Homeowners insurance in Colorado's foothills has become increasingly challenging since the Marshall Fire in December 2021, which caused over $2B in damages. The recent wildfires in Los Angeles and rising natural disasters nationwide are straining the insurance industry, and Colorado homeowners will feel the impact sooner than you may think.

Insurers are reassessing wildfire risks, potentially leading to:

Premium Increases: Higher rates in wildfire-prone areas like Colorado. Local insurers are now saying that it’s not just the foothills that are being assessed as high wildfire risk.

Policy Cancellations: Many carriers are not renewing policies in high-risk areas, especially the foothills.

Stricter Coverage Requirements: Homeowners may need fire mitigation measures (e.g., defensible space, home hardening) to maintain coverage. On site inspections will be required in many cases to obtain and maintain coverage.

Reduced Coverage Options: Some insurers may limit wildfire claims or cap payouts. The Colorado FAIR Plan will provide basic coverage, but it may come with challenges.

Now is the time to educate yourself and clients on fire mitigation. More to come on "Home Hardening" and what you need to know to keep your homes protected.