GRAND JUNCTION, Colo. (KKCO) - Local insurance companies are blasting a bill making its way through the State Capitol, saying it will kill opportunities for economic growth.
House Bill 1394 would require insurance companies to cover faulty jobs done by construction companies.
Home Loan Investment Company says in layman's terms, that means if you got a new roof and it began to leak, not only would the insurance company have to cover the damage to things like walls and furniture like it already does -- but it would also have to cover the actual repairs to the roof, which is a responsibility that currently falls on the builder.
Home Loan says that will drive up premiums for construction companies which consequently will drive up construction costs. It believes the bill would also make insurance companies less willing to insure small builders, meaning new construction numbers could suffer.
"It takes the pride of workmanship away," says Matt Hall, vice president of the Home Loan Insurance Division. "It takes away the responsibility of doing work and it takes the business risk out of work."
The bi-partisan bill, which supporters say is meant to reform a much maligned system, had passed both chambers of the State Legislature but Thursday morning was recalled by the State Senate for further review.