Purplish Colorado’s homeowner’s insurance on shaky ground
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Dec 12, 2025 Colorado homeowners are facing skyrocketing insurance premiums due to worsening climate disasters like hailstorms and wildfires. Insurers are withdrawing from risky areas, leaving many without coverage. The hosts highlight a new state 'fair plan' as a last resort for affected residents. They discuss the impact of hail, which drives 60-70% of premiums, and Governor Polis' proposal for subsidizing hail-resistant roofs. Mitigation efforts are showcased as crucial in saving homes, although challenges in funding and insurer trust remain.
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Insurance Market At A Generational Strain
- Insurers pass higher claim costs to homeowners, making Colorado's rates higher than even California or North Carolina.
- Industry leaders call this the most challenging property market in a generation.
Insurance Deserts Forming
- Companies aren't leaving Colorado wholesale but are withdrawing from specific ZIP codes, creating insurance deserts.
- That retreat concentrates risk and reduces choices, which pushes rates higher in affected pockets.
Fair Plan Is Insurer Of Last Resort
- Use the state's new fair plan only as a last resort because it's more expensive and has payout caps.
- Expect coverage limits (caps at $750,000) and consider supplemental policies if your home's value exceeds that cap.