Many Colorado homeowners are underinsured − here’s what to do before the next fire

Colorado Homeowners Left Reeling from Marshall Fire: Take Action Now to Avoid Financial Fallout

A recent study by economists revealed that many Colorado homeowners are woefully underinsured, leaving them vulnerable to financial ruin in the event of a disaster. The research examined 3,089 policies from 14 major insurers held by people affected by the devastating Marshall Fire, which burned over 1,000 houses in suburban Boulder County.

According to the study, an astonishing 74% of homeowners were underinsured, with 36% holding policies that covered less than 75% of the rebuild cost. This staggering number holds true even for households with incomes above $180,000, where 72% held insufficient coverage.

So, what's driving this trend? The researchers point to rising insurance premiums in Colorado, which have increased by nearly 60% over the past five years due to mounting losses from wildfires, hail, and other disasters. This trend is not unique to Colorado but reflects a broader national reassessment of risks.

The study found that credit scores and mortgage debt amounts were unrelated to how underinsured people were, highlighting the need for homeowners to take proactive steps to ensure adequate coverage.

When shopping for insurance, many homeowners focus on the total cost of the policy rather than the actual coverage level. However, this approach can leave them vulnerable to underinsurance. In fact, if shoppers compared insurer quotes for the same coverage amount, they would gain around $290 per year in value, roughly 10% of the average annual homeowners insurance premium.

The researchers stress that underinsurance isn't just an abstract problem; it leaves real gaps in rebuilding and can even prompt families to sell their properties and move away. In contrast, if all underinsured households had been fully insured, 25.4% of homeowners would have filed for reconstruction permits within a year of the fire, compared to the actual 18.8%.

So, what can Colorado homeowners do now to avoid financial fallout? Here are some practical steps:

1. **Request side-by-side comparisons** when getting quotes or renewing policies to ensure you're not underinsuring in pursuit of a lower premium.
2. **Revisit limits annually**, especially after renovations and big economic changes, to reflect rising construction costs.
3. **Consider insurer reputation and local presence**, as companies with deeper roots in the community are less likely to underinsure.

By taking these steps, homeowners can ensure their coverage keeps pace with rising risks and rebuilding costs, helping them avoid financial ruin in the event of a disaster.

Colorado homeowners need to step up their insurance game ASAP ! 74% of people are underinsured? That's crazy! You'd think that with income above $180k, folks would have more wiggle room, but nope! Rising premiums in CO (60% increase in 5 yrs) must be driving the trend. People need to stop focusing on total policy cost and start checking coverage levels . Even a $290/year difference can make a big difference. Families aren't just losing homes, they're selling everything and moving away because of underinsurance . Take these steps: request side-by-side comparisons, revisit limits annually, and check insurer rep & local presence . Let's get Colorado homeowners insured for real!

Ugh, 74% of Colorado homeowners are underinsured lol what is going on here? I mean, I get that insurance premiums have gone up, but who can afford to just 'take action' and review their policies every year? Not me, that's for sure. And don't even get me started on the idea of shopping around for quotes - like I haven't spent enough time on those websites already, can't they just give me a decent rate to start with?

And what's with the 'reputation and local presence' thing? Are homeowners really supposed to do some kind of research on their insurance company just because it's in Colorado? I mean, I guess if you want to sell your property after a disaster, that might be a consideration, but for most people, just getting enough coverage seems like the bare minimum.

I feel like this is just another example of how insurance companies are always looking out for their own interests and not really caring about the people who have to deal with these disasters.

I'm so worried about people who got affected by that Marshall Fire in Colorado . It's crazy how many of them are underinsured - like 74%! That's almost three-quarters of people. If you're one of them, it's super important to get your insurance policies checked ASAP . They're saying that rising insurance premiums have nothing to do with how much coverage you need, which is weird .

The thing is, most people just focus on the price of the policy and not the actual coverage amount . But if you compare quotes from different insurers for the same coverage, you could save like $290 per year - that's 10% of your average insurance premium!

It's also weird that some people are selling their properties because they can't afford to rebuild after a disaster. Like, what even is the point of owning a house if you can't protect it? Anyway, the researchers are saying that if everyone got fully insured, more people would be able to file for reconstruction permits, and less families would have to leave their homes.

So yeah, take action now! Get your insurance checked out, and make sure you're not underinsuring. It's better safe than sorry .

I'm telling you, insurance companies should just chill on raising premiums and make sure people have decent coverage from the start . This whole "you need to shop around" thing is just a headache for homeowners. And don't even get me started on credit scores not mattering - what's next? Just because you're good with money, doesn't mean you won't end up broke after a fire . And those numbers are crazy high... 74% underinsured? That's just wrong . People should be prioritizing coverage over cheap premiums for once .

