Credit: Jozef Jankola/Adobe Stock
A new bill in the Colorado legislature would impose a fee on insurers to help fund hail mitigation projects.
If the bill passes, home insurance providers would be assessed a 0.5% per-policy fee, which is expected to generate up to $20 million annually. That money would be used to fund grant programs to help homeowners pay for the installation of hail-resistant roofs.
With stronger roofs in place, Colorado homeowners would likely lower their risk and pay reduced home insurance premiums.
Colorado insurance premiums have risen 65% in 5 years. On average, Colorado homeowners pay $3,412 per year for a standard insurance policy for a $300,000 home, according to the Insurance Fairness Project. That's about $1,000 higher than the national average.
Hail is a big reason for the higher cost. A recent study by the Colorado Division of Insurance found that hail accounts for anywhere from 26% to 54% of the cost of a Colorado home insurance premium. By contrast, wildfire accounts for between 0.9% and 24.6%.
A similar bill was introduced last year but imposed the fee on homeowners instead of insurance carriers. It wasn't passed.
Photo credit: Jozef Jankola/Adobe Stock
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