A Colorado Division of Insurance report released this month shows home insurance carriers target specific high-risk areas when pricing for wildfire dangers in Colorado, and those higher wildfire premiums are increasing Routt County home insurance rates.
In Routt County, wildfire represents 21.9% of homeowner insurance premium costs, according to the report. In a sampling of 11 both high-risk and low-risk Colorado counties with insurance rates averaged across 20 insurance carriers, La Plata County, home to Durango, also stood out in wildfire risk cost percentages, reaching 24.6%.
Despite the fact that hail storms are not as prevalent in Routt County as in other parts of Colorado, the report showed insurance carriers are distributing hail damage costs across the state. The new report names hail as the No. 1 cost driver of insurance in Colorado, and in Routt County the average hail portion of premiums reached 30.6%.
“Based on the statewide average hail premium data collected by the division, insurers are spreading the cost of hail risk across the state,” according to the report. “Conversely, the wildfire premium by county shows that carriers are targeting high-risk areas when pricing for wildfire risk.”
“HB25-1182 takes a few key steps toward increasing transparency between the underwriter and the homeowner, which is a good thing. The more information homeowners have, the better. A connection between premiums and mitigation efforts has been the missing link. I have some concern about how the industry will navigate these new requirements, so, at the very least, I’d encourage people to review their insurance policies or renewals and compare the wildfire coverage to previous years. Then, I’d encourage everyone to take an honest look at their Home Ignition Zones and pursue opportunities to reduce vulnerability. The 2026 fire season has the potential to get an early start if we don’t see some changes in our snowpack.”
Routt County Wildfire Mitigation Council Executive Director Josh Hankes
According to the Rocky Mountain Insurance Information Association, Colorado’s damaging hail season is considered from mid-April to mid-September, and the Front Range is located in the heart of “Hail Alley,” which receives the highest frequency of large hail in North America.
The state insurance division requested data from 20 homeowners’ insurance carriers that represent 80% of the market in an effort to better understand the breakdown of insurance rates and discounts available for hail and wildfire mitigation efforts, explained Genna Morton, Division of Insurance communications director.
Morton said the good news on the horizon for proactive homeowners is that Colorado House Bill 25-1182 will take effect in July, requiring that a property insurer use a wildfire risk or catastrophe model or a scoring method to assign risk.
That means Routt County home insurance policy holders who perform wildfire or hail mitigation measures to protect their property from risks could receive discounts on their insurance rates.
According to HB25-1182, “the act requires an insurer to post on its website information regarding premium savings that are available to policyholders who undertake property-specific mitigation actions or provide evidence of community-level mitigation actions and the process for appealing a wildfire risk score.”
Morton said the law passed in May 2025 ensures “risk scores reflect actual resilience,” so “we’ll soon see tangible insurance benefits tied to mitigation efforts.”
Morton said the homeowners’ insurance market “continues to be competitive, but we have substantial challenges with affordability around the state.”
The report also analyzed what homeowners’ insurance premium savings could be realized if consumers mitigate their homes for hail or wildfire risks.
Across the state, the potential for discounts to have a meaningful impact on premiums is much greater for hail mitigation, such as through using fortified roofs. According to the analysis in 11 counties, hail mitigation has the potential to save consumers an average of $82 to $387 per year in insurance costs. In Routt County, the potential annual savings for hail actions could be $243 and $20 for wildfire work.
“We know that homeowners’ insurance simply costs too much, and saving home homeowners money on insurance must be a part of the overall solution to lower the cost of housing,” Gov. Jared Polis noted in a Feb. 11 media release. “This data clearly outlines the problem, and now we must take innovative actions to lower insurance premiums, save people money and increase home resilience and safety.”
“Even Coloradans who don’t live in hail-prone areas, such as in mountain communities, are paying for hail damage through their premiums,” Colorado Insurance Commissioner Michael Conway said in the media release. “We can and should help consumers in high-risk areas fortify their roofs because that will help lower everyone’s premiums. And we have to find innovative solutions to help address affordability in our high wildfire areas of the state.”
Conway said his state agency is working with the Colorado General Assembly again this year on legislation to create a grant program for fortifying roofs as well as a reinsurance program for wildfires. Conway presented to the state legislative Wildfire Matters Interim Committee in June 2025, noting that Colorado homeowners’ insurance rates are 57% higher than national averages and that non-renewals of policies are on the rise.
Morton pointed to a study released in March 2023 conducted by consultants for the state agency to assess the stability, availability and affordability of homeowner insurance in Colorado that show premiums increased significantly. Between January 2019 and October 2022, the average homeowner premium increased 51.7%, or 11.5% annually.
“With pressure from wildfire losses, inflation, a hardening reinsurance market and historically unprofitable results in Colorado, insurers are likely to continue to seek premium increases,” according to the study. “The fact that most carriers have been shrinking their exposures in the state in 2022 — some very materially — suggests some turmoil for policyholders and instability in the market. Some carriers report non-renewal actions and new business restrictions based on wildfire risk.”
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.