I'm literally shook by these stats ! So 74% of Colorado homeowners are underinsured? That's insane! And it's not just high-income households, either - 72% of those making over $180k were underinsured too . The fact that credit scores and mortgage debt amounts didn't matter is wild . I mean, who knew insurance shopping was so complex?

According to the study, if you compare quotes for the same coverage amount, you can save around $290 per year in value - that's like a whole extra latte every month ️. And it's not just about saving money, either - underinsurance can leave families with huge gaps in rebuilding costs and even force them to sell their homes .

So, what's driving this trend? Rising insurance premiums are the clear culprit here - 60% over the past five years is no joke . And it's not just Colorado, either - I've seen similar trends in other disaster-prone areas nationwide.

The good news is that there are steps you can take to avoid financial fallout if you're underinsured. Request side-by-side comparisons when shopping for insurance, revisit limits annually, and consider a reputable insurer with local roots . It's time for homeowners to take control of their coverage and avoid being left high and dry in the face of disaster .

**Average Annual Homeowners Insurance Premium:** $1,400 ( source: National Association of Insurance Commissioners)
**Percentage of Homes with Fire Damage:** 2.6% (source: US Census Bureau)
**Number of Homes Destroyed by Wildfires in 2020:** Over 10,000 (source: National Interagency Coordination Center)

I'm so bummed about what's happening in Colorado rn . This Marshall Fire has been devastating & it's heartbreaking to think about ppl struggling to rebuild due to lack of insurance . I mean, 74% underinsured? That's crazy! It's not just about the money, it's about stability & security for families . We gotta make sure we're prepared for the unexpected & that our homes are protected against natural disasters . Shopping around for insurance & comparing quotes can make a huge difference . It's time to take control of our finances & future !

I'm so worried about those Colorado homeowners who got affected by the Marshall Fire . I mean, 74% underinsured? That's insane! It's like they're playing with fire (literally) and not knowing the risks. Rising insurance premiums aren't helping either. Like, what even is that?

I'm sure it has something to do with people focusing on the total cost of policies instead of coverage levels. I mean, who doesn't love a good deal? But no, seriously, it's all about being proactive and shopping around for better insurance deals. Side-by-side comparisons are key!

I feel bad that they're even having to think about rebuilding their homes after disasters like this. It's just so stressful and overwhelming. And if only 25.4% would have filed for reconstruction permits... yikes!

Anyway, I hope those homeowners can take these steps and stay ahead of the game. I mean, no one wants to go through that kind of financial fallout .

Dude, have you heard about this Marshall Fire in Colorado? It's like, whoa... 1,000 houses burned down ! And now, people are realizing they're not insured enough . Like, what were they thinking? Not having enough insurance is like not having a fire extinguisher when your kitchen's on fire !

So, the experts say we need to take action before it's too late . They're saying we should compare quotes side by side and check our limits every year . It's like, don't be that person who buys a super cheap policy just because it looks cool . Trust me, you'll be the one crying when disaster strikes .

I mean, I'm no expert, but even I know that insurance is like, super important . Don't be underinsured, dude! It's not worth risking your house and livelihood . Take control of your finances and get those policies sorted out . Your future self (and your wallet) will thank you

Colorado homeowners need to get their finances in order ASAP! ️ The Marshall Fire was devastating, but many people are still reeling from the costs . It's crazy that 74% of homeowners are underinsured ! Rising insurance premiums are a major contributor .

They need to start shopping around and comparing quotes side by side . It's not just about getting the cheapest policy, it's about having enough coverage . And don't even get me started on credit scores and mortgage debt... who cares about that when you're facing financial disaster ! Just focus on getting a solid policy with adequate coverage .

The researchers are saying 25.4% more people would have filed for reconstruction permits if they were fully insured ! That's huge . So, what's holding people back? Time to take action and protect your home and finances . Request side-by-side comparisons, revisit limits annually, and choose an insurer with a good reputation in the community . Get it together, Colorado homeowners!

omg u gotta be careful w/ ur insurance policy especially if ur living in areas prone 2 natural disasters like colorado i just read this study where like 74% of homeowners r underinsured lol what's going on?! rising insurance premiums are def a factor but also these ppl need 2 prioritize getting the right coverage 4 themselfs, not just cuz its cheaper they should be checking out different insurers & comparing quotes side by side, and revisiting their limits every year so dey don't get caught off guard when something happens

omg u guys its like super crazy that 74% of colorado homeowners r woefully underinsured !! i know ppl in boulder county who lost their homes and they're still trying to figure out how they're gonna rebuild. its not just the $$$ either, its like they might have to sell their property lol. anyway, i was looking into insurance quotes 4 my own home and it seems that most ppl r making a big mistake by not comparin prices if u wanna avoid financial fallout, u gotta do ur research and get those side-by-side comparisons done ASAP

I'm telling you, this is just the tip of the iceberg . They're messing with our minds, distracting us from the real issues while they're getting richer off our insurance premiums . Think about it, 74% of homeowners are underinsured? That's not a coincidence, that's a plan . The government's just giving them more excuses to raise their rates and push people around .

