A Rising Concern
Climate change is driving extreme weather events, causing record insurance claims and dramatic rate increases for property owners.
Surge in Natural Disasters
2023 saw record billion-dollar disasters exceeding $200 billion in damages. Colorado’s June 2023 hail outbreak ranks among the costliest state events recorded.
Rising Costs for Insurers
Catastrophic claims force insurers to raise premiums dramatically: • Coastal regions face 2-3x premium increases • Wildfire-prone areas experience nonrenewals or steep hikes • Hail-prone states like Colorado see deductibles shift to 1-5% of Coverage A • Building material inflation compounds rebuilding costs
Impact on Policyholders
Homeowners face difficult choices: • Higher premiums and larger deductibles • Some choose minimal coverage; others go uninsured • Example: One Coloradan saw $440 monthly increase in June 2025
Colorado Specifics
| Issue | Impact |
| Average Annual Hail Losses | $151 million (2nd highest nationally) |
| 10-Year Hail Damage | Over $5 billion |
| Average Premiums | $4,600/year (4th highest state) |
| Rate Increases 2018-2023 | Up 57.9% |
| Hail’s Premium Share | 50-70% of homeowners’ costs |
Insurers’ Response
Companies are adapting through: • AI and advanced modeling for risk forecasting • Building code advocacy and mitigation discounts • Smart home system incentives
Government Action
Colorado’s HB 25-1302 creates: • “Strengthen Homes Enterprise” for hail-resistant roof grants • Wildfire reinsurance enterprise to stabilize rates • Funded via modest policy fees
Looking Ahead
Weather risk and insurance affordability remain linked. Success requires: • Keeping coverage affordable • Encouraging mitigation and risk reduction • Supporting resilient infrastructure • Collaboration between stakeholders.
Property owners must prepare for continued rate pressures while governments and insurers work toward sustainable solutions.
