Colorado Legislature Proposes New Bill to Reduce Homeowners Insurance Costs Amid Rising Premiums
Colorado lawmakers are revisiting efforts to lower homeowners insurance costs after a previous attempt failed. Over the past five years, the average insurance premium in Colorado has increased by 65%, making it one of the top ten most expensive states for homeowners insurance. This rise is attributed to frequent and severe weather events, such as fires, storms, and hail, exacerbated by climate change. A new bill proposes a half-percent fee on insurance companies' policies to fund grants for hail-resistant roofs, aiming to generate $20 million annually over five years. Democratic Sen. Kyle Mullica, who previously opposed a similar bill, now supports the measure, emphasizing that insurers should not pass the fee onto consumers. The bill excludes incentives for insurers in wildfire-prone areas but includes a study on best practices for wildfire insurance.