HB 24-1011 aims to resolve an ongoing dispute between some homeowners and insurance companies ignited by the Marshall Fire

A new bill introduced by two Boulder-area Democrats could force mortgage companies in Colorado to disclose information to homeowners about the disbursement of insurance proceeds after extreme cases like the Marshall Fire.

Rep Kyle Brown, D-Boulder, who is co-prime sponsoring House Bill 24-1011 with Boulder-area Rep. Judy Amabile, told Yellow Scene Magazine that the bill is designed to bring more transparency to the insurance claims process. If passed, the bill would also create a civil cause of action for homeowners to sue mortgage companies who do not disclose information about the insurance payment process.

The first hearing for the bill is scheduled for January 25.

“This bill is a direct result of the lessons we learned during the Marshall Fire,” Brown said. “So for those folks who might face a disaster or a fire or a flood in their home in the future, this bill will provide some important protections.”

Homeowners often rely on their insurance policies to cover the cost of repairing significant damage to their home, or to completely rebuild it in extreme cases like the Marshall Fire. Navigating the process to get that insurance check can be complicated enough for the few people who own their homes outright. But it can feel like a sisyphean task for the majority of homeowners who hold mortgages.

When a mortgaged home is damaged or destroyed, insurance companies write claims checks to both the mortgage company and the homeowner because both entities have ownership interests in the property. The mortgage company is responsible for releasing the funds to the homeowner, but the terms and conditions of the release vary by institution, Brown said.

Capitol building, photo by Noah Sandoval via Unsplash

The bill would also require mortgage companies to pay homeowners any excess insurance proceeds that are left after the mortgage is paid off. For example, if a homeowner owes $200,000 on their mortgage and receives an insurance payment of $400,000 for damages incurred, then the mortgage company would be required to disburse the entire $400,000. Right now there is no state rule requiring them to do so, Brown explained.

“When people are rebuilding and repairing their homes, they need to have access to the capital that they’re entitled to under their insurance policy,” Brown said. “It allows them to rebuild their homes so that they can move on with their lives in whatever way they need.”

The bill was introduced at a time when housing affordability has become a top priority under the Gold Dome. Gov. Jared Polis noted during his State of the State address on January 11 2024 that housing is the number one issue for most voters in Colorado.

“There is a real sense of hopelessness and despair in our state around housing that’s on par, in many ways, with how people feel about the divisiveness of our national politics,” Polis said.

Colorado democrats have said they will try to pass multiple bills to help local governments access the tools to meet their affordable housing goals instead of pushing through one large legislative package like last year, Colorado Newsline reported.

“That’s something that is going to provide a roadmap for each individual community and region, to know what the need is, what the progress is in meeting that need and what they need to do from a menu of options to get to the goal,” Senate President Steve Fenberg, D-Boulder, told Newsline.

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Month in Review

The darkest days of modern American politics seem to be behind us, as the #GOPCoup failed, Donald J. Trump left office, and Joe Biden became the 45th President of the United States. We say “seem” because after running on immediate $2000 survival checks, getting kids out of concentration camp cages, and supporting student loan forgiveness he is…checks notes…doing none of those things. 2022 looks to be a GOP bloodbath. • As of February 18th, “federal prosecutors say they’ve charged approximately 234 people for their alleged roles in the riot and opened over 400 investigations into possible criminals,” it is reported. Interestingly, nearly 60 percent of the people charged over their alleged involvement in the coup attempt on the U.S. Capitol on January 6 had a history of financial troubles, according to a new report. • Boulder County rescued a man who was injured while sledding. Counting the good luck, we reflect on the numerous people lost this season in Colorado’s backcountry, most lost to avalanches. Stay safe out there. • As of February 6th, Boulder County Public Health has begun roll out of mobile coronavirus vaccine mobile clinics. The effort is to help marginalized community members get inoculated as soon as possible. • Erie residents, and others, are raising concerns over the proposed Boulder County Composting Facility, set to be built on the Rainbow Farms Open Space land. The land was originally purchased by the county with the goal of holding it as open space in perpetuity. The debate is ongoing. • A local resident reported Longmont PD refusing to move a bag of Fentanyl that was found in their home. Officials say the bag was later removed, during a separate call. Officials also claimed that the bag was not fentanyl, but the resident who found it posted a picture of an alleged lab result claiming it was. Meanwhile, New Vista High School in Boulder held an emergency ZOOM meeting after several teens died following use of ‘fake’ Xanax or Opiate pills that were laced with Fentanyl. • The Governor gave his third State of the State address. Generally well received, he was clear that, while the pandemic isn’t through with Colorado, we will survive and come out on the other side stronger than ever. • A couple, last name Wells – you can’t make this up – sued Boulder County over the fracking moratorium. John and Valorie Wells, who own some mineral rights under city-owned land near Boulder Reservoir, allege that Boulder’s ban on oil and gas development violates the Fifth Amendment’s rule against taking private property without compensation, according to a news release from the Public Trust Institute.

Small Talk

“Several Boulder teens have died in the past few weeks from overdose on ‘fake’ Xanax or Opiate pills that are laced with Fentanyl and we are heartbroken”

– Avani Dilger, with New Vista High School

“So the state of the state? This past year we’ve been bruised, battered and shaken to our core — but nevertheless the state of Colorado remains strong… And coming out of this traumatic year, we are poised for bold transformational change. If we seize the opportunity here in this chamber, we can live up to our fullest potential to truly create a Colorado for All.”

– Governor Jared Polis, third State of the State address

“This ban has deprived mineral owners of their property without just compensation, which violates the United States constitution. Boulder has effected a ‘taking’ of mineral rights within its city limits and underneath city-owned land, and owes mineral right owners compensation for this taking”

– Wells, lawsuit claim

“Who says this is storage? These are ready for use”

– Lauren Boebert, CD3, on Twitter after being widely mocked for haphazardly stacking firearms on a bookshelf behind her during a ZOOM meeting for the House Natural Resources Committee

“I’m so honored to be elected chair of the National Parks, Forests and Public Lands Subcommittee as we begin critical work to preserve our public lands, restore our forests and protect our communities from record-breaking wildfires”

– Joe Neguse, CD2, 1st Coloradan and 1st African American to chair the subcommittee on national parks, forests and public lands

By The Numbers

234

#of GOP seditionists who have been charged. Another 400 investigations are ongoing.

40

# of GOP #bluelivesmatter who are charged with assaulting or murdering law enforcement officers.

31

Days, at the time of this writing, of the Biden administration and kids are still in cages.

18,410

Cases, at the time of publication, of Coronavirus cases in Boulder County, overall. Or, 5.6 percent of the population.

245

Deaths, at the time of this writing, from Coronavirus in Boulder County. Or 1.3 percent of cases.

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