LAW TO SAVE COLORADANS MONEY ON PROPERTY INSURANCE GOES INTO EFFECT

The following information was released by the Colorado Senate Democrats:

Written By Senate Democrats

Denver, CO On July 1, 2026 legislation to save Coloradans money on their property insurance policies will go into effect. HB25-1182 requires insurers to be more transparent regarding their wildfire mitigation risk models and allows property owners to appeal their scores.

"Colorado is grappling with some of the highest property insurance rates in the nation, and to lower costs, property owners can implement home hardening and wildfire mitigation tactics," said Rep. Brianna Titone, D-Arvada. "Coloradans have invested in wildfire mitigation efforts on their property before, only to receive no discounts from their insurance companies. Our law, going into effect next month, requires property insurance transparency and accountability so Coloradans know what insurers expect and can effectively lower their rates."

"I frequently hear from constituents that they are being denied insurance or their premiums have increased dramatically. It has always concerned me that we incentivize and encourage mitigation, but there's no way to tie these efforts directly to insurance," said Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County. "This law addresses that, requiring insurers to consider mitigation efforts, provide transparency to homeowners on the wildfire risk models they use, and give them the opportunity to appeal directly."

"After the Marshall Fire destroyed hundreds of homes in my community, many of my neighbors experienced skyrocketing property insurance costs," said Rep. Kyle Brown, D-Louisville. "We know that home hardening and wildfire mitigation efforts can make our communities more resilient to natural disasters and lower property insurance rates for everyone. However, Coloradans sometimes miss out on lower insurance rates because insurers aren't forthcoming with what goes into a wildfire risk score. This law, going into effect on July 1, requires insurers to provide up-front, transparent wildfire risk score calculations to customers so Coloradans can take action before the next disaster."

HB25-1182, also sponsored by Senate Minority Leader Cleave Simpson, R-Alamosa, requires an insurer to provide a written notice to each policyholder at the time of application, renewal or nonrenewal. The notice must include plain-language explanations of the wildfire risk score or other classifications, a range of possible scores a property could be assigned, and the impact each mitigation action could have on a risk score or classification.

Policyholders and applicants can appeal their wildfire risk model score, wildfire risk classification, or applicable mitigation discount if they believe it is inaccurate and can provide evidence of the mitigation efforts they have taken. To make the appeals process timely, the insurer must notify the policyholder or applicant in writing of the right to appeal and acknowledge receipt of the appeal within 10 calendar days. Insurers will also be required to respond to the appeal with a reconsideration and decision within 30 calendar days. If an appeal is denied, the Commissioner of Insurance can request a copy of the appeal and the insurer's response.

To help lower property insurance costs, the law requires insurers to consider parcel-level and community-wide mitigation efforts in their models to ensure that risk scores reflect the property and the surrounding area. If an insurer doesn't incorporate these actions into their models, they should provide discounts to policyholders who demonstrate property or community-level mitigation actions, such as cleaning up brush near a home.

Colorado homeowners' insurance rates are some of the highest in the nation and have doubled from 2020 to 2025. Natural disasters like wildfires and hailstorms are some of the largest drivers of high insurance costs: 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.

This year, lawmakers championed a new law that will create a grant program to harden roofs and mitigate the impact of natural disasters. SB26-155 will help stabilize Colorado's homeowners' insurance market, mitigate the impacts of natural disasters and save Coloradans money on their property insurance.