Short answer: Colorado homeowners insurance turns on two risks: hail, which often carries a percentage wind and hail deductible, and wildfire, where insurers that use risk models must now share your wildfire score and consider mitigation. If you get three declinations from standard insurers, the Colorado FAIR Plan, created by HB23-1288, offers limited actual cash value coverage up to $750,000. Insurers must give 60 days' notice of non-renewal and decide and pay claims within 60 days of a valid, complete claim.
This guide is general information for Colorado homeowners. It isn't legal advice. Your policy wording controls.
Step 1: Hail, roofs and contractors
Hail damage to roofs, siding and windows is generally covered, minus your deductible, which may be a percentage of your dwelling limit. Colorado law also protects homeowners hiring roofers for insurance-paid work, including a written contract requirement and a ban on contractors waiving your deductible. Read Colorado hail damage insurance claims.
Step 2: Wildfire scores and mitigation
Under HB25-1182, admitted insurers and the Colorado FAIR Plan that use wildfire risk models must consider verified property and community mitigation or offer mitigation discounts, and must give you your wildfire risk score with renewal or non-renewal notices. Read Colorado wildfire risk score and mitigation rights.
Step 3: The Colorado FAIR Plan
The Colorado Division of Insurance explains that the FAIR Plan provides property coverage when traditional coverage is unavailable; HB23-1288 created it and was signed May 12, 2023. A state advisory from the Division of Real Estate summarizes the rules:
- Eligibility: three declinations from standard insurers, and a property considered uninsurable because of high-risk factors such as wildfire exposure, location, claim history or age.
- Limit: homeowners coverage up to $750,000 for property and contents combined, at actual cash value, not replacement cost.
- Perils: fire or lightning, windstorm or hail, explosion, riot, aircraft, vehicles, smoke, volcanic eruption and vandalism.
- Properties are inspected and can be denied if they don't meet underwriting standards. The advisory calls the FAIR Plan a last resort, not a long-term solution.
Step 4: Non-renewal notice
Under C.R.S. §10-4-110.7, insurers must give 60 days' notice of non-renewal (10 days for non-payment). Details: Colorado homeowners non-renewal rules.
Step 5: Claims
Colorado insurers must accept or deny and pay within 60 days after a valid and complete claim. More: Colorado insurance claim deadlines. Flood isn't covered by homeowners insurance; see FloodSmart.
See our tables: non-renewal notice rules by state, insurance claim deadlines by state and home insurance claim and lawsuit deadlines by state.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Colorado.
Frequently asked questions
Who qualifies for the Colorado FAIR Plan?
Owners with three declinations from standard insurers whose property is considered uninsurable due to high-risk factors such as wildfire exposure, according to a Colorado state advisory.
How much does the Colorado FAIR Plan cover?
Homeowners coverage up to $750,000 for property and contents combined, at actual cash value.
Will my Colorado insurer tell me my wildfire risk score?
Under HB25-1182, insurers that use wildfire risk models must provide your score with renewal or non-renewal notices.
How much notice before a Colorado homeowners non-renewal?
60 days, or 10 days for non-payment, under C.R.S. §10-4-110.7.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.