What is Property Insurance?
- Financial protection for homes, condos, and commercial buildings—including their contents—against covered perils such as fire, theft, vandalism, wind, and hail.
- In Colorado, basic policies always list wind & hail as named perils. These are subject to a separate deductible that is usually higher than the standard deductible (often a flat $2,500–$10,000 or 1 %–5 % of Coverage A).
- Flood and earthquake are still purchased under separate policies.
Why is Property Insurance Crucial in Colorado?
| Hailstorms | May 30 2024 Denver-Aurora event caused an estimated $2.3 billion in damage; Colorado ranks #2 nationally for hail losses. |
| Wildfires | Roughly 321,000 homes face moderate-to-extreme wildfire risk; under-insurance was exposed after the 2021 Marshall Fire (74 % of victims). |
| High-Wind / Winter Storms | Roof damage, ice dams, and power-outage losses remain common—especially west of the Continental Divide. |
| Flash Flooding | Rapid snow-melt and convective downpours along the South Platte and Cache la Poudre basins continue to trigger FEMA disaster declarations. |
New legislation in 2025 (HB 1182) will require insurers to publish wildfire-risk scoring models and give premium credits for verified mitigation steps (e.g., fire-resistant roofing and defensible space).
Who Needs Property Insurance?
- Homeowners, condo owners, and renters across the state.
- Landlords with single-family rentals, multifamily, or short-term vacation properties.
- Business owners who depend on buildings, stock, or equipment.
- Greatest need in “Hail Alley” counties (Arapahoe, Jefferson, Denver) and wildland-urban-interface communities such as Evergreen, Aspen, and Pagosa Springs.
Where Are Premiums Highest?
Colorado now has the fourth-highest average homeowners premium in the U.S. at roughly $4,600 per year, up 58 % since 2018. Rates climb further in ZIP codes with both wildfire and hail exposure.
Wind/Hail Deductibles in 2025
Because wind and hail generate the majority of insured losses, most carriers impose:
- Percentage deductibles of 1 %–5 % of Coverage A; or
- Flat deductibles (typically $2,500–$10,000).
Wind and hail are usually bundled together—claiming for either peril triggers the same deductible. Check your declarations page every year so you aren’t surprised after a storm.
Legislative & Market Updates (May 2025)
- HB 1182 – Wildfire Mitigation Disclosure & Discounts (effective Jan 2026).
- HB 25-1302 – Creates the Wildfire Catastrophe Reinsurance Enterprise and a grant fund for wind/hail-resistant roofing, aiming to stabilize premiums in high-risk areas.
- State Insurer of Last Resort – The Division of Insurance will begin offering coverage to homeowners dropped by private insurers in high-risk zones in mid-2025.
When Should You Update Your Coverage?
- Review annually or whenever you remodel, finish a basement, add solar panels, or purchase high-value personal property.
- Re-evaluate after any major hail or wildfire season, when rebuilding costs may shift.
- Update once HB 1182 mitigation credits become available—submit proof of upgrades for discounts.
How Can You Reduce Premiums in 2025?
- Install Class 4 impact-resistant roofing (10 %–20 % credits with many insurers).
- Create a defensible space (30 ft clear zone) and add ember-resistant vents in wildfire-prone areas.
- Add hail-rated skylights and window screens to further reduce claims frequency.
- Bundle home and auto policies to capture multi-policy savings.
- Apply for Strengthen Colorado Homes grants (funded by HB 25-1302) to offset roof retrofit costs.
Key Takeaways
- Wind and hail remain Colorado’s costliest perils; expect higher, percentage-based deductibles grouped as “wind/hail.”
- Premiums continue to rise, but 2025 legislation introduces mitigation credits and state-backed reinsurance aimed at slowing the surge.
- Frequent valuation reviews and proactive risk-reduction steps are your best defense against both under-insurance and sticker shock.
Sources & Outbound Links
- Colorado Division of Insurance
- House Bill 1182 – Wildfire Mitigation Law
- HB 25-1302 – Wildfire Catastrophe Reinsurance Enterprise
- NOAA NCEI – Colorado Billion-Dollar Disasters
- Insurify – States Most Vulnerable to Hail Damage
- National Weather Service – Denver/Boulder Office
- Rocky Mountain Insurance Information Association
- Policygenius – Colorado Wind/Hail Deductibles Guide
- FEMA – National Flood Insurance Program
- Axios – Colorado Home Insurance Market (Jan 2025)