Rising Home Insurance Costs in Colorado: What Homeowners Need to Know
As your trusted real estate advisor, I always strive to keep you informed about the trends and changes that could impact your homeownership journey. One development that's been grabbing headlines lately? A steep rise in homeowners insurance premiums across Colorado — and it's something we all need to pay attention to.
📈 What's Happening with Insurance Rates?
Recent data shows that homeowners insurance rates in Colorado have jumped by nearly 52% between January 2019 and October 2022. To put that in perspective, Colorado's rates are now a staggering 87% higher than the national average.
So, what's behind this surge? Two major culprits:
🔥 Wildfire risks
🌨️ Severe hailstorms
These natural events are becoming more frequent and intense, prompting insurance companies to raise premiums to offset their growing risks.
🏛️ What’s Being Done About It?
The good news is that lawmakers are stepping in with proposed legislation to help stabilize the market.
🔹 House Bill 1302
This bill proposes a 1% fee on all homeowners insurance policies. The funds raised would go toward wildfire mitigation efforts and better protection from hail damage — hopefully reducing risk over time and stabilizing costs.
🔹 FAIR Plan: A “Last Resort” Option
Colorado has also introduced a FAIR Plan, which offers insurance coverage to homeowners who have been denied by traditional carriers due to their high-risk location. While it’s not ideal for everyone, it can be a lifeline for those struggling to find coverage.
🧭 What You Should Do Next
If you currently own a home in Colorado — or are thinking about buying — here’s what I recommend:
✅ Review Your Current Policy
Make sure your coverage reflects the real risks in your area, especially when it comes to wildfire and hail damage.
✅ Stay Informed
Keep an eye on House Bill 1302 and any changes to insurance regulations in the state.
✅ Lean on the Experts
Work with a knowledgeable insurance agent, and don’t hesitate to reach out to your real estate advisor (that’s me!) to help guide you through the impact these changes may have on your buying or selling decisions.
🏡 Whether you're a first-time buyer, a seasoned homeowner, or just keeping an eye on the market, understanding how insurance trends affect you is key to protecting your investment.
For more details on this story, check out the full article in Sky-Hi News — and as always, feel free to reach out with any questions. I’m here to help you navigate Colorado’s ever-changing real estate landscape with confidence.