House committee advances bill creating two insurance enterprises to tackle hail and wildfire losses

The House Finance Committee advanced House Bill 13-02 after hours of testimony and a series of negotiated amendments, sending the measure to the Appropriations Committee with a favorable recommendation. The bill creates two state-sponsored enterprises aimed at stabilizing the homeowners insurance market: a Strengthen Colorado Homes enterprise to help homeowners harden roofs and homes against hail and wind, and a Wildfire Catastrophe Reinsurance enterprise to provide state-based reinsurance capacity for wildfire losses.

Sponsor testimony emphasized that Colorado’s homeowners insurance market is under strain from both wildfires and severe hail. Representative Brett Brown, the bill sponsor, said the enterprises pair mitigation grants with a reinsurance backstop: “By investing in impact resistant roofing and other proven measures, homeowners can reduce out-of-pocket deductible expenses and make homes easier to insure,” Brown said. Insurance Commissioner Michael Conway told the committee the package is…