Joint Release: Lawmakers Unveil Legislation To Make Property Insurance More Affordable

The following information was released by the Colorado Senate Democrats:

Written By Senate Democrats

DENVER, CO Today Senator Kyle Mullica, D-Thornton, Speaker Julie McCluskie, D-Dillon, and Representative Kyle Brown, D-Louisville, highlighted new legislation to stabilize Colorado's homeowners insurance market and make property insurance more affordable through the creation of a grant program to fortify roofs against costly wind and hail damage.

"This bill is about saving Coloradans money and preventing costly hail and wind damage that raises prices for everyone," said Mullica. "Homeowners insurance premiums have skyrocketed in recent years, squeezing household budgets and costing families thousands each year. This bill is a commonsense approach to reduce costs and make Colorado homes more resilient and disaster-ready for years to come."

"We're taking action to lower property insurance premiums and make Colorado more affordable," said McCluskie. "As climate change intensifies, extreme weather events will make it harder and harder for homeowners to find and afford property insurance coverage. The legislation we're unveiling today would help homeowners protect their properties from hail damage to lower premiums for everyone, stabilize Colorado's property insurance market and reduce housing costs for Coloradans. This bill will lower rates across the state, even in High Country communities that do not typically experience hailstorms, to save Coloradans money."

"Hail risk makes up over half of the cost of homeowner premiums in Colorado, which is why we're introducing legislation to increase fortified roof installations to reduce property damage and lower premiums," said Brown. "Colorado is one of the most expensive states in the country for home insurance, with premium rates increasing 33 percent last year. This effort will help protect Colorado communities from large-scale natural disasters and lower property insurance costs for homeowners."

"Homeowners have been struggling across Colorado with high homeowners insurance rates over the past several years," said Colorado Insurance Commissioner Michael Conway. "We know that hail in particular is a huge contributor to rising premiums. This targeted approach of establishing a grant program for fortifying roofs against hail will help mitigate against increasing extreme weather events in our changing climate. This strategy has a proven track record in other states, and it's time we bring that success to Colorado. I want to thank Senator Mullica and his team for all of the hard work that was put into this bill, and I urge the Colorado General Assembly to support it."

Colorado homeowners insurance rates are some of the highest in the nation and have doubled from 2020 to 2025. The Division of Insurance recently found that hail damage accounts for an average of 26 percent to 54 percent of an annual homeowners insurance premium and that hail mitigation has the potential to save consumers an average of $82 to $387 per year.

The forthcoming legislation would create the Strengthen Colorado Homes Enterprise in the Division of Insurance to implement a grant program to help homeowners fortify their roofs against wind and hailstorms. The Enterprise would collect a fee from insurers that offer multiperil homeowners insurance policies and use the revenue to provide grants to homeowners to retrofit residential properties with resilient roof systems. The Enterprise would be governed by a seven member board that includes the Colorado Insurance Commissioner, experts in home hardening, and members to represent interests of insurers, consumers, and counties.

Beginning in 2027, the insurer fee imposed and collected by the Enterprise would be an amount equal to 0.5 percent of the total premium collected by an insurer on multiperil homeowners insurance policies in the preceding calendar year. The insurer may not surcharge the fee amount to policyholders. Under the bill, an insurer offering multiperil homeowners insurance in the state will be required to demonstrate in their rate filings that savings from the installation of resilient roof systems are passed through to homeowners through discounts or reduced premiums on their insurance policies.

Additionally, the bill would require the Enterprise and the Division of Insurance to conduct a study to analyze insurance risk in high-risk wildfire areas of the state. The study would include an analysis of market competition in high-risk wildfire areas, the impact of a high-risk program on potential losses, and the availability of homeowners insurance in those areas.

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