Colorado's New Wildfire Rules Are Now in Effect: What Homeowners and Agents Need to Know

As of today, Colorado has two new wildfire-related rules in effect:

1. New homes and major additions in wildfire-prone areas now have to meet the state's Wildfire Resiliency Code (fire-resistant materials, defensible space, etc.)

2. Insurance companies now have to disclose their wildfire risk models and give you a written risk score if you ask. If your home has any wildfire mitigation work done - new roof, cleared brush, hardened siding - it's worth asking your insurer about a discount.

The Quick Facts

• What's happening: Two major pieces of Colorado wildfire policy both reach full effect on July 1, 2026 — the Colorado Wildfire Resiliency Code (CWRC) and House Bill 25-1182 (insurer wildfire-risk transparency).

• Bill/code numbers: 

  • SB23-166 – created the Wildfire Resiliency Code Board (WRCB)

  • SB25-142 – extended local adoption timelines for the code

  • HB25-1182 – insurer wildfire risk model transparency & mitigation discounts

  • SB26-155 – created the Strengthen Colorado Homes Enterprise (insurance market study/fee)

• Effective date: July 1, 2026 (code enforcement + insurance transparency law both begin today)

• Who it affects: New construction and major renovations/additions (over 500 sq. ft.) in Colorado's Wildland-Urban Interface (WUI); all homeowners insurers writing policies in Colorado

• Does NOT apply to: Existing homes with no qualifying renovation, most of Denver metro, federal/tribal land

Part 1: The Colorado Wildfire Resiliency Code (CWRC)

• Colorado's first-ever statewide building code specifically for wildfire-prone areas

• Created by SB23-166 (2023), which established the Wildfire Resiliency Code Board

• The Board adopted the actual code on July 1, 2025

• Local governments (cities, counties, fire districts) in WUI areas were required to adopt the code by April 1, 2026

• Today, July 1, 2026, is the full enforcement deadline — local jurisdictions must now actively enforce it

• SB25-142 extended the original adoption window from 3 months to 9 months after the Board finalized standards, giving towns more runway

Who has to comply

• Applies only inside designated Wildland-Urban Interface (WUI) zones, mapped by fire intensity: Low, Moderate, or High

• Applies to new construction and additions/alterations over 500 square feet

• Not retroactive — existing homes with no qualifying renovation are exempt

• HUD-code manufactured homes are exempt on their first installation

• Historic-register properties may qualify for exemptions

What the code actually requires

• Structure hardening: fire-resistant roofing, siding, vents, and decking

• Class A exterior wall ratings required in Moderate and High Intensity zones

• Natural wood siding is still allowed — but only if it's fire-retardant-treated (FRTW)

• Defensible space requirements around the structure (vegetation/fuel management)

• Estimated cost impact: roughly 2.7%–20% more to build, depending on who you ask (state estimate is lower; homebuilder groups estimate higher)

Part 2: The Insurance Side - HB25-1182

This is the piece your clients will actually ask you about.

• House Bill 25-1182 takes effect July 1, 2026

• Requires insurers to be transparent about their wildfire risk models — no more "black box" pricing

• Insurers must provide a written wildfire risk score within 15 days of an application or renewal request, if asked

• If an insurer doesn't have a formal risk model, they must offer a manual mitigation discount to policyholders who've hardened their home

• Insurers must show how mitigation steps (defensible space, hardened roofing, etc.) affect a homeowner's score or pricing

• Policyholders can appeal a risk score or denied discount using documentation of completed mitigation work

Related: SB26-155 (Strengthen Colorado Homes Enterprise)

• Creates a new enterprise inside the Division of Insurance

• Funded by a fee assessed on insurers

• Directs a study into wildfire insurance market competition and availability in high-risk areas - worth watching for future rule changes

What This Means for Homeowners Insurance - Set the Record Straight

This is the part that causes the most confusion, so it's worth repeating clearly:

• The CWRC map is NOT an insurance map. The state has confirmed insurers cannot use the code's WUI/fire-intensity map to justify raising a homeowner's rate.

• Insurers use their own risk models, not the state's construction-code map, to underwrite and price policies.

