Several Gulf Coast states pay people to protect their homes against hurricanes. That idea is now spreading to the Mountain West, but for hailstorms and wildfires.
Disasters are driving up the cost of home insurance. Wildfire risk is the biggest concern in parts of the region. In Colorado, Wyoming and New Mexico, hailstorms are a major cost driver.
Colorado lawmakers are proposing a solution: give residents grants to protect their homes.
“Stronger homes mean fewer claims, less damage and more stable insurance markets over time,” said Daniel Furman, a lobbyist for the American Property Casualty Insurance Association, testifying in favor of the Colorado bill after amendments were added.
The proposal would issue a .5% fee on the home insurance premiums that insurance companies collect, which would generate about $20 million annually. Most of the money would be given to homeowners via grants for roof retrofits that better withstand wind and hail.
The concept has been tested, said Jordan Haedtler, who works on climate finance issues with the nonprofit Climate Cabinet. Alabama launched a program more than a decade ago, and data shows it’s helping.
“Roofs in Alabama that had been fortified and had obtained assistance performed much better and had lower insurance losses when a hurricane hit the state in 2020,” he said.
Idaho’s insurance commissioner proposed a similar program to help homeowners prepare their properties for wildfires, but bills introduced this year and last did not move forward. Colorado’s bill, SB-155, has passed two Senate committees. Some insurance industry representatives remain concerned about the fee to pay for the grant fund.
This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.
