Public Policy

Session II

Madeleine Fernandez, "A Homeowner Insurance Crisis: Colorado’s Legislative Solutions to Wildfire-Related Insurance Dilemmas"

Colorado faces surging wildfire events compounded with increasing housing development. Sustained wildfire losses exacerbate private insurance losses, contributing to higher homeowner premium rates and a decline in insurance availability. Colorado has taken legislative action to mitigate insurer loss, encourage insurer coverage, and ensure fair homeowner premiums. This article analyzes Colorado’s current legal response to the state’s insurance crisis. First, I examine Colorado’s relevant legislation. I next synthesize datasets from the National Association of Insurance Commissioners, Colorado Division of Insurance, and Colorado Forest Atlas to identify trends and wildfire factors that potentially impact insurer premiums. Without multi-factor analysis, most results are too variable to be conclusive. Still, Colorado homeowners premiums are rising and private insurers seem to respond to wildfire events. To reduce identified problems, further legislation should expand Colorado’s FAIR Plan, require bundled insurance, mandate wildfire insurance, require premium pricing approval, promote wildfire mitigation, and standardize property-level risk models.

Student Major(s)/Minor: Biology; Environment & Sustainability (Policy Track)

Advisor: Dr. Alexandra Joosse