Legislation aimed at lowering homeowners' insurance costs and strengthening homes against increasingly destructive hail and windstorms has cleared the Colorado House of Representatives.
The House approved SB26-155 by a 43-22 vote, advancing a measure supporters say could save homeowners hundreds of dollars annually while reducing costly storm damage. The legislation creates the Strengthen Colorado Homes Enterprise in the Division of Insurance. This is a new statewide program designed to help homeowners install more resilient roofing systems that can withstand severe weather.
"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," House Speaker Julie McCluskie, D-Dillon, said in a release. "As climate change creates increasingly damaging hailstorms, all homeowners pay the price. Our bill would help prevent property damage from hail and wind storms to save all homeowners money on their insurance premiums."
Colorado has experienced dramatic increases in homeowners' insurance rates in recent years. Premiums in the state doubled between 2020 and 2025, with the Division of Insurance reporting that hail damage accounts for as much as 54% of annual homeowners' insurance costs. State officials estimate hail mitigation efforts could save homeowners between $82 and $387 each year.
The bill would fund grants to help homeowners retrofit roofs with impact-resistant materials designed to reduce damage from hail and high winds. The new enterprise would be governed by a seven-member board that includes the Colorado Insurance Commissioner, industry experts, consumer representatives and county officials.
Under the legislation, insurers offering multi-peril homeowners insurance policies would pay an annual fee beginning in 2027 equal to 0.5% of premiums collected in the previous year. The bill specifically prohibits insurers from passing the fee directly on to policyholders through surcharges.
The legislation also requires insurance companies to demonstrate that homeowners receive financial benefits from installing resilient roofs through discounts or reduced premiums.
Rep. Kyle Brown, D-Louisville, said the measure is intended to stabilize Colorado's increasingly volatile insurance market.
"This bill could save homeowners hundreds of dollars on their property insurance and prevent costly property damage," Brown said in a release. "Climate change has escalated the threat of natural disasters, especially storms with baseball-sized hail that can easily break windows and destroy roofs."
According to the bill summary, at least 90% of fee revenue collected by the enterprise must be used directly for grants to homeowners installing resilient roofing systems. The program will prioritize primary residences and consider factors such as household income, roof age, home size, and whether the property is in an area historically vulnerable to severe weather.
In addition to the roofing grant program, SB26-155 requires a statewide study examining insurance risk in wildfire-prone regions. The study will analyze market competition, the availability of insurance coverage in high-risk areas and the potential impacts of future high-risk insurance programs.
Supporters argue the measure represents a proactive approach to reducing long-term insurance costs while helping homeowners better protect their properties against Colorado's increasingly extreme weather patterns.
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