Glen Weinberg, owner of Fairview Commercial Lending, reported that his company’s property insurance premiums have risen by approximately 30% each year. This statement highlights the increasing costs faced by Colorado property owners.
"Our annual increase in property insurance premiums is around 30," said Weinberg. "Every time I was dropped I was able to obtain insurance albeit at a price and with certain stipulations. The overwhelming majority of property owners can obtain insurance at a price. A state-run insurance carrier is an idea that has already played out in other states and will lead to unintended consequences including higher prices, less insurance options, and ultimately a taxpayer bailout of the state insurance plan."
According to recent analysis, Colorado homeowners are now dealing with some of the highest insurance premiums in the United States, with average yearly costs reaching about $4,600. Premiums in the state have climbed nearly 58 percent from 2018 to 2023. This increase is attributed to catastrophic wildfires, severe weather events, and escalating property values impacting the insurance market.
The Economic Policy Institute indicates that tort costs—expenses from legal fees, settlements, and damages insurers must pay due to civil litigation and liability claims—are contributing to rising insurance rates. As these costs rise, insurance companies adjust premiums to account for higher financial risks.
Research suggests that growing legal activity by trial lawyers, including increased advertising and outside funding for lawsuits, has led to more frequent and larger insurance claims. These trends have raised costs for insurers who subsequently increase premiums for consumers. These practices are considered a significant factor in the rising insurance costs observed in Colorado.
Weinberg is based in Colorado and has over 20 years of experience in real estate investment and lending. He is recognized as an expert in hard money lending, valuation, and property finance. Weinberg manages Fairview Commercial Lending's operations and has been published in national real estate and finance publications.