Colorado state lawmakers have rejected a groundbreaking bill aimed at reducing home insurance premiums in the state. House Bill 1302, sponsored by Governor Jared Polis and top Democrats, proposed a 1% fee on homeowners insurance policies to fund initiatives to mitigate wildfire and hail damage risks. The bill was rejected by the Senate Finance Committee in a 2-6 vote, with three Democrats joining three Republicans in opposition.
The proposed fee was expected to generate hundreds of millions of dollars, which would have been split between a grant program to help homeowners hail-proof their roofs and a state-backed reinsurance program to limit insurers’ wildfire loss risk. Proponents argued that the benefits outweighed the costs, but opponents, including state Sen. Kyle Mullica, expressed concerns about imposing new fees on Coloradans already struggling with the high cost of living.
“I’ve heard loud and clear from people that they don’t want more fees,” Mullica said.
Supporters, including state Sen. Judy Amabile, countered that the measure would have addressed the rising costs driven by increased wildfire and hail risks linked to climate change. The bill was part of Polis’s wildfire policy initiative, aiming to reduce risk through reinsurance and potentially lower insurance costs for homeowners.
“I think it can be a win-win for everybody,” Polis said earlier this year. “By reducing risk through reinsurance… we feel this can help put downward pressure” on the home insurance market.
The governor’s office criticized the Democrats who joined Republicans in opposing the bill, stating that it was “disappointing to see Democrats join with Republicans not take action to help Coloradans facing out-of-control home insurance costs.” The legislature has faced criticism for bucking the governor’s policy goals this session, including the failure of other key bills.
This rejection highlights the ongoing struggle to address rising home insurance costs in Colorado, driven by increasing wildfire and hail risks. The issue remains a pressing concern for homeowners in the state.