• Mitigation still matters for pricing - but now, thanks to HB25-1182, insurers have to show their work and offer a documented discount path.

• The FAIR Plan remains the safety net for homeowners who can't find coverage elsewhere in high-risk areas.

• Building to the new code may lower long-term risk of total loss, which can support claims history and future insurability - even though it doesn't guarantee an immediate premium cut.

Talking Points for Client Conversations

• "This is a building code for new construction, not a retroactive requirement on your current home."

• "Ask your insurer for your written wildfire risk score - as of today, they're required to provide it within 15 days if requested."

• "If you've done mitigation work (defensible space, roof replacement, siding), document it - you now have a legal basis to ask for a discount or model adjustment."

• "The map used for the building code is different from the map your insurer uses to price your policy."

Sources: Colorado Division of Insurance, Colorado Division of Fire Prevention and Control, Colorado General Assembly (SB23-166, SB25-142, HB25-1182, SB26-155), Colorado Public Radio, Colorado Legislative Council Staff.

What this means for inspections

At Arrow Home Inspections, we will now be adding a helpful 3-tier system to reports so agents and clients can request a discount for their mitigation efforts. What will we be checking?

A. Roof & Attic

• Class A fire-rated roof covering installed (confirm rating on manufacturer label/invoice, not just visually)

• No open eaves - soffits are boxed/enclosed

• Roof valleys clear of debris accumulation points; no vegetation overhang within code clearance

• Attic and roof vents are ember-resistant (mesh ≤ 1/8", listed WUI vents) — not standard louvered vents

• Chimney has a spark arrestor screen

B. Exterior Walls & Siding

• Siding material matches what's required for the property's fire intensity zone

• If wood siding is used: confirm fire-retardant treatment (FRTW) documentation/tag is present — don't assume

• No unrated decorative wood trim in high-risk contact zones

• Gaps and penetrations (pipes, vents, utility entries) are sealed — embers exploit these

C. Windows & Doors

• Dual-pane or tempered glass on at least one pane (single-pane annealed glass is a common fail point)

• Window/door frames are non-combustible or rated material where required

• Garage door has a weather seal — gaps let embers in

D. Decks, Porches & Attachments

• Decking material is ignition-resistant or code-listed composite — not untreated wood in Moderate/High zones

• No combustible storage (firewood, propane) directly underneath or against the deck

• Under-deck area is enclosed or skirted to prevent ember accumulation

• Fences attached to the structure use non-combustible material for the last several feet at the connection point

E. Vents & Openings (High-Priority Fail Points)

• Foundation/crawlspace vents are ember-resistant

• Gable end vents are ember-resistant

• Dryer vents and other wall penetrations have appropriate covers

F. Defensible Space (Zone 0–2, measured from structure)

• Zone 0 (0–5 ft): No combustible mulch, plants, or stored items touching the structure

• Zone 1 (5–30 ft): Vegetation thinned/spaced per code; no "ladder fuels" connecting ground vegetation to tree canopy

• Zone 2 (30–100 ft, where applicable): Reduced fuel load, mowed/maintained

• Tree canopy clearance maintained from roofline and chimney

• Gutters are clear of leaf/needle debris at time of inspection

G. Documentation to Photograph & Attach

• Roof material tag/label

• Siding/FRTW treatment certification

• Vent product listing (WUI-rated)

• Wide shots of defensible space zones 0–2

• Any manufacturer compliance certificates provided by builder

Using a simple 3-tier flag so agents and clients can act fast without re-reading the full report:

• 🟢 Compliant — meets zone requirement, documented

• 🟡 Needs Documentation — appears compliant but missing paperwork/labels (common with siding treatment and vent listings)

• 🔴 Non-Compliant / Verify — does not appear to meet code for the zone; flag before closing or before submitting for insurance mitigation credit

This flag system doubles as a quick reference when a homeowner later asks their insurer for a mitigation discount - you can point directly to the 🟢 items as supporting evidence. Request the mitigation discount under HB25-1182.

Reach out to Arrow Home Inspections for any assistance on verifying these new requirements, we are happy to help!

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