A major priority of the Colorado Chamber this session is aimed at addressing affordability and cost of living challenges that place significant strain on the state’s economy and workforce. A key component of that initiative is Senate Bill 49, a piece of bipartisan legislation that was introduced this week that would expand incentives to protect homes against natural disasters and lower homeowners’ insurance premium rates.
Colorado faces growing risks from extreme hail, high winds and wildfires, all of which contribute to rising insurance costs. Colorado is currently the fourth most expensive state in the nation for homeowners’ insurance due to increasing regulatory requirements and more frequent and costly natural disasters. An analysis last year found that homeowners insurance premiums rose 30 percent statewide from 2019 through 2023, with Colorado’s largest cities seeing premiums increase an additional 16 percent on average in 2024.
These rising insurance costs are becoming a growing burden on Colorado families, driving up housing costs and creating workforce challenges for employers. As affordability declines, businesses face increasing difficulty attracting and retaining talent. If left unaddressed, escalating homeowners’ insurance rates will continue to strain Colorado’s cost of living and limit future economic growth.
High homeowners’ insurance costs are a key contributor to Colorado’s broader affordability challenges. According to CNBC, Colorado ranks 47th in the nation for cost of living, making it one of the most expensive states to live in. This is a critical business issue with a direct impact on Colorado’s workforce and the state’s economic competitiveness.
SB 49 aims to address these challenges by creating two new tools to help homeowners reduce damage and improve resiliency. The first piece of the bill expands access to the state Natural Disaster Mitigation Enterprise. Currently, only local governments are eligible to receive funding through the program. SB 49 would allow individual homeowners and homeowners’ associations to access these resources directly, helping fund risk reduction measures that support long term damage mitigation goals, generating cost reduction in insurance policies.
The bill also establishes a new tax-exempt savings account program that Coloradans can use to pay homeowners’ insurance deductibles, install impact resistant roofing, perform wildfire mitigation projects and invest in other damage prevention measures, giving homeowners more flexibility to prepare for and recover from disasters.
SB 49 is modeled after similar grant and tax incentive programs in other states that experience severe weather events, including Alabama, Mississippi and South Carolina. These programs have made it easier for homeowners to strengthen their homes while accessing insurance discounts and cost reductions.
The Colorado Chamber is prioritizing residential resiliency across the state as a practical, long-term strategy to reduce homeowners’ insurance rates and minimize disaster related losses. Incentivizing hail and wildfire resiliency and prevention measures will reduce property loss, lower costs for homeowners, cut down on waste and help reduce insurance rates for Coloradans.
View the Chamber’s recent press release on the bill here.