Insurance Rates

Colorado health insurance prices poised for another big jump in 2027. State and federal subsidies, though, will blunt the price increases for people with lower incomes. Prices for coverage next year will increase by an average of 10% across the state and by even more for those who live in the mountains or on the Western Slope.

Blame wildfires and hail — made more destructive by climate change — for the deteriorating insurance situation in the West. Add in hurricanes and other disasters elsewhere, and it’s a nationwide trend — one that a new report from the advocacy group the Insurance Fairness Project says is threatening home sales.

Alongside homeowners insurance premiums, costs for multi-family rental property policies and other insurance required in the business are also on the rise. That has big implications for tenants – especially those in subsidized or affordable housing.

Among Mountain West states rates vary drastically

Nationwide, the percentage of household income spent on homeowners insurance premiums nearly doubled between the early 2000s and 2022 – jumping from 1.2% to 2.1%. That’s according to recent analysis by the Insurance Research Council, an industry-supported nonprofit. Their projections suggest it could already be at 2.4 percent.

Homeowners insurance is getting more expensive and harder to keep. Lawmakers in our region introduced more than a dozen policy proposals in response this year.

While California has a uniquely unstable insurance market, many of the issues there are increasingly being seen across the West. The state’s previous insurance commissioner says there are things other states can do to stave off more serious problems.

Colorado Gov. Jared Polis said he supports measures to make the industry more transparent about how it assesses homeowners’ risk amid increasingly extreme weather events.

Hail damage, wildfires, and weather are only partly to blame, says an industry trade group. There’s also “social inflation.”

Homeowners in Colorado have been watching their insurance costs climb in recent years. You might chalk that up to damaging wildfires and hailstorms that are so common here. But new technology may be the bigger culprit. On today's In The NoCo, we explore the real reason your homeowner’s insurance may be going up soon.