Jared Polis, Governor of Colorado, said that homeowners’ insurance costs are too high in the state and called for innovative actions to lower premiums as part of addressing housing affordability.
Polis made these remarks after releasing new data from the Colorado Division of Insurance showing that hail is a major driver of homeowners insurance costs. According to an analysis of 20 insurers covering 80% of the market, hail accounted for between 26% and 54% of premiums by county, even in areas with little hail. Polis said lowering these costs is key for housing affordability and called for approaches to reduce premiums while keeping homes safe and resilient.
“We know that homeowners’ insurance simply costs too much. Saving Coloradans money on insurance must be a part of the overall solution to lower the cost of housing. This data clearly outlines the problem. Now we must take innovative actions to lower insurance premiums, save people money, and increase home resilience and safetyNow we must take innovative actions to lower insurance premiums, save people money, and increase home resilience and safety,” Polis said.
Colorado has been labeled a “lawsuit inferno” by the American Tort Reform Association after the 2025 legislative session, as litigation risks have climbed sharply. Residents face an average annual tort tax of $1,982 due to legal claims that push up insurance premiums and make homeownership more expensive. These pressures affect families already struggling with housing costs.
Construction defect lawsuits in Colorado have also increased insurance costs for builders and developers, which raises home prices and slows new housing supply. Frivolous claims have tightened insurance markets, leading to higher premiums passed on to buyers. Targeted reforms could help reduce these burdens.
Recent analyses show Colorado homeowners’ insurance premiums climbing significantly, driven by litigation, large payouts, and weather events. Rising legal risks have made coverage more expensive and harder to find in some areas. Addressing lawsuit-related costs is seen as central to protecting family budgets and keeping housing affordable.
