Wildfire Risk Drives Home Insurance Costs Sky-High
- pinewoodlakewag
- 20 hours ago
- 2 min read
A new report from Colorado State University (CSU) confirms what many homeowners already fear: the cost of insuring a home in the Centennial State is soaring, fueled primarily by the increasing threat of wildfires.
According to the analysis by CSU’s Regional Economic Development Institute (REDI), Colorado is now ranked as the sixth-costliest state in the nation for homeowners’ insurance. The steep increase is hitting wallets hard, especially in areas susceptible to fire danger.
The Shocking Numbers Behind the Spike
The data paints a clear and alarming picture of a market under severe stress:
Skyrocketing Premiums: From 2018 to 2023, the average homeowners' insurance premium in Colorado increased by a staggering 58%.
High Annual Cost: The average annual premium now stands at $4,072 for $300,000 in coverage.
National Ranking: Colorado's costs are now among the highest, earning the state the undesirable rank of sixth-costliest nationwide.
The report highlights that this rapid acceleration in costs is directly tied to the heightened wildfire risk across the state. As the climate changes and fire seasons intensify, insurers are responding by dramatically raising rates or, in some cases, pulling out of high-risk areas altogether. This trend is making homeownership increasingly expensive and challenging, particularly for those living in the stunning, but vulnerable, Wildland-Urban Interface (WUI).
What This Means for Colorado Homeowners
The findings from the CSU REDI report, released on September 23, 2025, signal a critical need for action. Homeowners should be prepared to see continued premium increases, particularly if they live in areas identified as wildfire-prone.
The onus is now on policymakers, communities, and individual homeowners to invest in mitigation and preparedness. Measures like creating defensible space, using fire-resistant building materials, and supporting community-wide wildfire prevention efforts are more crucial than ever to stabilize the insurance market and protect property values across the state.
For a deeper dive into the data and analysis, you can view the full report on the CSU REDI website:
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