§ 12-10-903 — Contract requirements

Colorado § 12-10-903

• Jurisdiction: Colorado
• Title 12: Professions
• Art.: Real Estate

Text

(1) Every home warranty service
contract shall contain the following information:

(a) A specific listing of all items or elements excluded from coverage;

(b) A specific listing of all other limitations in coverage, including the
exclusion of preexisting conditions if applicable;

(c) The procedure that is required to be followed in order to obtain repairs or
replacements;

(d) A statement as to the time period, following notification to the company,
within which the requested repairs will be made or replacements will be provided;

(e) The specific duration of the home warranty service contract, including an
exact termination date that is not contingent upon an unspecified future closing
date or other indefinite event;

(f) A statement as to whether the home warranty service contract is
transferable;

(g) A statement that actions under a home warranty service contract may be
covered by the provisions of the Colorado Consumer Protection Act or the Unfair
Practices Act, articles 1 and 2 of title 6, and that a party to such a contract may
have a right of civil action under those laws, including obtaining the recourse or
penalties specified in those laws.

(2) (a) A home warranty service contract issued or renewed in this state on or
after July 1, 2024, that provides coverage for the replacement of a gas-fueled
appliance must include terms:

(I) Allowing the homeowner the option to replace the gas-fueled appliance
with a similar device of the homeowner's choosing that operates on electricity
rather than gas. A home warranty service contract may require a homeowner to pay
any additional cost to replace a gas-fueled appliance with an appliance that has a
cost that exceeds the cost of replacing the gas-fueled appliance with another gas-fueled appliance under the terms of the home warranty service contract; except
that any additional cost to the homeowner for the replacement electric appliance,
excluding any installation or other associated costs, must not exceed the retail cost
of the replacement electric appliance minus the retail cost of a replacement gas-fueled appliance.

(II) Providing that the home warranty service company is required to provide
a replacement appliance that satisfies the efficiency requirements set forth in
article 7.5 of title 6 and any other state law.

(b) (I) In the case of replacement of a gas-fueled furnace, HVAC system,
boiler, or water heater, a home warranty service contract must include terms that
allow the homeowner to replace the furnace, HVAC system, boiler, or water heater
with a heat pump-based system.

(II) In the case of replacement of a gas-fueled stove, a home warranty
service contract must include terms that allow the homeowner to replace the gas-fueled stove with either an electric stove or an induction stove, at the homeowner's
discretion.

Legislative History

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 716, � 1, effective October 1. L. 2023: (2) added, (HB 23-1134), ch. 43, p. 166, � 3, effective August 7.