Protecting Homes and Health

August 6, 2025

Climate and Health

Legislation and Policy

Colorado’s Response to Climate Change and Insurance Challenges

As federal priorities related to climate change research, renewable energy projects, and investments in clean energy infrastructure continue to shift, state and local governments can continue advancing progress. Colorado, for instance, has passed timely legislation to address two interrelated and climate change-driven challenges: wildfires and homeowners insurance.

Over the past few decades, wildfires in Colorado have increased in size, frequency, and intensity, posing threats to human health and structures like homes, businesses, and roadways. In response, Colorado has passed a number of laws to advance wildfire mitigation — proactive steps to reduce the risk of wildfire.

While these efforts have moved Colorado in the right direction, insurance has been a hang-up. The Colorado Health Institute (CHI) recently published a series of reports exploring the relationship between wildfire risk, homeowners insurance, and health. In our research, we learned that there was little incentive for homeowners and communities to mitigate and reduce their wildfire risk. This is because they may not see that work translate into cost savings, like lower premiums, or better insurance availability for those who have been dropped from their insurance. As a result, CHI recommended that Colorado create standards for the use of mitigation factors in insurance industry assessments and rating plans — how they evaluate properties and determine rates.

This strategy came to fruition in the 2025 legislative session through HB25-1182 Risk Model Use in Property Insurance Policies. This bill requires certain insurance companies that use select risk management models, such as a wildfire risk or catastrophe model, to:

Consider any mitigation effort when assessing risk.
Make information publicly available on the rewards for policyholders who undertake mitigation efforts.
Provide policyholders with an annual notice of their mitigation discounts and wildfire risk score.

In short, this bill aims to make mitigation efforts translate to cost-savings and better insurance availability for consumers (see Resources for Homeowners).

“We will see consumer savings and better homeowners insurance availability as a result of 1182,” said Insurance Commissioner Michael Conway. “We are already starting to see the impacts of 1182 on the market. Companies are doing a better job already taking mitigation into account.”

Colorado Legislation to Support Wildfire Mitigation

Senate Bill (SB) 21-258 Wildfire Risk Mitigation. The bill expanded the use of wildfire mitigation funding and allowed for additional staffing to support wildfire mitigation efforts.
House Bill (HB) 22-1101 Wildfire Mitigation Incentives for Local Governments. The bill created the Wildfire Mitigation Incentives Local Government Grant Program in the Colorado State Forest Service to provide matching funds to local governments that raise dedicated revenue for forest management or wildfire mitigation efforts.
SB22-007 Increase Wildfire Risk Mitigation Outreach Efforts. The bill directed the Colorado State Forest Service to convene a working group and implement an enhanced wildfire awareness month outreach campaign in 2023 and 2024.
SB23-166 Establishment of a Wildfire Resiliency Code Board. The bill created the Wildfire Resiliency Code Board in the Department of Public Safety to adopt statewide building codes and standards for preventing damages caused by wildland fires in urban areas. Local governments must adopt building codes that meet or exceed the state codes.
HB24-1024 Extend Outreach Campaigns for Wildfire Mitigation. The bill extended the Colorado State Forest Service’s enhanced wildfire awareness outreach campaign through 2027.

Senator Cleave Simpson, one of the bill’s prime sponsors, said he is “hopeful that this legislation will help communities actually do things to lower their risk and rates.”

While there is no silver bullet solution to addressing wildfire risk, this bill is a big step in the right direction toward keeping Colorado homes insurable and more affordable.

During a time when the federal government is disrupting, defunding, and deprioritizing climate action, Colorado and its local communities must continue addressing climate hazards and their impact on health. We’ll have to be more creative and collaborative than ever before in using the resources we have, but Colorado is proving that strong local action can move the needle, even when federal leadership falls short.

Resources for Homeowners

For homeowners wondering how to reduce wildfire risk to their property and understand their insurance, here are resources to get started.

The Live Wildfire Ready website, managed by the Colorado State Forest Service, shows homeowners how to understand their wildfire risk, mitigate their homes, and connect with local resources.
The Division of Insurance has resources to help homeowners understand their insurance needs and ensure they are disaster-ready. These include guidance for creating a home inventory, understanding your policy, and understanding the claims process.
United Policyholders, a nonprofit organization that serves as a trustworthy source of information and consumer advocacy group, also has resources for recovery, preparedness, and more. Resources include the Colorado Home Insurance Check UP: Questions to Ask Your Agent/Broker and Shop Smart Colorado: Tips for Insuring Your Home.
National, state, and local agencies and organizations created the Colorado Property and Insurance Wildfire Preparedness Guide, which has resources for creating defensible space, reducing structural ignitability, and working with insurance companies.