Colorado insurers would fund grants for stronger homeowner roofs

A state enterprise would collect fees from homeowner insurers and use the money to support roof upgrades and related work. The fee applies to insurers offering multiperil homeowner's insurance in Colorado. The enterprise may use revenue for grants, roof standards and certification, contractor guidance, and other listed services. The fee is paid by insurers and may not be added to policyholders' bills. The board may lower or stop collecting the fee to keep total revenue below $100 million over the enterprise's first five fiscal years. The enterprise must begin imposing and collecting the fee in calendar year 2027.

The enterprise board would award grants to homeowners for eligible roof work. The program covers Colorado homeowners with insured residential property. The board must prioritize an applicant's primary residence and consider factors such as income, weather risk, roof age, and available grant money. Awards depend on money in the fund and board rules; receiving a grant is not guaranteed. Grant recipients must meet applicable permit and building-code rules, use an eligible contractor, and install a roof that meets board standards. Grant money cannot pay for general roof maintenance or repair, but may support work tied to wind or hail damage or steps to prevent it. The act sets no specific date for grant awards to begin.

The board would study insurance risk and market competition in high-risk wildfire areas and submit recommendations. The study concerns insurance risk and homeowner coverage in Colorado's high-risk wildfire areas. The study must examine how a high-risk program could affect insurance losses and coverage, and recommend a program structure that avoids competing with private insurers. The board must involve specified insurance, finance, consumer, and wildfire-mitigation stakeholders and publish the study on the Division of Insurance website. The study section is repealed effective July 1, 2031.

Insurers would file yearly information about policies, resilient roofs, discounts, and wind and hail claims. The requirement applies to insurers offering multiperil homeowner's insurance for property or risks located in Colorado. The filing requirement begins only after the insurance commissioner adopts rules. The filing requirement cannot begin before January 1, 2027, and also depends on the commissioner's adoption of rules.