Law to Save Coloradans Money on Property Insurance Goes Into Effect

Colorado has enacted HB25-1182, a new law designed to increase transparency in wildfire risk modeling and lower property insurance premiums for homeowners. The legislation requires insurers to provide detailed explanations of risk scores and allows policyholders to appeal classifications based on their mitigation efforts. This move addresses the state's rapidly rising insurance costs, which doubled between 2020 and 2025 due to frequent natural disasters like wildfires and hailstorms.

HB25-1182, scheduled to take effect on July 1, 2026, mandates that property insurers provide written notices to policyholders during the application, renewal, or nonrenewal process. These notices must include plain-language explanations of wildfire risk scores, the range of possible scores, and how specific mitigation actions—such as home hardening or brush clearing—impact those classifications. Sponsored by a bipartisan group including Representatives Brianna Titone and Kyle Brown, and Senators Lisa Cutter and Cleave Simpson, the law aims to ensure that property owners who invest in wildfire mitigation receive the discounts they were previously denied.

A central feature of the legislation is a formal appeals process for policyholders who believe their wildfire risk scores or classifications are inaccurate. Insurers must acknowledge receipt of an appeal within 10 calendar days and provide a final decision within 30 calendar days; if an appeal is denied, the Commissioner of Insurance has the authority to review the insurer’s response and the evidence provided by the homeowner. Furthermore, the law requires insurers to incorporate both parcel-level and community-wide mitigation efforts into their risk models, or otherwise provide discounts to those demonstrating proactive risk reduction.

The legislative push comes as Colorado grapples with some of the highest property insurance rates in the United States, which doubled from 2020 to 2025. Data from the Division of Insurance indicates that hail damage alone accounts for 26% to 54% of annual premiums, with mitigation potentially saving consumers between $82 and $387 per year. In addition to HB25-1182, lawmakers championed SB26-155, a new law creating a grant program to help homeowners harden roofs and mitigate the impact of natural disasters to help stabilize the state's insurance market.