Repeated dropped homeowner’s insurance in the foothills of Colorado Jean Bouchard asked 1 month ago
Repeated dropped homeowner’s insurance in the foothills of Colorado

I live in the foothills of Colorado and my homeowner’s insurance keeps getting dropped just after getting instated by a new insurer. Apparently they can insure but only for “one term.”  It seems that a “term” is around two months or so. Is anyone else experiencing these short periods of being insured and have you had luck getting insured for longer than two or so months before getting dropped again?

1 Answers
John Putnam John Putnam Expert answered 4 weeks ago
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Hi Jean,

What you’re describing has unfortunately become more common in parts of Colorado, especially for homes located in the foothills or in the Wildland Urban Interface (WUI) where wildfire risk is higher. In many cases, insurers issue a new policy and then cancel or non-renew it after reviewing inspection results or wildfire risk data.

If you receive a cancellation or nonrenewal notice, there are a few steps you can take:

  1. Ask the insurer for the specific reason for the decision.

    Contact your agent or the company listed on the notice and ask for details about why the policy was canceled or nonrenewed. You can also request copies of any inspection reports, risk scores, or mapping data they relied on. Ask whether providing additional information about the property or mitigation efforts could lead the company to reconsider.

  2. Document your communications and timelines.

    Be sure to keep written records of your conversations with the insurer or agent and pay close attention to any deadlines related to the cancellation or appeal process.

  3. Work with an independent insurance agent.

    If your current agent represents only one insurer, consider contacting an independent agent who works with multiple companies. They may have access to insurers with different underwriting criteria and may also be familiar with carriers that specialize in homes located in higher wildfire-risk areas.

  4. Ask about specialty or surplus insurers if needed.

    Some homes in wildfire-prone areas are insured through specialty or surplus insurers that focus on properties with higher catastrophe exposure. These policies can differ from traditional homeowners policies, so it’s important to review the coverage carefully.

  5. Consider the Colorado FAIR Plan if other options are not available. 

    If you are unable to obtain coverage through traditional insurers, a licensed agent can request a quote from the Colorado FAIR Plan, which serves as the state’s insurer of last resort. These policies often cost more and may provide more limited coverage, but they can help ensure you maintain at least basic protection.

For homeowners in wildfire-exposed areas, insurers are increasingly looking at defensible space and other mitigation efforts around the home. Steps such as reducing vegetation close to structures or improving fire resistance can sometimes improve insurability. In many communities, wildfire risk is also influenced by surrounding properties, so mitigation efforts often work best when neighbors and communities participate as well.

Colorado regulators are also working on rules intended to improve transparency around insurer underwriting decisions and to encourage mitigation efforts. These changes are expected to help homeowners better understand what steps may improve their chances of obtaining or keeping coverage.

UP offers this publication that’s on point:

https://uphelp.org/buying-tips/dropped-by-your-home-insurer-information-for-colorado-residents/

We hope this information is helpful as you work through your options.

Best, John