Colorado Proposes Senate Bill 155 to Address Rising Homeowners’ Insurance Premiums

In response to skyrocketing homeowners' insurance premiums in Colorado, Senator Kyle Mullica has proposed Senate Bill 155, aiming to address the financial burden on residents. The bill seeks to fund a grant encouraging the installation of hail-resistant roofing by levying a fee on property insurers. This represents a turnaround for Mullica, who previously opposed similar measures over consumer cost concerns.

Colorado's insurance premiums have soared, with rates more than doubling since 2020 and witnessing an 18.3% increase in 2025. Industry analyses attribute this to frequent hailstorms and extreme weather events impacting the region. The proposed legislation plans to mitigate these effects by offering financial aid for homeowners upgrading to robust roofing solutions. The legislation aims to establish the Strengthen Colorado Homes Enterprise fund, distributing up to $20 million annually from 2027 to cover the higher costs of hail-resistant roofs as per the standards of the Insurance Institute for Business & Home Safety.

SB 155 proposes funding through a 0.5% fee on multiperil homeowners' insurance policies while preventing insurers from passing this cost to consumers. Instead, insurers must demonstrate savings through reduced premiums or rate discounts. Modeled after Alabama’s successful disaster mitigation program, Colorado's initiative confronts fiscal constraints, needing new funding mechanisms. Industry representatives support the bill conditionally, suggesting amendments to ensure fiscal practicality and consumer affordability. The Senate Finance Committee will soon evaluate this proposal along with related efforts to introduce tax-exempt savings accounts for hail-resistant upgrades, pivotal in addressing escalating insurance costs and housing affordability challenges in the state.