Colorado’s Senate Bill 26-155: Strengthening Homeowner Insurance and Safety
On June 4, 2026, Colorado Governor Jared Polis enacted Senate Bill 26-155, known as the "Strengthen Colorado Homes Enterprise" initiative. Supervised by the Colorado Division of Insurance, this legislation aims to enhance homeowner insurance access and support weatherproofing efforts against severe weather threats like hail and windstorms. A notable feature is the annual fee set to begin in 2027, calculated at 0.5% of premiums collected by insurers on multiperil homeowner’s policies issued within Colorado.
The fee, specified under Colorado Revised Statutes § 10-4-2003(4), requires insurers to make payments without passing costs onto policyholders. Capped at $100 million over five years, the fee funds the Strengthen Colorado Homes Enterprise Grant Program, providing homeowners financial resources to modify properties and minimize insurance losses from hail and windstorm risks. At least 85% of fee revenues will aid homeowner retrofitting projects, with remaining funds supporting related initiatives such as training for installing certified weather-resistant roofing systems.
Enhanced Data Reporting and Risk Management
The Bill mandates new filing requirements for insurers, demanding annual submissions to the commissioner by 2027. These submissions must detail active policy counts, adoption rates of resilient roofing systems, discounts offered for such installations, and claims data specific to roof resilience. Additionally, the legislation directs a comprehensive study of insurance risks and market conditions in wildfire-prone areas, aiming to propose a high-risk program aligned with private sector competition by assessing competition levels, risk exposure, and insurance availability.
Distinct from prior state initiatives, Colorado's strategy places financial responsibility on admitted insurers, rather than state funds, leveraging fee proceeds for risk mitigation. This approach benefits insurers through reduced claims and offers policyholders more resilient housing solutions, aligning financial incentives with home safety improvements.