Wildfires are an ongoing threat here in Colorado. With increased intensity and greater frequency, homeowners across the state must be prepared to navigate the complex insurance claims process if, in the unfortunate event, they experience wildfire damage to their property.
In this article, we’ll discuss the ins and outs of wildfire insurance claims in Colorado and what homeowners can do to ensure they receive adequate compensation and support during these extremely challenging times. Specifically, we’ll discuss:
- Common reasons for wildfire claim denials in Colorado
- Mistakes to avoid when filing a wildfire insurance claim in Colorado
- Steps you can take if your wildfire claim is denied or underpaid
- Tips for preparing your home for wildfire season
If you have questions or need immediate support for your wildfire insurance claim, contact our team of experienced insurance law attorneys at Kandell, Kandell & Petrie today.
Common Reasons for Denied Wildfire Insurance Claims in Colorado
Facing a wildfire is a terrifying experience for any Colorado homeowner. When disaster strikes, you rely on your insurance policy to provide financial protection and aid in rebuilding your life, yet this is not always the case. Here are some reasons your insurance company may try to deny your wildfire claim:
- Policy exclusions – Some insurance policies exclude coverage for wildfire-related damage. Review your policy to understand if any exclusions may apply to your coverage.
- Failure to meet policy requirements – Another reason insurance claims may be denied in Colorado is because the policyholder failed to follow the insurance provider’s rules and regulations. Often this includes not filing the claim within a specified time frame and thus missing the deadline. Insufficient documentation or missing information can also lead to claim denial.
- Disputes over what caused the damage – Insurance companies may dispute the cause or extent of damage if they believe the damage was not solely caused by the wildfire.
- Insufficient coverage – If your policy does not provide adequate coverage for rebuilding or repairing your home after a wildfire, your claim may be denied or you may receive a lower payout than expected.
Filing a wildfire insurance claim in Colorado is a critical step in recovering from the devastating effects of these natural disasters. However, navigating the claims process can be complex, and making mistakes could potentially delay or even jeopardize your claim. That’s the last thing you want when facing the long road to recovery after a disaster like this.
During the entire claims process do your best to be vigilant and document the actions of your insurance company, including writing down the dates of communications, inspection dates, names and affiliations of various people, and brief summaries of any non-written communications or interactions. This will be particularly helpful if you need to file an appeal.
In addition, here are some common mistakes to avoid when filing a wildfire insurance claim.
5 Mistakes to Avoid When Filing a Wildfire Insurance Claim
- Waiting Too Long to File – Insurance companies find all kinds of reasons to delay or deny your claim. Don’t give them an easy one by waiting too long to file your wildfire insurance claim. Insurance policies often have strict deadlines for reporting damages, and failing to act promptly can result in denial or delays in processing your claim. Avoid this mistake by initiating the claims process as soon as it’s safe to do so after the wildfire.
- Not Understanding Your Policy – Failure to thoroughly review your insurance policy before filing a claim can lead to misunderstandings about coverage limits, exclusions, and deductible amounts. Take the time to review your policy carefully and pay close attention to what is covered and what is not. Exclusions can often be the culprit of denied claims, so you want to be sure you understand your policy before submitting a claim.
- Underestimating Your Losses – It’s essential to accurately assess the value of your losses when filing a wildfire insurance claim. Otherwise, you might be left with inadequate compensation and stuck paying out-of-pocket for the difference. This is why maintaining a home inventory is imperative for all property owners. Relying on memory is a poor substitute for written documentation. When filing a wildfire claim, review your home inventory and take note of all damaged or destroyed property, including structures, personal belongings, and landscaping. Provide detailed documentation to support your claim.
- Failing to Document Damaged Property Before Discarding It – After a wildfire, it’s tempting to begin cleanup and restoration efforts immediately. However, discarding damaged property without documenting it first can hinder your ability to file a successful insurance claim. Before throwing out any damaged items or debris, take photographs and videos of everything. Having a detailed inventory of the damage will be invaluable when filing your claim.
- Failing to Mitigate Further Damage – Insurance policies typically require policyholders to take reasonable steps to mitigate further damage after a covered loss. Failing to do so could result in a reduction of your claim payout or even denial of coverage. After documenting all damage with photos and videos (see Mistake #4 above), take appropriate measures to prevent additional damage from occurring, such as covering broken windows, tarping damaged roofs, and drying out water-damaged areas.
