As wildfires rage in California, fueling a nationwide insurance crisis, Colorado is bracing for similar challenges. Skyrocketing insurance premiums and policy cancellations due to wildfire risk are becoming increasingly common, prompting calls for legislative action and innovative solutions to mitigate the growing threat.
As wildfires continue to burn in California, igniting an insurance crisis, Colorado is starting to feel the heat. Last summer, John Wright, a Silverton resident who has lived in his home for decades, received a letter from his insurance carrier informing him of non-renewal, citing 'greater than average brush fire exposure.' Wright isn't alone in his predicament.
He shares his experience with many Coloradans across the state who are grappling with soaring insurance premiums and policy cancellations due to heightened wildfire risks. \ 'We're not at a crisis point yet, but we're getting there,' said Carole Walker, a spokesperson for the insurance industry, emphasizing the inevitability of another wildfire disaster in Colorado. 'It's not if, but when.' While the fires in California won't directly impact premiums in Colorado, the ripple effect is undeniable. This creates significant challenges with 'reinsurance,' the insurance that insurance companies purchase to protect themselves from catastrophic events. Walker predicts unprecedented problems in the industry as a result. \ Skyrocketing insurance costs were a key focus of Gov. Jared Polis' State of the State address last week, prompting calls for reforms. 'We need to start somewhere, and we need to start now,' said Polis. Several legislative proposals are already underway. One bill aims to compel insurers to provide homeowners, communities, and the state with more detailed information regarding the risk modeling used to assess wildfire scores and outline mitigation strategies. 'We want insurance companies to communicate clearly what we're doing right and what they expect us to do,' stated Rep. Brianna Titone, D-Arvada, a co-sponsor of the bill. 'This way, we can be on the same page and work together to reduce the risks.' Another measure proposes a state-run program to offset losses incurred in major disasters, such as the Marshall Fire. 'It's crucial that when we face a catastrophic loss, which can be hard to predict, we have state mechanisms in place to alleviate the financial burden on homeowners and insurance companies,' explained Rep. Kyle Brown, D-Louisville.
WILDFIRE INSURANCE COLORADO CRISIS REINSURANCE LEGISLATION GOVERNOR PREMIUMS DISASTERS
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