Colorado Lawmakers Push for Affordable Property Insurance
DENVER, CO – The Colorado House has advanced legislation aimed at stabilizing the state’s homeowner insurance market and making property insurance more affordable. The bill, HB25-1302, seeks to address the challenges faced by property owners, particularly on the Western Slope, in finding affordable insurance coverage.
“Finding insurance has been increasingly difficult for Colorado property owners, especially on the Western Slope,” said Speaker Julie McCluskie, D-Dillon. “This legislation would stabilize the insurance market to create more affordable coverage.” The bill aims to tackle the issue of extreme weather events, such as catastrophic wildfires and hail storms, which can cause significant damage and disrupt entire communities.
Rep. Kyle Brown, D-Louisville, emphasized that Colorado is one of the least affordable states for homeowners insurance. “After the Marshall Fire devastated my community, many Coloradans found it difficult to find affordable home insurance,” Brown said. “This legislation will help Colorado homeowners protect their properties and expand insurance coverage options.”
The proposed legislation would transfer a portion of catastrophic wildfire insurance risk to the Wildfire Catastrophe Reinsurance Enterprise, reducing volatility in the insurance market and driving down costs. The enterprise would provide reinsurance payments to eligible insurers to mitigate their risk and losses in the event of a wildfire disaster.
To boost competition in the insurance market, the bill would require insurance companies benefiting from the reinsurance program to provide coverage to homeowners living in high-risk areas. Additionally, it would provide grants to homeowners to help them protect their properties from hail damage by installing fortified roofs.
The legislation builds on Speaker McCluskie’s 2023 law, which created the Fair Access to Insurance Requirements (FAIR) Plan Association. This association ensures that Coloradans with homes and commercial properties in wildfire zones or high-risk areas can access homeowners or commercial property insurance.
By stabilizing the insurance market and promoting competition, the bill aims to make property insurance more affordable for Colorado homeowners.
