Northern El Paso County Coalition of Community Associations (NEPCO)- NEPCO hosts Colorado deputy commissioner of insurance

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By Dave Betzler

At its March 15 bi-monthly Membership Meeting at the Woodmoor Barn, NEPCO provided attendees with a brief business report, followed by guest speaker presentations focusing on homeowners associations (HOA) and homeowner insurance. NEPCO has 49 member HOAs which range in size from less than 100 to over 3,000 properties and are geographically dispersed from County Line south to Glen Eagle/ Northgate Road, Black Forest/Meridian on the east, and Monument/Mount Herman on the west. Members pay a small annual fee based on the number of properties within the HOA.

NEPCO provides a collective voice for area HOAs and property owners and serves as an advocate for community engagement and smart growth, twin essentials for maintaining a high quality of life in the Tri-Lakes community.

The business report included discussion of an enhanced web capability, a sophisticated map capability in collaboration with Monument Fire District, and an update on wildfire emergency preparedness that included Constant Connect, a Monument Fire District initiative to identify and link residents as an important technology for emergency evacuation of handicapped residents. Monument Fire and NEPCO are working jointly on development of a layered geospatial information mapping of the region’s HOAs, which will also display other data layers (e.g., metropolitan districts, water districts) and potentially, current and proposed land developments.

Guest speakers included Jason Lapham, Colorado deputy commissioner—property and casualty insurance, and Robb Soucek, a local insurance broker/agent. Colorado’s Division of Insurance regulates the insurance industry including both insurance companies and insurance agents.

Lapham addressed homeowners’ insurance challenges and opportunities, highlighting hailstorms and wildfires as the primary drivers behind rising insurance premium rates. Major increases in reconstruction costs, as well as construction of new homes in the wildland-urban interface and increasing density of housing developments also contribute to increased premium costs. Members were encouraged to access the Department of Insurance website (doi.colorado.gov) and review the new comprehensive Toolkit for Homeowners and HOAs on Insurance.

Discussion focused on recent HOA and homeowner-related state legislation. HB23-1174 addresses homeowner insurance and underinsurance and adds requirements for insurers: reporting costs of rebuilding after total loss, a stipulation for homeowner notification before cancellation or refusal to renew, and addition of guaranteed replacement cost coverage. HB25-1182 focuses on the increasing use of risk and catastrophe models, requiring public disclosure and transparency on how insurers determine risk and set premiums.

HB23-1288 established Colorado’s “last resort” insurance program or FAIR plan. FAIR provides a minimum of property insurance coverage for homeowners who have been denied insurance. HB24-1108 directs the Division of Insurance to complete a state property and casualty insurance market study to be published in 2026. The study will include assessment of market conditions in Colorado and recommendations to ensure insurance availability and sustainability for HOAs and property owners.

HB25-1362 establishes two state enterprises or businesses: Colorado Homes Enterprise and Wildfire Catastrophe Reinsurance Enterprise. Under the Homes Enterprise, insurers pay a fee that provides funding of a new grant program for homeowners to upgrade their roof systems. The Wildfire Reinsurance Enterprise, an initiative prompted by California’s recent catastrophic wildfires, provides reinsurance payments to insurers offering homeowner insurance in the event of a state or federally declared wildfire-related disaster. The reinsurance program requires insurers to sell insurance in high-risk areas and is designed to stabilize the homeowner insurance market.

The second speaker, Robb Soucek, a local insurance broker/agent, pointed to increased labor and material costs as major factors in dramatically rising insurance premiums, evidenced by a 70% rise in premiums (2020-24). Additional factors included reduction in the number of Colorado insurers and risk reduction measures by individual insurers. Homeowners were encouraged to compare their policies with multiple insurers and conduct an annual review of their insurance coverage.

The meeting concluded with short updates from previous NEPCO speakers. Chief Jonathan Bradley of the Monument Fire District emphasized the district’s availability to advise homeowners on individual property fire mitigation efforts. Sean Saw, president of Tri-Lakes Preservation, gave a brief update on the proposed Buc-ee’s development, noting major concerns over water availability and traffic volume.

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Guest speaker presentations as well as meeting minutes can be found on the NEPCO website, nepco.org. The next NEPCO Membership Meeting is scheduled for May 10, 10 a.m. to noon at the Woodmoor Barn.

Dave Betzler can be contacted care of editor@ocn.me.

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