Homeowners Struggle with Insurance as Wildfire Risks Increase
Wildfires have become a significant concern for homeowners across the United States, and Colorado is no exception. While many residents take steps to protect their homes from fire, some are still facing challenges with their insurance coverage.
Jen and Steve Hoogendoorn, Colorado residents, recently learned that their home no longer met the eligibility requirements for their insurance policy. Farmers Insurance informed them of this decision, according to CBS News Colorado. The Hoogendoorns, however, had already taken several measures to mitigate fire risk.
They installed a steel roof, reinforced beams and columns, and surrounded their home with concrete, including the deck. They also removed a significant number of trees in the surrounding area. “The area around the home is mitigated [against fire] out to 100 feet. And then we’ve slowly worked through the forest,” Jen told CBS News Colorado. “We’re probably out at least 300 feet in varying amounts.”
The Hoogendoorns are also working with their neighbors to establish a clear evacuation route. Meanwhile, Farmers Insurance did not respond to CBS News Colorado’s inquiries. Steve expressed his frustration, saying, “I mean it is a business and I understand it but, give me an option. Don’t just call me and say we’re done with you.”
Insurance Reevaluations and Their Impact
The practice of disqualifying homeowners, who previously satisfied all policy requirements, makes it even more challenging for them to protect their livelihoods after a climate disaster. Carole Walker, executive director of the Rocky Mountain Insurance Information Association, noted, “Not only are we a high catastrophe state but those catastrophes are escalating, with both wildfire and hail.”
Legislative Action and Potential Relief
Recognizing the seriousness of the issue, the Colorado House recently passed a bill aimed at addressing the rising cost of property insurance. The legislation will reduce property insurance policy rates and calls for increased transparency from insurance companies regarding their wildfire mitigation risk models.
Furthermore, the bill grants policyholders the right to appeal their wildfire risk score if they believe it is inaccurate. This is a substantial step towards ensuring other homeowners do not experience the same difficulties as the Hoogendoorns.
Democratic state representative Brianna Titone, one of the bill’s co-sponsors, stated, “Wildfires pose a huge threat to the health and safety of Colorado communities. The legislation I’m sponsoring … ensures that property owners understand what actions they can take to protect their property in ways that also reduce their insurance costs, saving Coloradans money on property insurance and creating more fire-resilient communities.”
Increased fuel sources, such as dry forests, and various ignition sources, including lightning strikes, campfires, and sparks from power lines or vehicles, exacerbate wildfire risks, as reported by Resources for the Future.
