BILL TO MAKE PROPERTY INSURANCE MORE AFFORDABLE CLEARS SENATE

The following information was released by the Colorado Senate Democrats:

Written By Senate Democrats

SB26-155 would create a grant program to harden roofs and mitigate the impact of natural disasters

The Senate today passed legislation to stabilize Colorado's homeowners insurance market and mitigate the impacts of natural disasters.

SB26-155, sponsored by Senators Kyle Mullica, D-Thornton, and Janice Marchman, D-Loveland, would create a grant program to fortify roofs against costly wind and hail damage in order to make property insurance more affordable.

"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."

"Hardening homes against hail and wind doesn't just protect the family inside, it lowers costs for every policyholder in the state," Marchman said. "Colorado ranks in the top 10 most expensive homeowners insurance markets and hail is driving more than half of premiums in communities like mine. If we are serious about affordability, we have to be serious about reducing the losses that are pushing rates up. This bill does that."

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.

SB26-155 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 submit certain information in an annual filing to the Division of Insurance, including the number of policies in force, number of homes that have installed resilient roofing and the discount applied to their insurance policies, and the wind and hail claims frequency and severity for homes with and without a resilient roof system.

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.

SB26-155 now moves to the House for further consideration.