COLORADO SPRINGS, Colo.- The escalating costs of insurance have not gone unnoticed by many Coloradans in recent months, prompting insights from Michael Conway, Colorado’s Insurance Commissioner, on potential remedies.
Acknowledging the nationwide prevalence of this issue, Conway emphasized that policies of all types are experiencing a surge in expenses. His office is actively engaging with legislators to explore potential solutions.
Last year, Colorado lawmakers enacted The FAIR Plan, designed as a last-resort option for property owners struggling to secure insurance through conventional channels. Conway’s office spokesperson revealed that while FAIR Plan premiums are expected to be elevated, coverage is anticipated to be available by 2025. Conway clarified that the FAIR Plan is not a government insurance provider, assuring that the state is not assuming any risks.
For homeowners unable to find coverage from standard insurers like Allstate or State Farm, the FAIR Plan offers an alternative to ensure the security of their homes. Conway emphasized that it is a safety net for those unable to obtain any coverage in the market.
Additionally, Conway disclosed that a forthcoming bill at Colorado’s Capitol aims to address the issue of escalating costs related to insuring homeowners associations.
News have highlighted concerns from individuals experiencing rises in Homeowners Association (HOA) dues. According to an HOA manager, increased dues directly correlate with rising insurance costs, with one notable instance witnessing a 700% year-over-year premium increase in Colorado Springs.
Conway anticipates legislation this year directing efforts to study ways to enhance affordability in the HOA insurance market. While acknowledging increased costs, he does not anticipate major insurance providers withdrawing entirely from specific markets in Colorado, a phenomenon observed in other states.
Preparedness measures have been taken by the state to address potential scenarios where certain areas or a major insurer might consider pulling out, but Conway expresses confidence that all major insurers will continue operating within the state.
