2026-09-10 · Colorado · Regulation

Colorado's insurer of last resort has been open to commercial business since June 17, 2025 — and the state has told associations in writing that it may not meet their needs, and that they may not amend their governing documents to make it fit. The guidance is an HOA Center Advisory posted February 13, 2025 by the Colorado Division of Real Estate, and it is the most useful document a Colorado board can read before treating the FAIR Plan as a plan.¹

The dates

HB23-1288 created the Colorado FAIR Plan and was signed May 12, 2023. The Governor appointed a board in January 2024, and the Division of Insurance approved the Plan of Operation on July 26, 2024. Residential homeowners policies became available April 10, 2025. Commercial property policies — the line an association would use — became available June 17, 2025.²

The coverage, in the state's own words

Homeowners property: “Coverage not to exceed the total of $750,000 for property and contents combined for actual cash value, not replacement cost.”

Commercial property: “Coverage not to exceed the total of $5,000,000 for property and contents combined for actual cash value, not replacement cost.”

“A property location is defined as a single building with at least 100 feet of distance between it and any other insured building.” And: “Additionally, coinsurance may apply for underinsured risks.”

The perils are a short named list: direct loss from fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, volcanic eruption, and vandalism or malicious mischief.

Eligibility requires three declinations from standard insurers and a property considered uninsurable for wildfire exposure, location, claim history or age. An applicant is ineligible if a private insurer has offered coverage — even at a high price. Properties are still inspected, and applications can still be denied.

1. HOA Center Advisory: The Fair Access to Insurance Requirements ("FAIR") Plan — An Insurer of Last Resort (February 13, 2025), Colorado Division of Real Estate ↩
2. Fair Access to Insurance Requirements (FAIR) Plan, Colorado Division of Insurance (launch dates for residential and commercial lines) ↩
3. About the Colorado FAIR Plan (funding, assessments and phased roadmap) ↩
4. HB25-1205, "Implement Fair Access to Insurance Requirements Plans" — bill page, Colorado General Assembly ↩
5. HB24-1108 Final Report: Analysis of HOA & Lodging Facilities in Colorado, Lewis & Ellis for the Colorado Division of Insurance ↩