‘I’m not going to be able to afford my house anymore’

Homeowners in several states across the U.S. are facing skyrocketing insurance rates due to concerns over extreme weather events, and residents in Boulder, Colorado, are the latest to feel the impact.

What’s happening?

As explained by Boulder Reporting Lab, wildfires becoming a year-round threat in Boulder County has caused residents in mountain communities and other areas to have trouble finding home insurance due to the flammable landscape surrounding them. 

For example, Gunbarrel resident Victor Lopez told Boulder Reporting Lab that his home insurance started at $1,000 a year in 2018 and has since increased to $2,500 a year. After seeking lower rates from other insurance companies, he was met with even higher costs, some of which were close to $4,000 annually.

“I’m not sure at what point it’s going to plateau,” Lopez said. “If these increases continue, I’m not going to be able to afford my house anymore.”

The New York Times listed Colorado as the fourth-most expensive state for home insurance earlier this summer.

“Insurance companies are not wanting to take on that risk anymore,” Sara Wright, an agency owner for Farmers Insurance in Boulder, told Boulder Reporting Lab.

Why is this important?

“Climate change-fueled disasters are driving up homeowners insurance costs in cities and towns nationwide,” Boulder Reporting Lab noted. 

Along with Colorado, the Times named Florida, New York, Louisiana, and Hawaii as the other most expensive states for home insurance.

The increasing frequency and intensity of extreme weather events due to rising global temperatures make it difficult for insurers to keep up with the costs of repairs and claims. Wright told Boulder Reporting Lab that the high fire risk of Boulder’s 80302 zip code is the primary factor in increasing insurance prices, and because of this, Farmers Insurance has decided it will not renew policies there and in other mountainous areas in 2025.

“I look at California and there are whole swaths where you can’t get insurance,” Boulder resident Don Dulchinos told Boulder Reporting Lab. “I’d hate to think that’s our future, but it could be.”

Companies like State Farm have stopped accepting new applicants in California, and others are leaving high-risk areas altogether, forcing homeowners to resort to expensive government-run policies.

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What’s being done about this?

Janet Ruiz, a director of strategic communication for the Insurance Information Institute, told Boulder Reporting Lab that homeowners who take the necessary steps to reduce wildfire risks around their properties are likely to see lower insurance rates.

“There are a lot of mitigation efforts being taken by communities and by individuals, and that is really going to be key moving forward,” Ruiz said.

However, insurers are still considering Boulder homes too risky to cover. Last year, Colorado established the Fair Access to Insurance Requirements Plan to provide insurance for homeowners and businesses that have struggled to secure coverage. The plan could start offering coverage as early as 2025, but it was noted that it has a maximum of $750,000, well below Boulder’s average home price of nearly $1 million.

Still, residents are concerned about uncertain futures, as the rising costs could force them out of their homes sooner than expected.

“Even apartments in Boulder are really expensive, and every year they are increasing more and more,” Lopez said. “I am very worried that even after selling my house, I’m going to move to a smaller place to pay almost the same as I am paying right now. That is the nightmare I have.”

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