2026-09-10 · Colorado · Regulation

For the first time, a Colorado insurance regulation puts a condominium association's master policy inside the wildfire-mitigation disclosure regime — and names HOA-issued mitigation letters as evidence an insurer must be willing to consider. Division of Insurance Regulation 5-1-28 takes effect October 1, 2026. Its regulator-facing companion, Regulation 5-1-29, was adopted August 20, 2026 and takes effect January 1, 2027. Both implement HB25-1182.¹

The definition that brings associations in

Regulation 5-1-28 applies to “all admitted insurers that issue homeowner insurance policies and property insurance policies in Colorado and the Colorado FAIR Plan” — and it defines the second term:

“‘Property insurance policies’ … shall mean commercial policies covering residential condominium units as defined in § 38-33-103 (1), and multifamily residential housing as defined in § 24-32-3701 (9).”

Commercial farm and ranch policies are excluded, as are non-admitted surplus-lines insurers. Regulation 5-1-29 carries the same applicability clause and the same definition.

Discounts become mandatory if the model does not see mitigation

The operative rule in 5-1-28: insurers or the FAIR Plan that use wildfire risk models or catastrophe models and “do not incorporate property-specific and community-level mitigation actions into such models shall provide discounts for policyholders or applicants who demonstrate that property-specific or community-level mitigation actions have been undertaken.”

Alongside that, the insurer must post in an easily accessible place on its public website the categories of mitigation actions that can earn a discount, “the potential range or maximum level of such discounts,” and the process for appealing a wildfire risk score or the application of a discount. An insurer that offers no discounts must post that fact.

1. Regulations Adopted But Not Yet Effective, Colorado Division of Insurance (Regulation 5-1-28, effective October 1, 2026; Regulation 5-1-29, effective January 1, 2027) ↩
2. Regulation 5-1-29, adopted text, 3 CCR 702-5, Colorado Division of Insurance (filing requirements for wildfire risk models and mitigation discounts) ↩
3. Notice of Adoption — Emergency Regulation 26-E-04 and New Regulation 5-1-29 (August 20, 2026), Colorado Division of Insurance ↩
4. HB25-1182 signed act text, C.R.S. 10-4-124 — the statute both regulations implement ↩
5. "Hail is the Number One Cost Driver of Insurance in Colorado," Colorado Division of Insurance ↩