Two Year Survey Results – 2021 Marshall Fire, Boulder, Colorado
Read our Marshall Fire Two Year Survey Report and Summary Data.
Significant findings: This two year survey shows that despite the fact that a substantial number of those who lost homes were significantly underinsured, the vast majority of Marshall Fire Survivors are rebuilding. 93% of survey respondents who plan on rebuilding have applied for a permit. This is a very positive sign that recovery efforts are moving forward.
Additional notable survey findings are as follows: 39% of survivors who asked their insurers to extend their Additional (Temporary) Living Expense benefits beyond a 24 month policy limit were successful in getting the requested extensions. 15% of survey respondents reported that they received 100% of their personal property benefits without having to complete an itemized home inventory.
In terms of claim problems, 69% of survey respondents reported delays in getting answers from their insurance companies to questions related to their claims, and to phone calls and/or emails. This was a 10% increase from our 12 month survey. 64% of partial loss survey respondents reported their insurance company brought in experts they did not trust. 9% of total loss survey respondents reported this same problem. We attribute that to the fact that partial losses often involve a degree of subjectivity as to the extent of the damage that is not present on a total loss.
In light of consumer complaints and recent media reports related to property insurance marketplace conditions in the State of Colorado, the two year survey included a question that was not part of our 6 and 12 month surveys. The question elicited whether the respondent was able to find insurance for their replacement home. 87% of survey respondents who replaced their homes by buying instead of rebuilding reported they were able to find insurance for their new home.
One Year Survey Results – 2021 Marshall Fire, Boulder, Colorado
Read our Marshall Wildfire One Year Survey Report and Summary Data
Significant Findings: The survey results show an overwhelming amount of underinsurance with 80% of survey respondents reporting that they do not have enough insurance to cover the cost of replacing or rebuilding their home. The data collected shows that the average amount survivors are underinsured by is $110/psf. Despite this, 83% of total loss survivors plan to rebuild, requiring funds from other sources besides their dwelling coverage. Legislation has been passed to address the underinsurance issue. While it is not retroactive, we will be monitoring its impact against the data collected in this survey. Another significant finding is there are significant disparities in the percentage of contents benefits survivors received without having to complete a home inventory.
6 Month Survey Results – 2021 Marshall Fire, Boulder, Colorado
Read our Marshall Wildfire 6 Month Survey Report and Summary Data
Significant findings: A substantial number of households are underinsured and do not have adequate dwelling insurance limits to cover the actual cost of replacing their destroyed assets. This is true despite the fact that the majority of surveyed households reported having “extended replacement cost coverage” which theoretically should have protected them from being underinsured. This finding is supported by the Marshall Fire Claims Data Analysis conducted by the Colorado Division of Insurance.
The survey results also show that 46% survey respondents have a dollar limit on Additional (Temporary) Living Expense benefits, despite the fact that Colorado law does not permit such limits, according to the Colorado Division of Insurance.
Another significant finding is that in the majority of cases, insurers are strictly enforcing their requirement that total loss victims provide detailed, itemized personal property inventories in order to collect policy benefits. In some cases, due to pressure from the Colorado Division of Insurance and United Policyholders, some insurers are relaxing that requirement for some claimants.
NOTE: Pursuant to a new CO law that applies to losses arising after January, 2022, insurers must offer policyholders the option of accepting 65% of their policy limits for personal property/contents in return for not having to prepare and submit an itemized inventory. Only 14% of survey respondents were offered that option.
