Homeowner Association Sues QBE for $2M Unpaid Hailstorm Claims
A homeowners' association in Colorado has filed a lawsuit against QBE Insurance Corporation, claiming over $2 million in unpaid benefits resulting from a 2023 hailstorm. The Precedent at Stony Creek Homeowners Association initiated the case in Denver County District Court and it has since moved to the U.S. District Court for the District of Colorado. The HOA accuses QBE of breach of contract and bad faith in handling a significant property damage claim.
The legal documents detail the impact of the severe wind and hailstorm on Littleton, Colorado, on June 22, 2023. The storm, which featured winds up to 60 miles per hour and hailstones two inches in size, reportedly caused a tornado to touch down nearby. It resulted in extensive damage to the HOA community's thirty buildings, affecting roofs, siding, gutters, windows, screens, and garage doors.
Within days, the HOA reported the damage to QBE, which sent an adjuster by mid-July 2023. This adjuster verified significant roof damage. By October 2023, QBE had reportedly agreed to pay over $2.1 million for roof and gutter repairs. However, issues arose regarding QBE's management of additional damage claims.
QBE delayed addressing other property damages, such as siding and window repairs, until May 2024, offering $126,313.19. This offer was significantly below the HOA's contractor estimate of approximately $739,000 for siding and trim alone, with a broader repair estimate of over $1 million by October 2024. QBE reportedly ceased communications until January 2025, resuming only after pressure from the Insurance Commission.
In May 2025, QBE made a further payment of around $494,891, which the HOA argues is insufficient. Allegedly, QBE has not released about $400,000 in recoverable depreciation for roof repairs, resulting in at least $2,265,459.41 in unpaid benefits. The HOA seeks compensatory damages, statutory penalties under Colorado's bad faith laws, and coverage of attorneys' fees and costs. They have requested a jury trial.
As the case is still in its preliminary stages, no judicial decision has been made. It is essential to recognize that the allegations represent one side of the dispute, with QBE yet to file its response in court. This lawsuit highlights ongoing bad faith litigation patterns in Colorado, where hailstorm claims present considerable risks due to potential statutory penalties for insurers.
The case is officially listed as Precedent at Stony Creek Homeowners Association, Inc. v. QBE Insurance Corporation, Case No. 1:26-cv-01154, in the U.S. District Court for the District of Colorado.