New data released by Governor Polis and the Colorado Division of Insurance (DOI) shows that hail is the primary factor driving up homeowners insurance costs in many counties across Colorado. The DOI, which operates under the Department of Regulatory Agencies (DORA), collected information from 20 insurance carriers representing 80% of the state’s market to better understand how premiums are determined.
The analysis focused on average homeowners insurance premiums for 11 counties, breaking down how much of each premium is due to hail and wildfire risks. The findings also examined available discounts for mitigation efforts related to these hazards.
Governor Polis stated, “We know that homeowners insurance simply costs too much, and saving home homeowners money on insurance must be a part of the overall solution to lower the cost of housing. This data clearly outlines the problem, and now we must take innovative actions to lower insurance premiums, save people money, and increase home resilience and safety.”
According to the data, hail accounts for between 26% and 54% of total homeowner insurance premiums depending on location. Even areas with less frequent hailstorms are affected. For instance, in Summit County—where hail is rare due to its mountainous terrain—hail still makes up an average of 35.6% of premiums while wildfire risk accounts for only 7.9%. In regions along Colorado’s Front Range and Eastern Plains, about half of premium costs come from hail risk; wildfire contributes far less.
Wildfire risk plays a smaller role in most counties’ premium calculations, ranging from just under 1% up to nearly a quarter depending on county-specific conditions. Insurers tend to focus their pricing for wildfire risk in high-risk areas; low-risk places like Denver see only about 1% of their premiums attributed to wildfires.
Colorado Insurance Commissioner Michael Conway commented: “The data is clear: it is hail that is the biggest cost driver of homeowner insurance for families across the state. Even Coloradans who don’t live in hail-prone areas, such as in mountain communities, are paying for hail damage through their premiums. We can’t change the weather in Colorado, but we can and should help consumers in high risk areas fortify their roofs because that will help lower everyone’s premiums. And we have to find innovative solutions to help address affordability in our high wildfire areas of the state. To that end, we’re working with the Colorado General Assembly again this year on legislation to create a grant program for fortifying roofs, as well as a reinsurance program for wildfires.”
A summary document detailing findings by county has been made available online.
