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Hail damage accounts for up to 54 percent of annual homeowners insurance premiums
DENVER, CO – The Governor today signed into law legislation to drive down homeowners insurance premiums and prevent damage from hailstorms, windstorms and other extreme weather events.
SB26-155, sponsored by Senators Kyle Mullica, D-Thornton, and Janice Marchman, D-Loveland, Speaker Julie McCluskie, D-Dillon, and Representative Kyle Brown, D-Louisville, will 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.
"This law 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 law is a commonsense approach to reduce costs and make Colorado homes more resilient and disaster-ready for years to come.”
“Our law will save Coloradans money on their property insurance premiums, protect homes from damage, and make our communities more resilient to extreme weather events,” said McCluskie. “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. This law helps prevent property damage from hail and wind storms to save all homeowners money on their insurance premiums.”
“Hardening homes against hail and wind doesn’t just protect the family inside, it lowers costs for every policyholder in the state,” said Marchman. “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 law does that.“
“This law could save homeowners hundreds of dollars on their property insurance and prevent costly property damage,” said Brown. “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 creates 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 will 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 will 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 will 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. 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 law requires 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 will 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.