Colorado Lawmakers Renew Push to Lower Homeowners Insurance Rates

New bill aims to provide grants for hail-resistant roofs to reduce insurance costs

Apr. 8, 2026 at 7:24pm

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An abstract illustration composed of overlapping triangles and rectangles in shades of blue, red, and yellow, conceptually representing the economic factors and solutions around homeowners insurance costs in Colorado.A geometric illustration captures the challenge of rising homeowners insurance costs in Colorado and the state's efforts to make homes more resilient through hail-resistant roof grants.Durango Today

After a failed effort last session, Colorado lawmakers are making another attempt at bringing down the cost of homeowners insurance. The average premium in the state has gone up 65% in the last five years, making Colorado one of the top-10 most expensive states for homeowners insurance. The new bill would create an enterprise fund by collecting a 0.5% fee from insurance companies, which would then be used to provide grants to help homeowners purchase hail-resistant roofs.

Why it matters

Climate change and an increase in severe weather events like hail, storms, and wildfires have driven up the costs of homeowners insurance in Colorado. This has made coverage less affordable and reduced competition, leaving some homeowners with limited options. The proposed legislation aims to address this crisis by making homes more resilient and lowering insurance premiums in the long run.

The details

The new bill would require the state to collect a 0.5% fee from insurance companies on homeowners policies, generating an estimated $20 million per year over the first five years. This money would go into an enterprise fund to provide grants for homeowners to purchase hail-resistant roofs, which are more expensive than traditional shingles. The goal is that fewer homeowners will need to file claims after hail storms, reducing costs for insurers and ultimately lowering premiums. Unlike a previous failed effort, this year's bill explicitly prohibits insurers from passing the fee directly to consumers.

  • In the last five years, the average homeowners insurance premium in Colorado has increased by 65%.
  • Since 1980, Colorado has experienced more than 76 weather-related disasters causing over $1 billion in damages, with most occurring in the past decade.

The players

Kyle Mullica

Democratic state senator from Thornton who is sponsoring the new bill after helping defeat a similar proposal last session due to concerns about insurers passing the costs to consumers.

Jared Polis

Colorado governor who has called the state's insurance situation a major crisis that is driving up costs for homeowners and reducing availability of coverage.

Carole Walker

Head of the Rocky Mountain Insurance Association and industry lobbyist who says the industry shares the goal of getting more hail-fortified roofs to reduce risk and lower insurance premiums.

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What they’re saying

“The goal is that we generate $20 million a year over the first five years, $100 million total. That is by statute, that's a maximum that an enterprise can generate, and we believe we're going to maximize that. And so I think there'll be real dollars here.”

— Kyle Mullica, Democratic state senator

“We also have many homeowners who have a lot less choices, even some down to one choice, and to insure with less competition also means higher rates. So it's become a major problem.”

— Jared Polis, Colorado governor

“That is what's going to make a difference. That's the long-term answer to making our homes safer and more insurable.”

— Carole Walker, Head of Rocky Mountain Insurance Association

What’s next

The new bill will soon be considered by Colorado lawmakers, who are hoping to avoid the issues that led to the defeat of a similar proposal last session.

The takeaway

This legislation represents a renewed effort by Colorado to address the growing crisis of skyrocketing homeowners insurance rates driven by climate change and severe weather. By providing grants to make homes more resilient, the state aims to lower insurance costs and ensure greater availability of coverage for residents.