Extreme weather is driving up insurance costs in Colorado
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Hundreds of thousands of property owners in Colorado are seeing higher insurance premiums or policy non-renewals this year because of the threat of extreme weather.
Driving the news: About one-quarter of properties could be facing higher insurance premiums or policy non-renewals due to the risk of wildfires or flooding, according to a new analysis by climate data nonprofit First Street.
- The primary danger in Colorado is wildfires — with about 20% of properties impacted.
- The remainder is flood risk at about 6%.
Why it matters: Insurers are changing how they factor climate and extreme weather risks into premiums. Others are suspending coverage altogether, and many homeowners may struggle to manage higher costs as a result.
The big picture: When it comes to wildfire and wind damage, some private insurers are dropping policyholders as the risk of those threats grows, says Jeremy Porter, First Street's head of climate implications research.
Zoom in: The greatest potential impact in Colorado is along the Front Range, notably in El Paso and Larimer counties.
Quick take: John's insurance broker says 20% or greater rate increases are the norm for 2023 with some insurers backing off issuing policies completely.
- Of note: Look for discounts, such as upgraded roofing tiles that will lower your rate. John saved hundreds of dollars just by emailing over an insurance update form.
Go deeper: Extreme weather could cause insurance rates across the country to spike