Colorado Lawmakers Reach Consensus on Bill to Regulate Homeowners’ Wildfire Risk and Premiums
Colorado lawmakers have reached a consensus with insurance industry representatives over a bill that seeks to regulate how carriers determine a homeowner’s wildfire risk and the premiums they pay. House Bill 1182 passed the Senate on Friday after being approved in the House last month. The bill is now poised to head to Gov. Jared Polis’ desk.
Gov. Jared Polis has made tackling the rising cost of homeowners insurance a top legislative priority, calling for lawmakers to pass reform measures in his State of the State address. In an interview following a meeting with insurance industry leaders in December, Polis emphasized the need for insurers to reward homeowners who take mitigation seriously.
“Of course, we know that there are solutions, like hail-resistant roofs, like community-level and home-level risk mitigation,” Polis said. “What’s frustrating is spending money here and there while homeowners insurance continues to go up. That has to end.”
The state has seen a dramatic increase in insurance costs in recent years as weather events, intensified by climate change, drive up homeowners’ risk. According to a study by the state-run Division of Insurance, premiums for single-family homes jumped 52% between January 2019 and October 2022. In the High Country, where wildfire is an even more present threat, some homeowners have reported premium increases upwards of 1,000%.
At the heart of House Bill 1182 is an effort to give homeowners more credit for steps they take to protect their homes and reduce their risk. The bill requires insurance carriers to consider mitigation efforts when assessing a homeowner’s wildfire risk. Companies must also share information on their risk models with the state’s insurance division, explain to homeowners how their risk is calculated and what they can do to lower it, and allow homeowners to appeal their risk score.
Rep. Brianna Titione, D-Arvada, a bill sponsor, said the measure “is about promoting transparency and accountability in the wildfire risk scoring and the models and empowering Coloradans to make informed decisions about mitigation.”
The bill has received broad bipartisan appeal, passing the House by a vote of 45-18 and the Senate by 33-1. House lawmakers must still approve changes made in the Senate before the bill can go to Polis’ desk.
