Colorado Homeowners Face Record Insurance Costs as Governor Polis Launches $800 Savings Plan

Colorado residents have experienced the highest percentage increase in homeowners insurance premiums of any state this decade, with rates doubling since 2018, according to state data. In response, Governor Jared Polis has announced a comprehensive Roadmap to Reduce Homeowners Insurance, aiming to lower the average premium by $800 per household by the finish of next year.

The initiative, developed in partnership with the Colorado Division of Insurance, targets the primary drivers of rising costs: hail and wildfire damage. State officials report that up to 54% of homeowners insurance premiums in Colorado are tied to hail risk and up to 25% to wildfire risk.

Insurance Costs Have Surged Across Colorado

Nationally, homeowners insurance premiums rose an average of 58% between 2018 and 2024. In Colorado, the increase reached 100% over the same period, meaning the average premium has doubled. The Colorado Division of Insurance estimates the current average homeowners insurance premium at $4,200 per year.

This sharp rise has placed growing financial pressure on homeowners across the state, particularly in areas affected by recent disasters such as the Marshall Fire in 2021, which destroyed over 1,000 homes and businesses in Boulder County.

Polis Plan Focuses on Prevention and Transparency

The governor’s roadmap includes multiple strategies to reduce risk and lower costs. Key components include:

• Encouraging the use of hail impact-resistant shingles for modern and replacement roofs
• Promoting home fortification efforts to reduce wildfire risk
• Supporting legislation such as SB-155, which would create a grant program to help homeowners reinforce roofs against hail damage
• Advancing transparency measures under HB-1182, requiring insurers to disclose how wildfire risk scores are calculated and what mitigation discounts are available

“With what is looking like a bad fire season ahead, it is even more important for consumers to understand how insurance companies establish their individual wildfire risk scores and the discounts available to them for mitigating their homes,” said Colorado Insurance Commissioner Michael Conway.

Savings Could Represent 20% Reduction for Average Homeowner

Based on the current average premium of $4,200, an $800 reduction would equate to approximately a 20% decrease in annual insurance costs for Colorado homeowners. The governor stated that achieving this goal would craft communities “safer and more resilient in the face of unpredictable weather conditions and natural disasters.”

The roadmap reflects a broader effort to address affordability challenges in Colorado’s housing market, where rising insurance costs compound pressures from home prices and property taxes.

Legislative Action Underway to Support Risk Reduction

During the 2026 legislative session, lawmakers are considering several bills tied to the governor’s initiative. SB-155, which would fund hail-resistant roofing upgrades, has received support from insurance officials who note that preventative measures can significantly reduce long-term claims costs.

HB-1182, which took effect in July 2025, now requires insurers to provide clearer explanations of how wildfire risk is assessed, enabling homeowners to take informed steps to lower their premiums through mitigation efforts.

As hail and fire seasons approach, state officials continue to urge residents to explore available discounts and invest in protective home improvements that may qualify for insurance savings.

Key Takeaways

• Colorado homeowners insurance premiums have increased by 100% since 2018, the highest rise in the nation.
• The average annual premium in Colorado is now approximately $4,200.
• Governor Jared Polis’s Roadmap to Reduce Homeowners Insurance aims to cut costs by $800 per household on average.
• Hail accounts for up to 54% and wildfire for up to 25% of insurance premiums in the state.
• The plan emphasizes prevention through hail-resistant roofing, wildfire mitigation, and greater insurance transparency.
• Legislative proposals like SB-155 and existing laws such as HB-1182 support the initiative’s goals.

Frequently Asked Questions

Why have homeowners insurance premiums risen so sharply in Colorado?

Premiums have increased due to growing frequency and severity of hailstorms and wildfires, which drive up claims costs. Insurers have adjusted rates to reflect elevated risk, particularly in areas affected by recent disasters like the Marshall Fire.

How much could the average homeowner save under Polis’s plan?

The governor’s roadmap targets an average savings of $800 per home per year, based on a current average premium of $4,200.

What actions can homeowners take to lower their insurance costs?

Homeowners may qualify for discounts by installing hail impact-resistant shingles, fortifying properties against wildfire risk, and taking advantage of mitigation incentives offered by insurers under new transparency rules.

Is the $800 savings goal guaranteed?

The $800 figure is a target based on projected outcomes of the roadmap’s strategies, including legislative action, consumer mitigation efforts, and insurance market responses. Actual savings will depend on implementation and participation rates.