And don't even get me started on these insurers, they're like sharks, preying on vulnerable people who can't afford to pay more . And what's with the 'reputation' factor? That's just a fancy way of saying they're trying to control us through their 'trust' and 'loyalty' .

You need to wake up, people! This isn't about taking care of your home or family, it's about being controlled by these giant corporations. Take control of your insurance policy, do your research, don't just blindly trust them . And if you can't even be bothered to do that, then maybe you shouldn't be buying their policies in the first place .

I know some people will say 'oh but what about the cost?' or 'what about the convenience?' Convenience?! Are you kidding me? The only thing they're giving you is a sense of security through a false narrative . Don't fall for it, stay vigilant!

I'm so worried about those Colorado homeowners . Underinsurance is such a huge issue here, it's crazy that 74% are not covered enough! I mean, who wants to risk losing everything they've worked for? Rising insurance premiums make it even harder, but at least the study shows that credit scores and mortgage debt aren't the main culprits - it's just people not looking closely enough at their policies . It's so important to do a side-by-side comparison when shopping around for quotes, like $290 per year is a big deal! And revisiting limits every year after major changes can make all the difference too. I hope more homeowners take these steps and avoid financial fallout .

the stats on colorado homeowners being super underinsured are just crazy like 74% of people aren't even getting enough coverage for their homes which is insane considering how expensive it is to rebuild after a disaster. and its not just the amount of insurance that matters, but also the type of coverage you get - like, did those insurers even consider the fact that these houses are in high-fire-risk areas?

Colorados homeowners gotta step up their insurance game ASAP Those 74% underinsured numbers are straight fire Can't stress enough how crucial it is to review policies every year, especially after major renovations or income changes. Don't fall for cheaper quotes that leave you exposed Just compare insurer quotes side-by-side and revisit limits annually Companies with a strong local presence tend to be more reliable

I feel for those Colorado homeowners who got caught off guard by the Marshall Fire . It's crazy to think that 74% of people were underinsured ! Rising insurance premiums aren't exactly helping, either. I mean, who can afford to just throw more money at their mortgage payments without knowing they're fully protected?

It's like we're all in this together, but if you're not careful, the gap between what you pay for insurance and what you actually need can be huge . I get why people focus on the total cost of a policy, but that's just not enough – you've got to think about the actual coverage level .

The part that really hit me was how much of a difference it makes if you do your research and shop around . If everyone just did their due diligence, I bet we'd see some amazing savings . And those extra 10% in value? That adds up fast !

Ugh I'm still trying to wrap my head around those Marshall Fire numbers 74% of Colorado homeowners are underinsured?! That's crazy! I mean, I knew insurance premiums were high, but I didn't realize it was that bad . It makes total sense why people would be woefully unprepared for a disaster like that.

I'm also kinda bummed to hear that credit scores and mortgage debt aren't factors in how underinsured people are . That just means there's gotta be some other, deeper issue at play here. But hey, I guess taking proactive steps now is the way forward . Requesting side-by-side comparisons when getting quotes, revisiting limits annually... sounds like good advice to me .

It's wild that 25.4% of homeowners would have filed for reconstruction permits if they were fully insured . That just shows how far underinsured people can fall behind . But hey, at least there's hope now! If we all just take these steps and make insurance our priority, maybe we can prevent some of this financial fallout .

I'm so worried about all those Colorado homeowners . The fact that 74% of them are underinsured is just insane! I mean, you think you're getting a good deal on your insurance, but really you're leaving yourself vulnerable to financial ruin if something bad happens . And it's not like they have any idea what's going on - they're just focused on the total cost of the policy, not the actual coverage level . I would definitely do some research and request side-by-side comparisons when getting quotes or renewing policies... that extra $290 a year might seem small, but it could save you so much in the long run . And if someone's been hit by a disaster like the Marshall Fire, they need to get their insurance limits revised ASAP . It's just common sense, right?

The Marshall Fire was just another reminder that we're all living on borrowed time . I mean, 74% of Colorado homeowners are underinsured? That's wild, right? And it's not like they can just fix the problem by increasing their premiums, because insurance companies are already hiking those up by 60% in the last five years .

I guess what bothers me is that people are still gonna get caught off guard when disaster hits. Like, how many more houses do we need to burn down before folks realize they're not prepared? It's all about the numbers game, I guess: if you compare insurer quotes side-by-side, you can save $290 a year in premiums .

But let's be real, it's not just about saving money. When people don't have adequate coverage, it can literally mean the difference between staying and going – and that's a whole lot of families on the move . So yeah, I guess taking proactive steps to ensure you're insured is kinda important if you want to avoid financial fallout .