Report: 64 percent of Fourmile fire victims underinsured

Denver Post

A new survey shows that nearly two-thirds [2] of victims of last year’s Fourmile Canyon wildfire were underinsured by more than $200,000.
The survey, conducted by United Policyholders [3], included responses from 51 residents who said their home was destroyed and seven who said their property was damaged. Overall, the fire destroyed 169 structures. Many victims are still dealing with insurance claims [4].
Key findings from the survey:
64% of respondents reported being underinsured on their dwelling by an average of over $200,000
36% have not yet reached a settlement with their insurance [5] company on the dwelling portion of their claim
35% will run out of “Additional Living Expense” benefits before they rebuild/replace their home.
57% reported being underinsured on their personal property by an average of over $130,000
43% do not believe a fair value was placed on their possessions
65% reported they received lowball estimates from their insurance company.
Most of the complaints filed [6] by Fourmile victims with the Colorado Division of Insurance deal with disputes over estimates for home-replacement costs and valuation of personal items.

The information presented in this publication is for general informational purposes and is not a substitute for legal advice. If you have a specific legal issue or problem, United Policyholders recommends that you consult with an attorney. Guidance on hiring professional help can be found in the “Find Help” section of United Policyholders does not sell insurance or certify, endorse or warrant any of the insurance products, vendors, or professionals identified on our website.

Date: February 29, 2024