Colorado Lawmakers Revise Home Insurance Stabilization Plan

Colorado lawmakers have abandoned a plan aimed at stabilizing home insurance prices by asking utilities to contribute tens of millions to a reinsurance fund. The House Bill 1302 initially proposed collecting up to $100 million from utilities to purchase reinsurance for home insurers, mitigating their financial risk due to disasters like wildfires. However, after utilities opposed the idea, lawmakers pivoted to impose a 0.5% fee on homeowners' insurance policies that would generate up to $100 million every five years to fund the reinsurance. This fee would be waived for homeowners meeting specific wildfire mitigation standards.