If you have recently had trouble getting homeowners insurance in Colorado, you are not alone. Many homeowners are seeing higher premiums, stricter underwriting, non-renewal notices or fewer available carrier options. This has become especially common in areas where wildfire risk, hail exposure, roof condition or prior claims make a property more difficult to insure.
For many Colorado homeowners, one of the most frustrating parts of the process has been the lack of clear explanation. A carrier may decline a home, increase the premium or non-renew a policy, but the homeowner may not fully understand what risk score was used, what factors affected the decision or whether mitigation work was properly considered.
That is the purpose of Colorado’s new wildfire insurance transparency law, HB25-1182. The law went into effect on July 1, 2026 and gives Colorado homeowners more visibility into how wildfire risk models, catastrophe models and scoring methods are used in property insurance decisions. It does not guarantee approval or lower premiums, but it does give homeowners more information, more structure and a clearer path to challenge inaccurate wildfire risk information.
What Changed for Colorado Homeowners on July 1, 2026?
Starting July 1, 2026, Colorado property insurers that use wildfire risk models, catastrophe models or wildfire scoring methods must provide more information to homeowners and applicants. These models can affect whether a home is approved, how much the policy costs, whether a surcharge applies or whether a policy is renewed.
Under the new law, insurers must provide written notice that includes the wildfire risk score, wildfire risk classification and any applicable mitigation discounts being used. This notice is intended to help homeowners better understand how their property is being evaluated and what steps may help improve the risk profile.
This is an important change because many homeowners have invested time and money into mitigation work without knowing whether that work was actually being recognized by insurance carriers. HB25-1182 creates more transparency around that process.
Homeowners Can Appeal a Wildfire Risk Score or Classification
One of the most important parts of the law is the right to appeal. If a homeowner believes a wildfire risk score, wildfire risk classification or mitigation discount is inaccurate, they can appeal directly to the insurance company.
The appeal process also has timing requirements. The insurer must acknowledge receipt of the appeal within 10 calendar days and provide a reconsideration and decision within 30 calendar days. If the appeal is denied, the Colorado Commissioner of Insurance may request the appeal and the insurer’s response.
This does not mean every appeal will be successful. However, it gives homeowners a more formal process when the information being used does not appear to reflect the actual condition of the property, completed mitigation work or community-level wildfire protection efforts.
Mitigation Work May Now Carry More Weight
HB25-1182 requires insurers to account for property-specific mitigation and community-level mitigation when those factors are relevant to the wildfire risk model or scoring method being used. If a carrier does not include certain mitigation actions in its model, the law may require the carrier to provide discounts for qualifying mitigation work.
For homeowners, this makes documentation more important than ever. If you complete mitigation work, keep photos, receipts, contractor invoices, inspection reports and any written confirmation from a fire mitigation professional or local fire department. Clear documentation can help an agent or carrier better understand what has been done to reduce the home’s wildfire exposure.
Helpful mitigation steps may include clearing combustible materials near the home, creating defensible space, trimming trees, cleaning gutters, removing pine needles and dry vegetation, relocating firewood away from structures and using more fire-resistant building materials when practical. The Colorado State Forest Service provides helpful guidance on defensible space and the home ignition zone.
This Law Helps With Transparency, but It Does Not Make Every Home Easy to Insure
It is important to understand what HB25-1182 does and does not do. The law gives homeowners more transparency into wildfire risk scoring and mitigation recognition. It does not force insurance companies to insure every property. It also does not eliminate wildfire underwriting concerns or guarantee a lower premium.
Some homes will still be difficult to place, especially if they are located in high-risk wildfire areas, have limited fire access, older roofs, heavy surrounding vegetation or prior property claims. In those situations, standard carriers may still decline coverage or offer limited options.
That is where working with the right insurance agency can make a meaningful difference. A knowledgeable Colorado insurance agent can help review the property details, identify what information carriers need and determine whether the home may fit with a standard carrier, a specialty market or an excess and surplus option.
Wildfire Is a Big Issue, but Hail Still Matters in Colorado
Although HB25-1182 focuses heavily on wildfire risk, Colorado homeowners should not assume wildfire is the only reason insurance costs are rising. Hail remains one of the biggest drivers of homeowners insurance losses across the state, especially along the Front Range.
That means roof age, roof material, roof condition and prior hail claims still matter. A home may have low wildfire exposure but still receive a higher premium because of hail risk or an older roof. In many parts of Colorado, insurance carriers are evaluating both wildfire and hail exposure at the same time.
For the best long-term insurance outcome, homeowners should look at the full property risk profile. Fire mitigation matters, but so does roof maintenance, impact-resistant materials, updated systems and strong overall property upkeep.
What to Do if Your Home Is in a High-Risk Fire Zone
If your home is in a high-risk fire zone, the best thing you can do is be proactive. Do not wait until renewal, closing or a non-renewal deadline to start the insurance process. Higher-risk homes often require more documentation and more underwriting review.
Start by gathering key information about the property. This may include the roof age, roof material, exterior construction, distance to the nearest fire station, driveway access, prior claims history, wildfire mitigation work and any recent improvements. If you already received a wildfire risk notice from your insurance carrier, keep a copy of it.
Bundling home and auto insurance may also help in some situations. It does not guarantee approval, but some carriers are more willing to review a higher-risk home when the overall household profile is strong and multiple policies are being considered together.
Buying a Home in a Wildfire-Prone Area? Get Insurance Guidance Early
If you are purchasing a home in a wildfire-prone area of Colorado, insurance should be reviewed early in the process. Do not assume coverage will be easy to obtain just because the current owner has a policy. Carrier guidelines change, risk models change and a policy that was available years ago may not be available to a new buyer today.
Early estimates can also be unreliable for higher-risk homes. In many cases, underwriters need detailed property information and serious purchase intent before they can provide accurate pricing. If you are under contract or close to making an offer, it is a good time to begin the insurance review process.
Castle Rock Insurance can help connect Colorado homeowners and buyers with agents who understand how to review these more complex property situations. The more information you can provide upfront, the better the quoting process usually goes.
If Your Policy Is Being Non-Renewed or You Are Running Out of Options
If you have received a non-renewal notice, act quickly. Waiting until the final days before expiration can make placement much harder, especially if the home is located in a wildfire-prone area.
Standard insurance carriers may still be available in some cases, particularly if the property has strong mitigation documentation, a newer roof, good access and a favorable overall risk profile. In more difficult cases, excess and surplus insurance may be needed. These policies can be more expensive and may include different terms, but they can provide an important path forward when standard carriers are not willing to insure the home.
How Castle Rock Insurance Can Help
Colorado’s new wildfire insurance law gives homeowners more information, but navigating the insurance market can still be challenging. Every carrier evaluates risk differently and every property has its own underwriting profile.
Castle Rock Insurance helps Colorado homeowners review their options for homeowners insurance, especially when wildfire risk, non-renewal, rising premiums or difficult underwriting are involved. We can help you understand what information may be needed, what factors may affect your quote and which type of insurance market may be appropriate for your situation.
If you are shopping for homeowners insurance, buying a home in a wildfire-prone area or trying to replace a non-renewed policy, contact Castle Rock Insurance to start the quote process. The earlier you reach out and the more complete your information is, the better chance you have of finding a workable coverage option.
