House Passes Bill to Make Property Insurance More Affordable

Hail damage accounts for up to 54 percent of annual homeowners insurance premiums

DENVER, CO – The House today passed legislation to drive down homeowners insurance premiums and prevent damage from hailstorms, windstorms and other extreme weather events. SB26-155 passed by a vote of 43-22.

“Our legislation would save Coloradans money on their property insurance premiums, protect homes from damage, and make our communities more resilient to extreme weather events,” said Speaker Julie McCluskie, D-Dillon. “Years ago, we created the FAIR Plan to offer property insurance of last resort to Coloradans who live in areas at-risk of wildfires and other natural disasters. As climate change creates increasingly damaging hailstorms, all homeowners pay the price. Our bill would help prevent property damage from hail and wind storms to save all homeowners money on their insurance premiums.”

“This bill could save homeowners hundreds of dollars on their property insurance and prevent costly property damage,” said Rep. Kyle Brown, D-Louisville. “Climate change has escalated the threat of natural disasters, especially storms with baseball-sized hail that can easily break windows and destroy roofs. By making our communities more resilient to wind and hail destruction, we can stabilize Colorado’s homeowners insurance market, lowering property insurance costs for Coloradans.”

SB26-155 would help 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.

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 the interests of insurers, industry experts, 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 add a surcharge 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.

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.