How to Dispute an Underpaid Wildfire Insurance Claim in Colorado
In Colorado, homeowner’s insurance claims may be denied for several reasons, including insufficient documentation or policy exclusions. When a claim isn’t outright denied, another scenario that often plays out in the state is underpayment. If this happens to you, there are a few steps you should take to dispute and overcome an underpaid claim.
- Review current documentation – As you pursue an appeal on an underpaid claim, you first want to review all existing documentation from your insurance provider. What is included and excluded from the insurance settlement? Do you see other discrepancies with the damage calculation?
- Obtain a competing estimate – Next, contact a professional who can offer a second opinion to support your claim. Gathering a competing estimate will give your appeal legs to stand on and further documentation to support your case.
- Share the estimate with your insurance company – Give the estimate to your insurance provider and offer them the opportunity to compare the estimate with their settlement. Point out discrepancies and note the qualifications of the professional who completed the estimate. After reviewing, the insurance company should answer for their shortcomings. If they don’t, another option for property owners is to take the claim to appraisal. During the process of appraisal, an impartial party will work to settle the claim fairly out of court.
Colorado law requires insurance companies to make reasonable settlement offers based on the policy coverage and damages received to the property. Unfortunately, some insurance companies may engage in unfair practices like unreasonably denying a claim or delaying payment of a valid claim. Know that acting in bad faith is illegal.
If you believe your claim was unfairly denied, consult an insurance law attorney right away to get help. Our team at Kandell, Kandell & Petrie is here to answer your questions and ensure you get the relief your insurance company owes you for your claim. Contact us today to speak to one of our Denver claims advisors.
Wildfire Preparation Tips for Colorado Homeowners
Wildfire season in Colorado has historically spanned just the summer months, but today, we’re experiencing devastating fires year-round. Even during the winter months, Colorado residents are at an increased risk for wildfires. While you won’t be able to stop a raging fire that’s headed your way, there are steps you can take to prepare your home and family for such a disaster.
- Create (or update) a home inventory – If you own property in Colorado, you need to maintain an updated home inventory. A home inventory is a list of your personal possessions along with their corresponding financial value. Photos and videos should also be included in your inventory, as should receipts and other documentation.
Home inventories are important for many reasons, but when it comes to the insurance claims process, having a detailed home inventory can greatly expedite your claim and offer the proof of loss you need when filing a wildfire claim. Because your inventory serves as concrete evidence of what you own, there are generally fewer disputes when it comes to compensation questions.
- Maintain your home and yard – The Colorado Division of Fire Prevention & Control recommends homeowners take several steps to prepare for wildfire season. This includes raking and removing pine needles and dry leaves 5 feet from the home, removing leaves and needles from roofs and gutters, sweeping porches and decks, covering any exposed eave or attic vents with ⅛-inch metal mesh screening, and ensuring home address signs are clearly visible from the street, among taking other precautionary measures.
If you live in a wooded area, the goal is to remove ladder fuels. Cut back brush and trim trees so that all branches are 10 feet above the ground. Ideally thin trees so that there is 20-30 feet between them.
- Review your insurance policy – Now is the time to review your insurance policy so you’re aware of coverage levels and any possible exclusions to your policy.
- Prepare for evacuation – Create an evacuation plan and prepare a “go bag.” Ensure you have essential items such as medications, important documents, extra clothes, food, water and pet supplies in an easy-to-grab bag in case of evacuation.
- Stay informed – Monitor fire conditions and stay informed of wildfire conditions in your area. Also consider signing up for emergency alerts to receive timely updates about wildfire threats and evacuation orders.
Preparing your home for wildfire season in Colorado is essential for protecting your property and ensuring the safety of your family. Bear in mind that wildfire preparedness is an ongoing process, and regular maintenance and vigilance are key to keeping your home safe during wildfire season.
Contact Us at KK&P Law Firm if You Have Questions About Wildfire Insurance Claims
Wildfire damage to your home is devastating. If you experience a loss due to wildfires in Colorado, contact our team at Kandell, Kandell & Petrie to speak to one of our Denver-area claims advisors. We will help guide you through the claims process and ensure you receive the relief you deserve for your insurance claim.
