New Homeowners Law for Homeowners in Colorado
Today, August 12, 2026, a new law takes effect that aims to attack the problem at its source: Senate Bill 26-155, which creates the Strengthen Colorado Homes Enterprise.
This legislation does not change how hail claims are paid on your existing policy. Instead, it creates a long-term strategy to reduce future claims by helping more homeowners install hail- and wind-resistant roofs—and, over time, lower the risk (and the cost) for everyone.
What SB26-155 Actually Does
Signed by Governor Jared Polis on June 4, 2026, the law establishes a new state enterprise inside the Colorado Division of Insurance. Its core functions include:
- Collecting a fee from insurance companies equal to 0.5% of the multiperil homeowners premiums they collect in Colorado (starting in calendar year 2027). Importantly, insurers cannot pass this fee through to policyholders as a surcharge.
- Using at least 85% of the fee revenue for grants that help Colorado homeowners retrofit their homes with resilient roof systems designed to better withstand hail and wind.
- Setting standards for those resilient roofs, supporting contractor training, analyzing hail-loss data, and studying wildfire-related insurance challenges.
- Requiring insurers (beginning no sooner than January 1, 2027) to report annually on the number of homes with resilient roofs, the discounts they offer for those roofs, and the difference in claim frequency and severity between homes with and without them.
The Enterprise is capped so that total fee collections stay under $100 million during its first five years. Grants will prioritize primary residences and will consider factors such as household income, roof age, home size, and whether the property sits in a historically higher-risk weather area or a locality with hail-resistant building codes.
Grants are expected to become available in 2027 once the board is appointed, rules are adopted, and funding begins flowing.
Why This Matters for Your Home and Your Premium
Impact-resistant roofing (often Class 4 rated shingles or equivalent systems) has been shown to reduce both the frequency and severity of hail claims. Many carriers already offer meaningful premium discounts—sometimes 10–25% or more—for homes that have these roofs installed and properly documented.
State officials estimate that successful hail mitigation could eventually save the average homeowner between $82 and $387 per year on premiums, depending on location and the extent of the retrofit.
What You Should Do Right Now
- Review your current wind and hail deductible. Most Colorado policies now use a separate (often percentage-based) wind/hail deductible.
- Confirm how your policy pays for roof damage (replacement cost vs. actual cash value).
- Ask about impact-resistant roof discounts that many carriers already offer.
- Document your roof (invoices, product specs, photos) — this will matter for both current discounts and future grant applications.
- Schedule a no-cost policy review with an independent agent who can compare carriers and position you for the new program.
How Welsh Insurance Agency Helps
We’ve served Loveland, Fort Collins, and Northern Colorado families since 1987. As an independent agency and Trusted Choice member, we shop multiple A-rated carriers and help clients understand wind/hail deductibles, roof settlement options, resilient-roof discounts, and accurate replacement-cost limits.
Contact us for a complimentary homeowners insurance review:
- Loveland: (970) 663-5404
- Fort Collins: (970) 206-1810
- Website: www.wiainsurance.com
- Email: jeff@wiainsurance.com
Where Insurance is All About You.