Our home was destroyed in the Marshall Fire and we have decided to purchase a new build in a new subdivision. We sent the contract to our insurer USAA which clearly shows the total price we are paying and breaks out the amount for the lot and the dwelling, however they are disputing the land value saying it is too low. We also sent the 2022 county land assessment for our lot which was disregarded. I believe that what we actually paid for the lot should be what the insured deducts. USAA ordered an appraisal using comps that are nowhere near our new property and want to deduct that from our settlement which will essentially nullify the additional 25% home protector coverage in our policy. I am also curious as to O&L should be paid on a new home on a new lot. I am also aware that Colorado HB22-1111 now makes land deductions illegal but I have not brought that up with USAA as it is not retroactive to our disaster date. I am not sure how to proceed with USAA or what course of action we might have. USAA is essentially devaluating our rebuild by $265K which we would have been entitled to if building the same home on our fire destroyed property.
Martin, it sounds as though you have followed all the correct steps to demonstrate the appropriate value of the land. This is a very complex issue that would require a careful look at the policy language to assess what USAA owes you as there are many different policy terms at play. I would suggest that you consult with an attorney as soon as possible to make sure your rights are protected. You may also want to consider filing a complaint with the Colorado Division of Insurance: https://doi.colorado.gov/for-consumers/file-a-complaint You are correct that HB22-1111 unfortunately does not apply to Marshall fire victims. Many insurers have undervalued the rebuilds of Marshall fire victims. I suspect that USAA did not properly estimate the value of your home as it existed before the fire to begin with.