Bob Wolff thought he did everything right when mitigating the fire danger around his home at Animas Air Park ahead of what officials expect could be an active wildfire season.

The mitigation work he has been doing – namely removing flammable material from around his home and thinning undergrowth to create defenses against potential wildfires – was to keep his home insured.

Insurance rates have more than doubled in Colorado since 2018, according to Colorado State University’s Regional Economic Development Institute. Additionally, insurance policy nonrenewal rates grew from 0.34% in 2018 to 1.14% in 2022.

“Notably, these nonrenewal rates are higher in areas more likely to experience costly hazard events and in areas with fast premium growth,” the report said.

The report found that La Plata County faces high risk for natural hazards – like wildfires – and a medium risk of insurance nonrenewal on the Federal Emergency Management Agency’s National Risk Index.

Wolff talked to his insurance provider, The Hartford, about how to make sure his home remained insured. The agency sent an underwriter in the fall to take photos and provide additional input on how he should mitigate his house. With the underwriter’s assessment, the company gave Wolff a mitigation deadline of April 20.

Wolff spent $7,000 mitigating the property and met the deadline. Then, last week the company told him it was dropping his coverage April 20, even after he worked to meet the mitigation requirements it outlined.

“I’ve spent a boatload of money now, because I was all in,” Wolff said. “I’ve cleaned this place up only to get thrown under the bus.”

Wildfires and Insurance

Wolff is among many La Plata County residents worried about the upcoming wildfire season and whether they can keep their homes insured. Based on a non-scientific Durango Herald survey, most of the 58 respondents described feeling “worried,” “fearful,” “anxious” and “frustrated” about the upcoming wildfire season.

The survey also asked respondents whether their insurance rates had increased in recent years. Of the respondents, 94% said their rates had increased, reflecting the statewide trend.

Ricky King, owner of Cortez-based Ricky King Insurance Agency, said insurance companies rely on public protection classification ratings, determined by organizations like the Insurance Services Offices, to help determine how much homeowners pay.

The ISO rating analyzes a community’s fire protection capabilities, assigning a public protection class from 1 to 10 to help insurers determine property insurance premiums, King said.

Those ISO ratings incorporate water access, emergency services, fire department resources and community wildfire mitigation efforts, which influence how much premiums cost, according to Verisk, the company that administers ISO ratings.

Communities with a Class 1 rating typically have lower premiums than those with a Class 10 rating. According to the Durango Fire Protection District’s website, the district has a class 4 ISO rating.

Insurance rates are rising in large part because of the increasing risk of wildfires. But King said they are also going up because building materials and labor are more expensive.

“It’s part of where we live, and we have to adapt to that,” King said.

And when a homeowner loss does occur – say a house burns down – the insurance claim is huge compared to health or car insurance claims.

That, and the fact that homes contain irreplaceable personal items, is a reason to take every precaution to protect a home before having to file a claim.

“You want to mitigate any potential loss, because when a homeowner claim occurs, it’s pretty catastrophic,” King said.

Every base covered

Working to clear flammable material from around a structure in a preemptive effort to reduce wildfire risk has been shown to enhance safety and strengthen eligibility for insurance and help maintain coverage as risks continue to rise, according to Fire Adapted Colorado.

And, according to the Durango Herald survey results, roughly 95% of respondents said they do fire mitigation on their property.

But, while 75% of respondents said they have spoken with their insurance provider about fire mitigation, only 39% said they had done a home assessment with a local fire department or nonprofit.

Alex Graff of Wildfire Adapted Partnerships said getting assessed by both an insurance agency and a fire department or nonprofit like his is a good way to cover all bases when it comes to fire mitigation.

“What I’m telling people at this point is keeping your insurance is a utilitarian endeavor,” Graff said. “Sign up for a site assessment and see if everything is really to that super high level, because that’s what it requires.”

Site assessments are free. They also provide homeowners with mitigation tips in adherence to the Colorado State Forest Service’s Home Ignition Zone guidelines, Graff said.

“Durango Fire was super great at pointing things out, photographing them and giving them to me, and they weren’t oppressive,” Wolff said of his home assessment.

He said the department gave him clear direction on how to make his home safer.

When it comes to something as important as a home, taking every precaution to ensure it is both insurable and fortified against wildfires is especially important this year.

Resources are available for homeowners who are worried or unsure about obtaining coverage. The Colorado Department of Regulatory Agencies monitors insurance premiums in every Colorado county, which can be viewed online at the Division of Insurance’s premium comparison reports website.

Additionally, if a homeowner is denied coverage by three insurers, they may qualify for a Fair Access to Insurance Requirements plan – state-mandated insurance that gives people basic coverage when no other option is available, according to coloradofairplan.com.

While FAIR plans typically have higher premiums and less coverage, they remain an option for home insurance. However, they are generally considered a last resort for homeowners in areas with extreme wildfire risk.

Wolff is still working to make sure his home is both wildfire ready and insured. Currently, he talking to Allstate and Farmers, he said, as well as working to clear away flammable material and harden his home in line with his home assessment.

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