Home Insurance: Rocky Mountain PBS Report (Video)
- pinewoodlakewag
- Jan 17
- 2 min read
Updated: Jan 18
From Rocky Mountain PBS:
Homeowners in Colorado face difficult decisions when it comes to insuring their home. With increasing fires and more intensive hail, Rocky Mountain PBS and Colorado Public Radio look into the looming crisis — and what the state government is doing to address it.
Click here to watch the 26-minute video on YouTube:
Here is an AI summary of the video:
This video, titled "Undercovered: Colorado's Home Insurance Dilemma," produced by Rocky Mountain PBS and Colorado Public Radio, explores the escalating home insurance crisis in Colorado driven by climate-related disasters.
The Growing Insurance Crisis
Skyrocketing Rates: Between 2007 and 2024, Colorado’s home insurance rates increased by nearly 250%, roughly double the national average [07:46].
Dual Catastrophe State: Colorado is unique because it faces severe risks from both wildfires and hailstorms. Interestingly, hail damage accounts for roughly 60% to 70% of average premium costs in the state [09:45].
Market Pressure: Increasing construction costs for labor and lumber, combined with record-breaking catastrophes, have created a "perfect storm" that has made Colorado one of the most challenging insurance markets in a generation [08:20].
The Impact on Homeowners
Severely Underinsured: Following the 2021 Marshall Fire—the most destructive in state history—74% of victims found their insurance didn't cover the full cost of rebuilding [05:48]. Some families reported paying over $1 million out-of-pocket to return to their homes [04:32].
Insurance Deserts: Many insurance companies have stopped writing policies in specific "ineligible zip codes" or have pulled out of the state entirely, leaving homeowners with few options [14:38].
State and Individual Solutions
The FAIR Plan: As an insurer of last resort, Colorado established the FAIR Plan to provide bare-bones coverage for those deemed "uninsurable" by private companies [15:32]. However, these plans often have higher premiums and lower coverage limits [16:03].
Risk Mitigation: Programs like Wildfire Partners help homeowners protect their properties by clearing brush and creating "defensible space" [18:14]. In one community, all 13 homes that performed mitigation survived a wildfire, while five nearby homes that didn't were destroyed [21:02].
Legislative Action: New state laws require insurers to be more transparent about rebuilding costs and rate calculations [06:35]. There is also ongoing debate regarding state grants to help homeowners afford hail-resistant roofs [23:03].
Ultimately, the video highlights the difficult balance lawmakers must strike: regulating the industry to protect consumers while ensuring the market remains profitable enough for insurance companies to stay in the state.
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