As many homeowners face a growing insurance crisis, state leaders across the region are considering reforms. Two groups have recommendations for them as state legislatures begin convening again.
Rising homeowners insurance premiums and high levels of policy cancellations are major issues in the West and across the country. And that has significantly raised the political profile of insurance policy, according to a recent report from the advocacy groups Climate Cabinet and the Insurance Fairness Project.
“Given the scope and nature of this crisis, it makes sense that we have seen more state decisionmakers eager to show action on insurance policy,” it opens. “To date, however, state governmental interventions have largely been deregulatory.”
“State policymakers should learn from what their counterparts in other states are doing well, as well as where there are major areas for improvement,” it continued.
“Probably the most significant insurance policy development in the country was in Colorado,” said co-author Jordan Haedtler, a financial strategist with Climate Cabinet.
That successful 2025 reform “requires insurance companies to account for wildfire mitigation at the property, community, and state levels when assessing a homeowner’s risk and setting premiums,” a summary in the report reads. “It also requires greater transparency by requiring insurers that use catastrophe models or wildfire risk models to provide detailed information about their risk assessment methods, including a description of the model and its impact on insurance rates.”
Haedtler said it could improve access and affordability, as well as serve as a “really good foundation for future reforms.”
“There are a whole suite of solutions, big and small, that can help,” he added. “The bill in Colorado is a great initial step that can lay the framework for good investments and smart strategies for many years to come.”
It’s also inspiring reforms elsewhere. Idaho and Washington legislators are likely to consider a similar measure this year.
Haedtler argued that it’s important for state leaders to include a wide range of stakeholders when developing reforms, including climate and housing advocates, and of course homeowners themselves.
“Insurance regulation is too important to be set only in closed door rooms by the regulated industry itself,” he added.
This story was produced by the Mountain West News Bureau, a collaboration between Boise State Public Radio, Wyoming Public Media, Nevada Public Radio, KUNR in Nevada, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio and KJZZ in Arizona as well as NPR, with 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.
