Colorado Wildfire: Insurance Rates Expected to Rise Due to Costly Blaze

by Quentin Blount
colorado-wildfire-insurance-rates-expect-rise-due-costly-blaze

We’ve got some bad news for all of you Outsiders in the state of Colorado. You may be dealing with higher insurance rates thanks to the Colorado Wildfire.

The Marshall Fire that ravaged the state of Colorado has destroyed more than 1,000 homes, businesses, and vehicles as well. That’s why experts in the insurance industry are saying that customers across the state need to be paying attention to their insurance prices moving forward. They believe the Colorado wilfire will impact everyone’s rates.

That’s right, folks — there’s a good chance that insuring your home, business, or even your car is going to cost more for Coloradans in the near future. As a matter of fact, some insurance companies are outright refusing to do business in the state.

Speaking of insurance experts, Trey Whitlock is one of them in the Pikes Peak Region. He has more than 15 years of experience helping his fellow neighbors with their insurance issues. He spoke to KOAA News in Southern Colorado recently, telling people to watch their premiums.

“If we’re at a thousand homes and that’s a pretty affluent area,” Whitlock said. “If each house is $500,000, plus you’ve got $500,000 or so in personal property in the house, debris removal, all that kind of stuff, I mean you’re looking at $1 Billion easily towards the insurance industry. Which, inevitably is going to raise the rates.”

Homes, Businesses, and Vehicles Destroyed in Colorado Wildfire

Even though Whitlock and other experts are mostly focused on homes and businesses, they are also anticipating an influx of vehicle claims due to the Colorado wildfire.

“It hit so fast you don’t know if people were able to get home and get their car out and get away from the fire,” Whitlock continued. “So I imagine we’re going to see quite a few vehicle claims as well.”

Information gathered from the National Association of Home Builders indicates that costs rose in 2021. That includes costs of both home-building materials and construction-related labor. So, how does that factor in when it comes to the Colorado wildfire? Well, the rise in building costs across the board means that many of those who lost their homes in the fire — some 1,000 or more — could be underinsured. Ultimately, there’s a chance they won’t have enough coverage to rebuild their home back to normal.

To combat this, Whitlock is advising his fellow Coloradans to make a habit out of revisiting their insurance policies.

“See what’s out there and see if somebody can save you some money. Every agent appreciates loyalty, but at the same time we’re all having to tighten the belt a little bit.”

If you have been personally affected by the Marshall Fire or just have questions, you can call the insurance commissioner’s office at 303-894-7490 or email them at [email protected]

Outsider.com