CO HB1182

Insurers using wildfire risk models or catastrophe models must submit model descriptions, actuarial justifications, and explanations of underwriting impacts to the Insurance Commissioner as part of rate filings, with models treated as trade secrets exempt from open records disclosure.

Wildfire risk models must incorporate property-specific mitigation actions (defensible space, building hardening, "Wildfire Prepared Home" certification) and community-level mitigation activities (forest treatment, fuel reduction); insurers not incorporating these must provide discounts to policyholders who demonstrate such actions.

Insurers must provide annual written notice to policyholders and applicants including their wildfire risk score, plain-language explanation, score range, primary property features influencing the score, and potential impact of mitigation actions on the score.

Policyholders and applicants may appeal inaccurate wildfire risk scores directly to insurers, who must acknowledge appeals within 10 calendar days and respond with a decision within 30 calendar days.

Applies to homeowner's insurance, residential condominium policies, and multifamily residential housing; takes effect July 1, 2026 for policies issued or renewed on or after that date.