2013 Wildfires Are Going To Hit Your Pocket Book…. Again…

Colorado is being hit hard again with wildfires. Unfortunately not only are the people who are directly affected going to be hurt by these fires, so are the rest of Colorado property owners. Millions if not billions of insurance losses has occurred this year..

These wildfires are going to drive up Colorado property insurance rates. In 2013, home insurance rates have gone up due to all the wildfires from 2012. The same thing will happen again to renewals 2014.

Lets start praying and possibly start doing some rain dances. Colorado needs rain and snow. BADLY.. Lets also hope we don’t get too much wind and hail. Even though hail does bring the BADLY needed moisture, the problem is that it destroys roofs.

Colorado the past decade is starting to show a state where property insurance has become a complex thing. Wildfires, wind and hail have caused this. Hopefully no more incidents will be passed on to the consumer’s pocket book in Colorado….

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From An Agents Prospective 5/22/2013

This year seems to gone by without any incident so far in 2013. No major hail, no crazy wild fires, well at least not yet. Last year in Colorado, we had a ton of hail and wild fires. Property Insurance companies lost Billions of dollars, homes were destroyed, and people were displaced.

As an indirect consequence, a lot of consumers opened up their home insurance renewals this year, only to see insurance has gone up. For some people, it went WAY up. Especially for people who live in Colorado Springs. Some homeowners saw their premiums double. This is due to the inevitable fact, that the cost of these claims eventually gets passed onto the consumer.

I am hoping we can dodge a couple of bullets this year. The Colorado Property Insurance  market has become incredibly hard for insurance companies to figure out. This is not only due to losses in the Calendar year of 2012, but also previous years.

Lets pray that we get no more wind, hail and wild fires this year. In the long run this will be good for consumers. This is so they don’t keep seeing their pocket-book hit each year, with extra cost in Homeowners insurance.

Home Insurance Rates Have Gone Up In Colorado

A lot of consumers have been getting their home insurance renewal statements lately and have been going into shock!!   Home insurance rates in Colorado have gone up on average about 10 to 15% and in some areas 40%.  These consumers can thank the tremendous amount of property losses taking place in the year 2012.  These losses are from wind and hail that we received in the summertime and wildfires that have been going on since the beginning of the year.

These wildfires include the Little Sand Fire, The Treasure Fire, Weber, Waldo and Flagstaff,  Lower North Fork, The High Park, Springer, Woodland and Last Chance, Ironing Board and Pine Ridge.  These wildfires have easily exceeded over $500,000,000 in damage, though the number not official, wildfires alone could reach eight to nine hundred million.

The state on top of all the wildfires also received a large amount of wind and hail.  During the  months of May, June and July, Colorado received a large amount of wind and hail.  This took place throughout the state of Colorado.

These losses eventually get passed onto the consumer one way or another, either by requiring 1-2% wind and hail deductibles or the consumer has seen insurance rates going up.  Some companies are even requiring that you package your auto and home and especially your rental property.  Companies are going towards or already have requiring that you package all your insurance products with them. The standalone home or landlord insurance policy is more than likely going to go away in Colorado.

If you are one of the consumers who is getting non-renewed or your home insurance rates have spiked, or if you are having problems getting any type of insurance on your home or auto, gives us a call.   As brokers we have multiple sources and can bundle your insurance needs.

Sources: –Rocky Mountain Insurance Information Association

Wikipedia

Waldo And High Park Fire Have Resulted In Nearly $450 Million Dollars In Losses

According to RMIIA, this wildfire season has been the most destructive in Colorado history. After major droughts through out Colorado, dry conditions caused 2 major wild fires to break out. So far the High Park & Waldo Cannon fire have cost nearly $450 million in losses and counting. This is all after the Lower North Fork fire, which burned 47 homes and killed two people. 2012 has by far been the worst year for insurance companies in Colorado. Not only have the wild fires contributed to major insurance losses, but hail, wind and flooding hasn’t helped either.  Alone this year, they have added up to about $322 million in losses.

So what does this all mean for your home insurance renewal coming in the mail with in the next year? Insurance companies are most likely going to have to pass on the nearly $800 million loss to consumers. A lot of companies are also looking at or already have gone to a mandatory %1 wind and hail deductible. We are also seeing a lot of companies making in mandatory, to have both your auto and home insurance bundled with them. They will no longer accept “mono-line” home insurance policies. This is also the same for “landlord” policies as well.

We are on a “bumpy ride” with property insurance rates and conditions for at least the next 3 years. Could even be longer. I personally think this is going to change how insurance works for a long time in Colorado. Not only have we had huge losses from wild fires, hail, wind and etc., other factors have and will contribute to high insurance rates in Colorado. Previous losses from 2009 and 2011 haven’t helped. Insurance companies have and still have to deal with a bad economy. This ultimately leads to poor return on investment for insurance companies. Insurance fraud spikes during bad economies. Also people who haven fallen of the books, due to losing their homes during the recession, doesn’t help neither

All in all, I hate to be bad news bears, but home insurance rates are going up again, in Colorado. This going to effect people across the board, including people who haven’t filed a claim in their life. Consumers can try to keep their insurance rates by shopping around. In this process, please consider us. We are independent insurance agents that represent multiple companies. We can also help out people who are going to be non-renwed due to losses.

Thanks for reading.

Mark A. Schneider- (Owner/Partner/Agent)