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Patty Hood sees the hangovers from Colorado’s wildfires of the past few years: Homeowner’s insurance is getting either expensive or very hard to obtain.
Hood, an independent insurance broker in Eagle, talked about a couple of clients in Beaver Creek. One client has seen her home insurance bill more than double from year to year. Another has been dropped by the same carrier that insures that client’s primary home in Houston.
The problem goes beyond homeowner’s insurance, Hood said, and extends to commercial and auto insurance.
“It’s a big deal,” Hood said, adding that the situation has been worsening for at least the past year.
“We’re seeing carriers pull out of markets right and left,” Hood said.
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A few factors are at play.
One is on the industry side. Carrier losses have depleted reserves, leaving those companies little choice but to raise rates. That’s especially true in areas that are considered at high risk from fire, and with homes that are far from fire hydrants.
At a recent work session of the Eagle County Board of Commissioners, county Fire Mitigation Specialist Eric Lovgren said in addition to rising costs, some homeowners are being denied insurance coverage. Lovgren noted that recent state legislation provides assistance for homeowners and businesses, but limits in that law — $750,000 for residences and $5 million for businesses — isn’t enough to cover potential losses in many Eagle County neighborhoods.
Lovgren noted that he’s spoken with some local realtors who have lost sales because potential buyers couldn’t find insurance coverage.
“We need to get our lawmakers involved,” Eagle County Resiliency Director Tori Franks said, adding that the problem extends beyond Eagle County.
“This is in Colorado and nationwide,” she said.
Any possible aid from state lawmakers won’t come until the middle of 2025 at the earliest. Even without state intervention, Hood said “I don’t have a sense we’re going to see anything get better anytime soon.”
And, she added, the situation changes rapidly.
“It’s just a tough market now,” she noted. “You’ll get guidelines, and 30 days later it’s changed. It’s not pleasant … I don’t think people really understand how significant this is.”
