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Wildfires in Colorado: A Growing Concern for Home & Ranch Owners

Wildfires in Colorado: A Growing Concern for Home & Ranch Owners

Colorado, often praised for its stunning landscapes and outdoor recreational opportunities, is grappling with an escalating wildfire problem that's drawing comparisons to its West Coast counterpart, California. As wildfires become more frequent and destructive in the Centennial State, homeowners in fire-prone areas of western Colorado are facing a mounting crisis. This article explores the increasing threat of wildfires, their impact on insurance rates, and what it means for consumers living in high-risk areas.

The Growing Wildfire Threat in Colorado

Wildfires in Colorado are not a new phenomenon, but their frequency, intensity, and destructiveness have been on the rise in recent years. The primary factors contributing to this problem include climate change, prolonged droughts, and urban expansion into wildfire-prone regions. Colorado's climate, with its dry conditions and strong winds, makes it susceptible to rapid fire spread and difficult firefighting conditions.

Comparison to California

The comparison between Colorado and California's wildfire situations is becoming more apparent. While California has long been known for its wildfire challenges, Colorado is now experiencing a similar trend. Both states are characterized by extensive wildland-urban interface areas, where human communities and natural landscapes intersect. This proximity to wildlands increases the risk of wildfires spreading to homes and properties.

Timeline of Insurance Carrier Exodus and Rising Rates

One of the most pressing issues arising from the increased wildfire risk is the dwindling number of insurance carriers willing to underwrite properties in fire-prone areas. Here's a timeline illustrating the situation in Colorado:

  1. Pre-2010s: Insurance carriers generally offered coverage to Home & Ranch Owners in fire-prone areas at affordable rates.
  2. Early 2010s: Major wildfires, such as the High Park Fire (2012) and the Waldo Canyon Fire (2012), raised awareness of the wildfire threat in Colorado. Insurance companies began reassessing their policies and pricing.
  3. Mid-2010s: As wildfires continued to grow in frequency and size, insurance carriers started reducing coverage options and raising premiums for homeowners in high-risk areas.
  4. Late 2010s to Present: The trend of reduced coverage and higher premiums has accelerated. Some home & ranch owners have found it increasingly difficult to secure insurance coverage at any cost. This has created a growing gap in insurance availability, particularly in central & western Colorado.

Impact on Consumers

The consequences of the insurance crisis are significant for homeowners in fire-prone areas:

  1. Affordability: Many homeowners are struggling to afford insurance premiums, leading to tough choices about whether to insure their properties or risk going without coverage.
  2. Risk Exposure: Homes without insurance coverage face substantial financial risk if they are damaged or destroyed in a wildfire. This can result in financial ruin for affected families.
  3. Mortgage Hurdles: Mortgage lenders often require homeowners to maintain insurance coverage. The lack of insurance options can hinder home purchases and refinancing, limiting housing market activity in high-risk areas.
  4. Community Resilience: The inability to secure insurance can hamper community resilience efforts, as funding for fire mitigation and prevention measures may be scarce.

What Can Be Done?

Addressing the wildfire insurance crisis in Colorado requires a multifaceted approach:

  1. Government Intervention: State and local governments can work to implement policies that incentivize wildfire mitigation efforts, such as creating defensible spaces around homes and investing in firefighting resources.
  2. Insurance Reform: Collaboration between insurance companies, policymakers, and home & ranch owners is essential to develop fair and sustainable insurance solutions for fire-prone areas.  In May of 2023, Colorado passed a bill to start a "FAIR" plan for residents that cannot obtain insurance through normal markets, this program will become available in 2024.
  3. Home & Ranch Owner Responsibility:  Owners will need to take measures to create defensible areas around their houses and buildings to be able to make insurers more comfortable with insuring their property.


As wildfires continue to threaten communities in western Colorado, the insurance crisis looms large, putting home & ranch owners in a precarious position. The situation demands swift and strategic action from all stakeholders to find viable solutions that protect homes, properties, and the financial well-being of those living in fire-prone regions. Mitigating wildfire risks and ensuring affordable insurance coverage are paramount to the long-term resilience of these communities in the face of an escalating wildfire threat.  Whatever your circumstances are for your property, whether you are in town or out in the brush zones Town and Country Insurance can help you with your insurance, reach out to us today for a free assessment and quotes from multiple insurance companies.