Colorado homeowners have new rights over how insurance companies use wildfire risk scores to set prices and decide coverage. The Colorado Division of Insurance announced the protections October 12, 2026, under a state law, HB25-1182, that takes effect in October.

The law is called Risk Model Use in Property Insurance. It applies to admitted insurers and the Colorado FAIR Plan. It does not apply to non-admitted or surplus lines insurers. The Division of Insurance is part of the Department of Regulatory Agencies.

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Under the law, insurers that use wildfire risk scores must consider qualified, science-based mitigation work done by homeowners and communities. Qualified efforts have a verification and certification process. One example is a designation from the Insurance Institute for Business and Home Safety. Policyholders are encouraged to ask their insurers which property-level and community-level risk reduction standards they recognize.

"Coloradans have stepped up to protect our state and their properties from wildfire with mitigation efforts. That work needs to be recognized by insurance companies," said Colorado Insurance Commissioner Michael Conway. "This law requires insurers to recognize the work homeowners complete to protect their homes and communities, and to be open with homeowners about how wildfire mitigation can lead to potential savings."

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The rules apply when an insurer uses a wildfire risk model, catastrophe model or scoring method to price, underwrite, surcharge or non-renew a policy. Insurers that use models or risk scores for premium decisions must build property-specific and community-level mitigation into their pricing. Insurers that do not count mitigation in their models must give a discount to policyholders who show that qualified mitigation work has been done.

Beginning October 1, 2026, insurers and the FAIR Plan will send a written notice. Applicants will get it when they apply. Current policyholders will get it at renewal. The notice cannot be hidden in fine print. It must include:

• The property's specific wildfire risk score or classification.
• A plain-language explanation of how the score was calculated.
• The full range of possible scores and where the property falls.
• A written explanation of the property or area features that affected the score.
• The impact mitigation has on the score.
• A notice of the right to appeal a risk score, risk classification or premium discount.

The law also sets strict timelines. Insurers must give new applicants their score and explanation within 15 days of receiving a completed application. Current policyholders must get theirs with the renewal offer. If a policy is not being renewed, the score must come with the nonrenewal notice.

Homeowners have the right to appeal an inaccurate score. After a formal appeal with evidence of mitigation work is filed, the insurer must confirm it received the appeal within 10 calendar days. The insurer and the FAIR Plan must review the evidence and, if it applies, update the score within 30 days. The company must give a final written decision within 30 calendar days. If the appeal runs past the policy's expiration, coverage must continue for at least 10 calendar days after the homeowner learns the decision. If an insurer denies an appeal, the Division of Insurance can request a copy of the appeal and the insurer's reasoning to check for compliance.

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Insurers that use wildfire risk models must post on their public websites any premium adjustments, incentives or discounts for mitigation work. They must also explain how to appeal a score or discount. Insurers that do not offer discounts must post on their websites that discounts are not available.

Some insurers are already offering these benefits. CSAA General Insurance Company and State Farm are expanding where they will write policies for customers who meet certain requirements, including wildfire mitigation. With CSAA, a homeowner who earns the Insurance Institute for Business and Home Safety Wildfire Prepared Home Enhanced or Essential designation may be eligible for a 15 percent discount on the wildfire portion of the premium if they meet underwriting requirements. CSAA will also guarantee wildfire eligibility for customers who are Wildfire Prepared Home Enhanced, keep a companion auto policy and meet all other eligibility requirements. At State Farm, properties even in high wildfire risk areas may be insured if they meet requirements, including earning the Wildfire Prepared Home designation. Other insurers also offer discounts for mitigation in the areas of Colorado where they write policies.

The Division of Insurance urges homeowners to take these steps starting in October:

Ask for your notice. When applying for or renewing a policy, look for the required Wildfire Risk Notice. If you do not get it, contact your agent or insurer right away.

Check your insurer's website. Look up its mitigation discount information and instructions for appealing your score or discounts.

Shop around. Compare quotes from several insurers and talk with an insurance agent. Consider coverage as well as cost.

Homeowners should file a complaint with the Division of Insurance if their insurer does not send a wildfire risk score notice on time, refuses to review mitigation evidence or denies a discount without a valid written explanation. To file an online complaint, visit doi.colorado.gov.