.png){kind=logo}
DENVER, CO - The House 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 45-18.
“When Coloradans are properly informed about fire mitigation, they can be more strategic about the steps they take to protect their property from fire damage and correct any errors in their insurers’ records,” said Rep. Brianna Titone, D-Arvada. “Insurance companies are increasingly using wildfire risk scoring and models to determine policy coverage and pricing, but the lack of transparency has left property owners confused about the policy decisions their insurers make. This bill promotes transparency and accountability in property insurance so Coloradans can take effective mitigation efforts that help bring down their insurance costs.”
“Colorado Democrats’ fire mitigation laws help Coloradans protect their properties against wildfires, and this bill helps clarify how property owners can implement these strategies to drive down their insurance costs,” said Rep. Kyle Brown, D-Louisville. “This legislation helps provide transparency behind wildfire risk score calculations so Coloradans can take the action they need to save money and protect their property from wildfire damage.”
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.