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DENVER, CO - The House today advanced legislation on a preliminary vote that would stabilize Colorado’s homeowner insurance market to create more affordable property insurance options.
“Finding insurance has been increasingly difficult for Colorado property owners, especially on the Western Slope, and this legislation would stabilize the insurance market to create more affordable coverage,” said Speaker Julie McCluskie, D-Dillon. “From catastrophic wildfires to hail storms that cause billions of dollars of damage in minutes, extreme weather events can upend entire communities. This legislation would create more competition in the insurance market to drive down costs and save Coloradans money on their property insurance."
“Colorado is one of the least affordable states for homeowners insurance, which is why we’re bringing this bill to make insurance more accessible and affordable for Colorado homeowners,” said Rep. Kyle Brown, D-Louisville. “After the Marshall Fire devastated my community, many Coloradans found it difficult to find affordable home insurance. Through this legislation, we’re helping Colorado homeowners protect their properties from damage and expanding insurance coverage options that work for hardworking Coloradans.”
HB25-1302 would stabilize the insurance market by transferring a portion of catastrophic wildfire insurance risk to the Wildfire Catastrophe Reinsurance Enterprise, reducing volatility in the insurance market that drives up costs.
The enterprise would also provide reinsurance payments to eligible insurers to mitigate their risk and losses in the event of a wildfire disaster.
Colorado’s insurance market is statewide, however, competition is lagging. To boost competition and drive down costs, this bill would require insurance companies benefiting from the reinsurance program to provide coverage to homeowners living in high-risk areas.
Additionally, the bill would provide grants to homeowners to help them protect their properties from hail damage by installing fortified roofs, which are better able to withstand hailstorms than traditional roofs.
Speaker McCluskie passed a 2023 law creating the Fair Access to Insurance Requirements (FAIR) Plan Association to ensure Coloradans with homes and commercial properties located in wildfire zones or otherwise subject to high-risk factors can receive homeowners or commercial property insurance.