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….

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