My community suffered a major hail storm that triggered a huge claim. The master insurance policy requires owners to share the multi-million dollar deductible, claiming that our HO6 policies will cover the gap. At least 5 owners have found they have policies with a buried loss assessment exclusion that prevents them from getting paid out. Should we collectively consult with an attorney?

That’s a massive financial burden to have to shoulder, especially when you and your neighbors already have a seemingly viable insurance policy. When you’re dealing with a deductible of this size, you really need to know why your insurer is pushing back—and, more importantly, whether they’re actually playing by the rules. An attorney specialized in Colorado insurance bad faith laws and HOA bylaws should be able to help with that.

There’s a few reasons why a lawyer might be able to help you with your claim. 

First, the law is actually on your side here. If a policy is confusing, Colorado courts will generally side with the homeowner. So if those loss assessment exclusions are vague or weren’t clearly explained, your insurer might not be allowed to enforce them. 

Also, if your insurer wants to use an exclusion to get out of paying, they’re the ones who have to prove that exclusion applies to your situation—not you. 

Finally, your HOA’s master policy is legally designed to be your first line of defense. Since Colorado law views the association’s insurance as primary, our attorneys can look at both policies to make sure you’re getting the full benefit of how they’re supposed to work. 

I’d definitely recommend calling us at (303) 688-0944 to schedule a consultation. By using one attorney, you can perform a comprehensive audit of the policies while presenting a unified front for negotiations. Plus, it ensures someone is specifically checking the HOA’s bylaws to see if there were any legal oversights in how these deductibles were allocated. I hope this helps.