In June 2025, Colorado answered with a first-of-its-kind law (HB 25-1182) that could become a template for wildfire-prone states across the West. The law reshapes how wildfire risk is modeled, priced, and communicated. Crucially, the law provides practice guidance on how design professionals can provide fire resilient solutions that also support their clients’ ability to more affordably purchase property insurance in challenging markets.
A turning point for insurance transparency
Starting July 1, 2026, property insurers in Colorado must:
- Disclose how they determine wildfire risk, including which models or scoring systems they use;
- Indicate whether their models recognize mitigation efforts, like ember-resistant vents or defensible space;
- Provide annual wildfire risk scores to policyholders, with clear explanations and appeal options; and
- Publicly list actions that can earn premium discounts and explain how to request them.
Even more important: insurers must offer discounts for wildfire-resilient features, even if their models don’t yet recognize those features, so long as the homeowner provides documentation.
What this means for design professionals
If you're designing homes in wildfire-prone regions—Arizona, California, Idaho, New Mexico, Oregon, Utah, and Washington—Colorado’s model offers a roadmap grounded in statutory law:
- Incorporate IBHS Wildfire Prepared Home standards into your specs, including Class A roofs, 0–5 ft non-combustible zones, ember-resistant vents, enclosed eaves, etc.
- Document these features clearly in your drawings and specifications
- Talk to clients about insurance early, especially in areas where coverage is becoming scarce or costly
The new law aligns design with insurability. It also turns mitigation measures into measurable financial value, and potentially a barrier against non-renewal of an insurance policy.
The big picture: Why this law indicates a shift
Colorado’s new law doesn’t just help homeowners; it reflects a broader crisis unfolding in insurance markets across the US. As climate-fueled disasters increase in intensity and frequency, many insurers are exiting high-risk areas, raising premiums, or limiting coverage. This is no longer just a California or Florida issue. Design professionals across the West are seeing firsthand how insurance is becoming harder to secure, even for well-designed homes.
What this law does, uniquely, is formalize a link between good design and financial protection. The law mandates that insurers recognize documented mitigation, even when their models lag behind. That means design professionals now have a clearer, more actionable path. While the path is grounded in law in Colorado, it provides a broader playbook for design professionals practicing in any state vulnerable to wildfire risk: design for resilience. Document it clearly. Help your clients stay insurable.
Colorado’s approach may become a model for other states navigating wildfire risk and insurance instability. For design professionals, it’s a chance to get ahead of the curve and support clients not only in creating safer buildings, but in protecting their ability to insure and finance their projects.