Colorado home insurance nonrenewal: your options

Colorado's notice rules

Colorado gives homeowners more lead time than most of its neighbors. Under C.R.S. 10-4-110.7, as updated by HB23-1174, an insurer that will not renew a homeowners policy must send written notice at least 60 days before the policy expires, and the notice must state the reasons. For nonpayment of premium, the notice period is 10 days.

Read the reasons closely. A Colorado notice should tell you why, not just that the company decided not to renew. If yours does not, ask the insurer in writing and keep a copy.

Hail is the biggest cost in Colorado home insurance

Colorado sits in one of the most active hail areas in the country. Hail is one of the biggest cost drivers in Colorado homeowners insurance. In NOAA's Storm Events Database, El Paso County, home to Colorado Springs, logged the most reports of hail 1 inch or larger in Colorado from 2016 through 2025.

That matters for nonrenewals because roofs are where hail costs land. If your notice cites roof age, roof condition or prior hail claims, the most useful thing you can do is get a written roof inspection from a licensed roofer. If you are replacing the roof, ask insurers in writing whether they give a discount for impact-resistant roofing before you choose a product.

Wildfire scores and your right to appeal

Wildfire is the other major driver, especially in foothill and mountain communities. HB25-1182 deals with how insurers use wildfire risk models. If your insurer used a wildfire score, ask it in writing what the score is, how it was set, and how you can challenge it or get credit for mitigation. The Division of Insurance can tell you how the law applies to your policy.

If wildfire is on your notice:

1. Ask the insurer for your wildfire score and the model it used.
2. Ask what mitigation would change the score.
3. Do the work, photograph it, and file the appeal in writing.
4. Look at the IBHS Wildfire Prepared Home certificate and ask each insurer whether it recognizes it.

The Colorado FAIR Plan

Colorado created its FAIR Plan through HB23-1288, and the plan began selling homeowners policies on April 10, 2025. It is a last resort, not a first stop. Key points from the Colorado FAIR Plan:

• Eligibility. You need proof that three insurers declined you.
• Coverage. Homeowners coverage at actual cash value, up to $750,000 for the dwelling. Actual cash value pays for depreciated value, not the full cost to rebuild.
• How to apply. Through a licensed agent, or call the plan at (833) 554-5425.

Because the plan pays actual cash value, compare it carefully with any surplus-lines quote you get. Some homeowners pair a FAIR Plan policy with a separate policy that fills in the gaps. Ask an agent.

A sensible order of steps

1. Shop the standard market first. Independent agents can quote several Colorado insurers. Each one prices hail and wildfire differently.
2. Fix and document. A new roof, cleared brush and ember-resistant vents give underwriters a reason to say yes.
3. Collect declinations. Keep every written no. You need three for the FAIR Plan.
4. Compare surplus lines and the FAIR Plan. Look at price, actual cash value versus replacement cost, deductibles and exclusions.
5. Tell your lender. If you have a mortgage, let the servicer know you are replacing coverage before your policy lapses.

After a wildfire or major hail event

Colorado has passed several laws in recent years to help homeowners after large disasters, including longer timelines to rebuild and more access to additional living expenses. If you have an open claim from a declared disaster, ask the Division of Insurance whether special rules apply to your renewal before you accept a nonrenewal at face value.

Flood is separate

Homeowners policies in Colorado do not cover flood. Burn scars can raise flood and debris-flow risk for years after a wildfire. Check your address on FEMA's Flood Map Service Center and ask about flood coverage while you shop.

Questions to ask every Colorado agent

• Does this policy pay replacement cost or actual cash value on the roof?
• What is the wind and hail deductible, in dollars?
• Does the company use a wildfire score, and how can I appeal it?
• Which mitigation steps earn a discount?

When to call the Division of Insurance

Call (303) 894-7490 or (800) 930-3745 if your notice arrived with less than 60 days left, does not state the reasons, or your insurer will not explain a wildfire score. To talk through replacement options, call us.

Not sure what your letter says? Use the notice decoder. Roof the problem? Read roof-age rules. Other states: all state guides.

Sources

• HB23-1174, Homeowner insurance reforms (Colorado General Assembly)
• HB25-1182, Wildfire risk models
• HB23-1288, Colorado FAIR Plan
• Colorado FAIR Plan
• Colorado Division of Insurance
• NOAA NCEI Storm Events Database