Insurance policies

Insurance policies are insufficient for Colorado wildfire victims

BOULDER COUNTY, Colo. (KDVR) – As the rebuilding process begins in Boulder County, thousands of people wonder how they will actually pay for it all when many insurance policies do not cover the full amount of costs construction and replacement.

The Colorado Division of Insurance says Problem Solvers insurance companies are required to offer extended coverage of 20% of the lodging limit in homeowners’ policies, but some homeowners have said that’s not enough.

Computer scientist Peter Kovari’s house was destroyed by fire.

“I thought this was going to be our forever home, but it’s not our forever home anymore,” he said.

Kovari said adding to the devastation is the fact that the money he received from his insurance company this week will not be enough to cover the cost of reconstruction due to a difference of more than 300,000 $. Friends have created a GoFundMe page to help you. Kovari said he will try to find a way to provide a forever home for his family, but it will be difficult.

Advertising

Dominick Mancine said his 20-year-old home was set on fire in the blaze. His policy won’t cover the full amount he needs, leaving him to consider waiting more than a year to return to the block he’s been looking forward to returning home to for so long.

“We pay for insurance to cover us in an event like this. I would have gone my whole life without needing to use it,” he said.

What you need to know about home insurance policies

Insurance adjusters tell problem solvers that homeowners have the option of having the costs assessed by an outside expert. Some policies include clauses that provide additional protection against rising costs.

“Most companies have what’s called an inflation bar built in and they can increase your housing limit year after year, and it can be anywhere from 10% all the way up to 25%,” said Sarah Lucero of Risk. Management Partners. Lucero stressed that all homeowners should regularly reassess their property, especially if there are home improvements, and ensure their coverage is up to date.

Homeowners can contact the Colorado Division of Insurance to dispute ratings or obtain information. Staff members are available at the Disaster Assistance Center or you can contact the office at 303-894-7490 or [email protected].

The state’s insurance division said if police payments aren’t received, a lawsuit can be filed. Everyone affected by the Boulder County fires and straight-line winds should submit a request to the Federal Emergency Management Agency for individual assistance. The Small Business Administration offers low-interest loans to help cover insurance gaps.