> A third-party contractor has no ties to the insurance company and can provide an independent evaluation of the damage and necessary repairs, ensuring the homeowner gets a fair and accurate estimate.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Freedom of Choice:</strong> Homeowners have the right to choose their own contractors, as mandated by laws such as Colorado HB07-1104. This right ensures they are not coerced into accepting a suboptimal service.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Personal Preference:</strong> Homeowners may prefer a contractor they have researched and vetted, ensuring trust and satisfaction with the restoration process.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Objective Repairs:</strong> Insurance companies may have financial agreements with their preferred contractors, leading to potential bias in repair decisions. An unaffiliated contractor works solely in the homeowner's best interest.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Transparency:</strong> Third-party contractors provide transparency in their work and estimates, reducing the risk of hidden agendas influenced by insurance companies.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Thorough Repairs:</strong> Independent contractors are more likely to conduct thorough repairs, addressing all damages comprehensively, rather than just the minimum required to meet possible insurance payout limits.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Quality Materials:</strong> They are more likely to use quality materials and skilled labor, ensuring the longevity and integrity of the restoration work.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Focused Attention:</strong> Unaffiliated contractors rely on customer satisfaction and referrals for their business, often leading to better customer service and responsiveness.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Direct Communication:</strong> Homeowners can communicate directly with the contractor without intermediaries, ensuring clear and direct dialogue about the restoration process and any concerns.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Accountability:</strong> If a third-party contractor fails to meet standards, homeowners have more legal recourse compared to dealing with a contractor heavily tied to their insurance company.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Fair Compensation:</strong> A third-party opinion can help ensure that the homeowner receives fair compensation from their insurance company, as it provides an unbiased estimate of the repair costs.</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:paragraph -->
<p>Choosing an unaffiliated restoration contractor empowers homeowners to take control of their restoration process, ensuring quality, fairness, and satisfaction. It allows for unbiased assessments and comprehensive repairs, protecting the homeowner's interests and ensuring their property is restored to its best possible condition.</p>
<!-- /wp:paragraph --></div>
<!-- /wp:group -->

<!-- wp:paragraph -->
<p>*While we aim to offer informative content, please note that we are not legal experts. If you have concerns about your insurance claim's legality, we recommend consulting a qualified attorney specializing in insurance law.</p>
<!-- /wp:paragraph -->

<!-- wp:spacer {"height":"53px"} -->
<div style="height:53px" aria-hidden="true" class="wp-block-spacer"></div>
<!-- /wp:spacer -->