Lawmakers propose unusual bill to tackle skyrocketing home insurance costs: 'Benefit insurers and homeowners alike'

Homeowners in Colorado may soon catch a big break when it comes to rising insurance costs and even get some help protecting their homes from wildfires and hail.

This spring, state lawmakers introduced House Bill 1302, a plan to make insurance more stable and affordable for everyone. Instead of offering backup insurance like some other states do, Colorado's plan takes a smarter approach: It would lower the risks that drive up premiums in the first place.

In Colorado, the average premium for homeowners increased by almost 52% between January 2019 and October 2022, as shown in a report by the Colorado Division of Insurance. 

Here's how the new plan would work: The bill would create two new programs funded by small fees on insurance policies — about 1% total, though that could vary based on your roof type, according to VailDaily. 

One program would offer grants to homeowners who want to upgrade their roofs, windows, or siding to better handle hailstorms and wildfires. The other would back up insurance companies after major disasters, so they don't have to raise prices as much after a big loss.

The goal? To make home insurance more affordable long term and help more people stay protected in high-risk areas. 

And there's a bonus: stronger, safer homes mean fewer rebuilding projects after natural disasters, which cuts down on pollution and helps us avoid a warmer planet.

This is the same kind of thinking that shaped policies like the Inflation Reduction Act, which offers rebates and funding for practical upgrades — like heat pumps and wildfire defense systems — that help people save money while protecting the planet.

According to ValiDaily, Michael Conway, the state's insurance commissioner, defined this bill in some clear and positive terms: "By transferring a portion of risk to the enterprise, we incentivize insurers to return to high-risk areas, and with competition, premiums will go down. … That will ensure continued availability of coverage in wildfire-prone areas of Colorado and reduce volatility in our homeowners' insurance market." 

"Fewer losses means fewer claims, which benefit insurers and homeowners alike," Rep. Kyle Brown said, according to the VailDaily.

Do you think your city has good air quality? Definitely 🥰 Somewhat 😮‍💨 Depends on the time of year 😷 Not at all 🤢 Click your choice to see results and speak your mind.

However, it is fair to say that not everyone is a fan of this, especially those who work in the insurance industry. 

"Lawmakers and regulators think they're doing the right thing, but it just signals to insurance companies that it's a harder place to do business," Carole Walker, the executive director of the Rocky Mountain Insurance Information Association, said, as reported by Insurance Business. 

Regardless of this minimal backlash, the bill is up for approval, and the process looks promising. If everything goes well, Colorado's approach could be a model for other states looking for smart, practical ways to keep people safer and cool down the planet while they're at it.

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.