As they watch the LA fires, some Coloradans see their insurance policies not renewed over fire risk – 9News.com KUSA
Next up in 5Example video title will go here for this videoNext up in 5Example video title will go here for this videoJEFFERSON COUNTY, Colo — This week a Jefferson County woman’s Nextdoor post about a cancelled insurance policy prompted several others in her community to share their story.The woman told Steve On Your Side she recently got a letter stating the Farmer’s Insurance policy she’s held for 40 years would end in March. The letter said “the determination was made that this property exceeds our desired risk threshold. We considered the potential exposure of the insured property to natural and/or catastrophic losses from wildfire in making this determination.”The post prompted more than 140 comments from neighbors – including Roger Nickell, who got a similar letter from Farmer’s late last year.“It is very unnerving,” Nickell told Steve On Your Side. “I called my agent. He said he would look for options. I haven’t heard back from him on those options, so I’m kind of on my own.”Nickell said he’s lived in the home in the Lookout Mountain area for four years. The home, which was built in 2009, is built with fire resistant materials and the closest tree is 75 feet away, according to Nickell, who measured after being prompted by his insurance company.He said in his previous insurance renewal, his annual premium jumped from $8,500 to $13,500.“Our premium was well over $1,000-a-month, which when I got married in 1992 that’s what we paid for rent for the whole property,” Nickell said. “Now I pay it in insurance.”Up the road from Nickell, Keith and Zara Swingle just remodeled a home they built a few years ago – a home they call their dream home. The couple commented on the Nextdoor post as they are now on their third insurance company in as many years.“We ended up getting Traveler’s and that lasted a year-ish, and were canceled just because where the house is,” Keith Swingle said. “And then Safeco canceled us about a year in as well.”The latest cancellation happened on Christmas Eve, after Swingle said Safeco informed him the company had taken aerial photos of his property and determined it could no longer insure the property.The determination was a surprise after the couple spent a significant amount of money and time ensuring that the renovation included elements to make the home fire-safe. The Swingles installed fire resistant siding, a metal roof and fire safe deck materials per Jefferson County’s mountain building codes. They also cleared trees off the property that were too close to the house.“Our former neighbor was retired from the Bureau of Land Management,” Swingle said. “He looked at our house and said you guys are good with fire mitigation here. But clearly that doesn’t hold any sway.”The Swingles were able to find a new insurance provider in USAA, but they still feel a bit uneasy after all of the change they’ve experienced in the last few years and stories they’ve heard from neighbors.“What’s to say they won’t come back to us later and tell us the same thing,” Zara Swingle said. “I mean, you built this dream house that now is kind of stressful knowing that one day our insurance policy could be pulled.”“You have to have insurance if you have a mortgage. So if you can’t find somebody to insure you, then I don’t know.”At the end of the 2023 legislative session, Gov. Jared Polis, D-Colorado, signed a law establishing an insurance plan of last resort – that will be known as the FAIR Plan. The plan was specifically created to help homeowners in situations where insurance companies may deny coverage due to risk factors like location, the property’s claim history or exposure to natural risk like wildfires.The FAIR Plan will only offer basic coverage, maxing out at $750,000, for homeowners who have been turned down by at least three qualified insurance plans and can’t find insurance on the traditional market. The plan will include high premiums and not many options.Coloradans struggling with insurance premiums can find help through the Division of Insurance’s Property Insurance Toolkit.Contact Steve On Your Side with consumer problems by e-mailing us or filling out our contact form.Notifications can be turned off anytime in the browser settings.
