What Colorado Homeowners Need to Know About House Bill 25-1182: A Big Shift in Wildfire Insurance

Published: July 2025 | Informational Resource for Colorado Homeowners

As Colorado faces more frequent and severe wildfires, state lawmakers have been working to improve resilience and transparency in wildfire mitigation and insurance practices. One of the most significant developments this year is the passage of House Bill 25-1182, which went into effect in August 2025.

This law is aimed at increasing transparency between homeowners and insurance providers regarding wildfire risk, and it marks a major shift in how wildfire mitigation may influence home insurance policies in Colorado.

This article explains what HB 25-1182 does, why it matters, and how it may affect homeowners—especially those living in wildfire-prone areas such as the Colorado Front Range and major mountain communities like Estes Park, Evergreen, Nederland, Durango, and Glenwood Springs.

🔍 What Is House Bill 25-1182?

House Bill 25-1182 requires insurance companies that use wildfire risk models to disclose specific information to homeowners, including:

• How wildfire risk impacts their insurance premiums or eligibility

• The specific wildfire risk classification or score assigned to their property

• Actions the homeowner can take to reduce that risk

• Clear timelines for insurers to respond to information requests or appeals

The law was passed by the Colorado General Assembly in 2025 and became effective on August 6, 2025. It is one of several recent efforts to align wildfire preparedness, property resilience, and the insurance market.

🏡 Why This Legislation Matters

For years, many Colorado homeowners have reported sudden increases in insurance premiums, denial of coverage, or policy cancellations based on wildfire risk assessments they had no insight into. In some cases, even properties that had undergone extensive wildfire mitigation still faced steep premiums or lost coverage altogether.

HB 25-1182 seeks to solve this problem by introducing transparency and accountability into the process. Now, homeowners can understand how their risk is being assessed—and potentially influence that score by taking specific mitigation actions.

This is especially important for residents in Wildland-Urban Interface (WUI) areas, which include large parts of Boulder, Larimer, Jefferson, Eagle, and La Plata counties.

📜 Key Provisions of HB 25-1182

Here are the most important features of the bill:

1. Disclosure of Wildfire Risk Scores

If an insurer uses a wildfire risk model to determine your premium or coverage eligibility, they must disclose the following upon request:

• Your property's wildfire risk classification or rating

• The factors used to determine that rating

• The impact of your wildfire risk on your insurance policy

2. Information About Risk Reduction

Insurers must provide homeowners with information about specific mitigation actions that could reduce wildfire risk and result in premium reductions or continued eligibility for coverage.

3. Timelines for Response

When a homeowner requests information:

• The insurer must respond within 15 days for policy applications

• Within 30 days for renewals or changes

• If a homeowner appeals a decision or score, the insurer must respond within 30 days

4. Applies to All Insurers Using Wildfire Models

Any insurance company operating in Colorado that uses fire risk models (such as proprietary modeling tools, mapping software, or scoring systems) is subject to this law.

🧯 How This Affects Homeowners

This legislation provides several new rights and opportunities for Colorado residents:

• Increased Transparency: Homeowners now have the ability to see how wildfire risk is calculated, rather than being in the dark about why their policy was changed or canceled.

• Mitigation Incentives: By disclosing what specific actions will reduce risk, the law encourages and rewards homeowners who invest in wildfire defense.

• Appeal Rights: Homeowners who believe their property has been misclassified or unfairly penalized can now appeal with a guaranteed response window.

📍 Relevance to the Front Range and Mountain Towns

Much of Colorado’s population resides in areas classified as high or extreme wildfire risk. The Wildland-Urban Interface continues to grow as development expands into forested or mountainous areas.

Key communities likely to benefit from this legislation include:

• Front Range Cities: Boulder, Fort Collins, Loveland, Golden, Colorado Springs

• Foothill and Mountain Communities: Evergreen, Nederland, Lyons, Conifer, Estes Park

• Southern and Western Slope Areas: Durango, Pagosa Springs, Glenwood Springs, Salida, and Steamboat Springs

In these areas, where insurers have been especially cautious or restrictive, HB 25-1182 could offer homeowners new options to retain or regain affordable insurance coverage.

🔧 Examples of Mitigation Measures That May Impact Ratings

While the bill does not specify which measures will result in premium reductions (as that depends on each insurer's policies), typical wildfire mitigation practices that could influence your risk score include:

• Class A fire-rated roofing materials

• Noncombustible siding and trim

• Ember-resistant vents and soffits

• Cleared defensible space around the home

• Removal of flammable landscaping

• Installation of wildfire sprinkler systems

• Proper storage of wood piles and other combustibles

Homeowners can request a list of mitigation options from their insurer under the new law.

⚖ Relationship to Other Wildfire Legislation

HB 25-1182 is part of a broader legislative trend in Colorado. Other recent laws include:

• The Colorado Wildfire Resiliency Code (2025): Requires new construction in designated WUI areas to meet minimum wildfire-resistant standards.

• State-level grants and funding: For homeowners and communities undertaking mitigation efforts.

• Efforts to create a Fair Access to Insurance Requirements (FAIR) Plan: For homeowners unable to obtain coverage in the private market.

Together, these laws form a growing effort to reduce wildfire losses statewide and ensure that resilient building practices are recognized and supported.

🔄 What Should Homeowners Do Now?

Here’s a checklist for those interested in understanding or improving their insurance position under the new law:

1. Contact your insurance provider to request your wildfire risk classification and how it was determined.

2. Ask for a list of recommended mitigation actions that could improve your eligibility or premium.

3. Review recent mitigation projects you've completed (roofing, siding, vents, defensible space).

4. Keep documentation and photos of mitigation efforts.

5. Appeal decisions if necessary—you are now guaranteed a formal response.

📚 Final Thoughts

House Bill 25-1182 reflects a major shift in how wildfire risk is handled by insurance companies in Colorado. By requiring transparency and providing a process for recognition and appeal, the legislation empowers homeowners to better understand and manage their wildfire risk—and to advocate for fair treatment by insurers.

For those living in high-risk zones throughout the Front Range and Colorado’s mountain towns, staying informed and proactive is more important than ever.