Latest news with #HouseBill1182
Yahoo
24-05-2025
- Business
- Yahoo
New report reveals why home insurance rates are skyrocketing — here's what you need to know
With the recent increase in wildfires and other extreme weather events, many homeowners are finding that their insurance companies are raising rates. Colorado has the fourth-most-expensive insurance rates in the United States, and with more increases on the way, homeowners are left scrambling. Due to increasing extreme weather events, particularly wildfires and hail in Colorado, home insurance premiums have steadily increased in recent years. In the Centennial State, insurance rates have risen 76.6% in just the last six years. According to The Denver Post, an Insurify report estimated Colorado homeowners will see an 11% increase in premiums in 2025, which could increase the average premium cost to over $6,000. Considering that approximately 300,000 homes in the state are at risk from wildfires, it's not surprising that insurance companies find that insuring these homes is riskier. However, the increased rates are making it more challenging for homeowners in Colorado to afford home insurance. Already, about 10% of Colorado homes are uninsured despite the likelihood of damage from wildfires and hail. Higher home insurance premiums will leave more homeowners having to choose whether paying the premium is more affordable than trying to repair damage caused by extreme weather events themselves, which could lead to an increase in uninsured homeowners. Higher premiums could also lead to fewer homeowners, as some may find that weather risks make renting preferable to purchasing a house. Furthermore, in some regions, insurance companies are pulling out entirely, leaving people without coverage and at risk of financial burden. As more insurance companies become averse to insuring homes in risky areas, more people may begin migrating to states with fewer extreme weather events or cheaper premiums, which could increase home and insurance rates in those states. If we continue to rely on dirty energy, supercharged extreme weather events — such as wildfires — would likely increase even more as heat-trapping gases continue to accumulate in our atmosphere, worsening the home insurance situation and causing further damage to our communities. This is just one reason why many governments and companies are adopting clean-energy solutions. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. Colorado is trying to lower the cost of insurance via a 1% policy fee. This fee would fund programs in the state to address risks and damages caused by extreme weather, hopefully keeping insurers from abandoning the state. Though this fee would cause a slight increase in rates, it would be far less than what premiums are now. The Colorado legislature is also working to pass two bills related to home insurance. House Bill 1182 would rein in the use of risk assessment models by insurance companies, while House Bill 1302 would fund reinsurance and grant programs related to keeping homes safe from wildfires and hail. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
09-03-2025
- Business
- Yahoo
Lawmakers debate controversial bill that would force insurers to fundamentally change their business practices: 'We shouldn't kick the whole thing down the road'
Colorado could adopt legislation to improve insurance protections for residents impacted by increased costs and nonrenewal notices — oftentimes with limited evidence from insurers. As detailed by The Colorado Sun, the bill's sponsors introduced House Bill 1182 in February. Aimed at increasing transparency regarding risk assessment and the setting of premiums, the legislation would require insurance companies to provide a detailed breakdown of their wildfire risk models and scoring methods to the state and general public. Customers would receive an assessment 60 days prior to renewal or 90 days before nonrenewal. If they believe an insurance company ruled unfairly — for instance, one homeowner was dropped after their insurer used a satellite image to falsely conclude their property was in the woods — they will have the opportunity to appeal. In Colorado, property insurance skyrocketed by an average of 58% from 2018 to 2023, according to the Rocky Mountain Insurance Information Association. While factors such as inflation contributed to this increase, so did extreme weather events like wildfires, which are growing more frequent and severe as human activities drive global temperatures higher. In the Centennial State, more than 3 million people live in areas at risk of wildfires, according to the Colorado State Forest Service. While companies like Colorado Earth are improving climate resilience by constructing homes with fire-resistant materials, the state is nonetheless mired in a nationwide insurance crisis. All over the U.S., homeowners have been left without coverage or priced out of areas altogether. In 2023, Colorado introduced a "quasi-governmental insurer" to support homeowners who couldn't find an insurer in the private market, per the Sun. However, policymakers hope HB1182 will reduce the need for this last-resort coverage, as homeowners would have the chance to prove to insurers that they've taken action to mitigate their wildfire risk, such as clearing vegetation and building with fire-resistant materials. Insurers would also have to take state-run efforts to combat wildfires under consideration. The House Business Affairs and Labor Committee has yet to assign a hearing date to HB1182. One hurdle to overcome is how the bill would protect proprietary technology from third-party companies working with private insurers. Should the government be able to control how we heat our homes? Definitely Only if it saves money I'm not sure No way Click your choice to see results and speak your mind. Arvada Rep. Brianna Titone, one of the bill's sponsors, indicated to the Sun that she would be open to collaborating with companies to implement a mindful rollout. "Maybe there's some things that you need to push off a little bit later, but we shouldn't kick the whole thing down the road just because there's a couple technological things that we need to address," Titone said. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
