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DENVER, CO - The House Business Affairs & Labor Committee today passed legislation that would help Coloradans save money on their property insurance policies by requiring transparency in wildfire mitigation risk models and how they impact an individual’s insurance policy. HB25-1182, sponsored by Representatives Brianna Titone and Kyle Brown, passed by a vote of 8-4.
“Wildfires pose a huge threat to the health and safety of Colorado communities,” said Rep. Brianna Titone, D-Arvada. “The legislation I’m sponsoring today requires insurers to provide information to policyholders about their properties’ potential wildfire risks, the science-based models they use to determine these factors, and how this impacts their insurance pricing. This ensures that property owners understand what actions they can take to protect their property in ways that also reduce their insurance costs, saving Coloradans money on property insurance and creating more fire-resilient communities.”
“Property owners and communities who take action against wildfire threats deserve insurance policy transparency and pathways to reduce their insurance costs,” said Rep. Kyle Brown, D-Louisville. “My community was devastated by the Marshall Fire, and many property owners have implemented fire mitigation strategies to protect homes, businesses, and public spaces from future fires. This is a necessary bill that improves access to affordable insurance while providing property owners with a clear appeals process to give Coloradans the proper tools to improve their risk scores directly with insurers to save them money.”
HB25-1182 would require an insurer to provide a written notice to each policyholder at the time of application, renewal, or nonrenewal. The notice would include plain-language explanations of the wildfire risk score or other classifications, a range of possible scores a property could be assigned, and the impact each mitigation action could have on a risk score or classification.
Policyholders and applicants can appeal their wildfire risk model score, wildfire risk classification, or applicable mitigation discount if they believe it is inaccurate and can provide evidence of the mitigation efforts that should be considered. The insurer would notify the policyholder or applicant in writing of the right to appeal and acknowledge receipt of the appeal within 10 calendar days. They would be required to respond to the appeal with a reconsideration and decision within 30 calendar days. If an appeal is denied, the Commissioner can request a copy of the appeal and the insurer’s response.
HB25-1182 would require insurers that consider parcel level and community wide mitigation efforts in their models to ensure that risk scores reflect actual resilience. An insurer that uses these models would be required to ensure property-specific mitigation actions and community-level mitigation activities or designations are accounted for in underwriting and pricing. If an insurer doesn’t incorporate these actions into their models, they shall provide discounts to policyholders who demonstrate these property or community-level mitigation actions.