How to prepare for the 2017 wildfire season

STATEWIDE — In April, Colorado’s Division of Fire Prevention and Control issued its 2017 wildfire outlook for the state. Models currently indicate that the state can expect an average or possibly even below average wildfire season.

While that’s good news, such a forecast can still mean plenty of fires, because even though the weather looks to be more favorable this summer, there is still plenty of fuel in the mountains.  

Because it’s not a matter of “if,” but “when” for wildfires, the Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), wants consumers to understand the importance of mitigation, while understanding a couple of helpful tips about homeowners insurance.

Mitigation - Reducing the threat

Insurance is there to provide financial security, but fire prevention and the prevention of damage to homes should be top priority. Adding fire-resistant features can make a home safer, and thus could lead to discounts on future homeowners insurance premiums. Because wildfires have become common, most insurance companies now require homeowners who live in wildfire areas to mitigate fire hazards on their property. Below is a list of mitigation steps to take in preparation for the dry summer months ahead.
√ Use fire-resistant materials in home structure, especially the roof, which is most vulnerable.
√ Clear a safety zone around the home and remove trees, leaves, brush and pine needles. Create a zone of at least 100 feet, but know that 200 to 500 feet is often recommended. Also remove overhanging tree branches near the home.
√ Be sure propane or fuel tanks are at least 30 feet away from all structures.
√ Keep the smoke detectors and fire extinguishers inside the home working properly.
√ Those do not have access to a community water system or water hydrant should get a water storage tank. Make sure garden hoses reach all areas of the property, and keep them visible and in accessible areas.
√ Be sure the entrance road is accessible. Inaccessible roads can prevent fire-fighting equipment from reaching homes quickly. The street address should be easily visible from the entrance to the property so emergency responders are not delayed.      

Insurance - Know your policy / Create a home inventory

Most people in Colorado likely do not need special insurance for wildfires, as such disasters are typically covered under the fire damage provisions of a basic homeowners policy. However, insurance coverage depends upon many factors, including the type of home or building, its contents, and whether the resident has a home-based business. Along with wildfire mitigation, insurance companies also consider other factors such as the type of construction and materials of the home, and the distance to a fire hydrant and/or fire station.

Actual cash value (ACV) policies only cover what the property is worth at the time it is damaged, minus the deductible. Replacement cost policies initially pay the ACV, less the deductible, but once the property is replaced, will pay the difference between the actual cash value and the replacement cost. Your policy should also take into account the cost of cleanup, especially after a wildfire.

Review policy and coverage limits annually to make sure it keeps pace with construction costs.

Complete a home inventory, as only an owner knows what’s been lost as a result of a fire, theft or other damages. The DOI is a member of the National Association of Insurance Commissioners (NAIC), which offers a home inventory app – MyHome Scr.APP.book. It helps in identifying losses after a disaster, but can also help you determine how much homeowners insurance you need.  The app is available for iPhones and Androids or use a downloadable, paper inventory to get started.    

Give enough information to the agent or insurance company to make sure the right coverage is purchased. Understand the contract.  Keep insurance agents updated on any changes that will impact the coverage.

Other Resources

The Rocky Mountain Insurance & Information Association (RMIIA) offers good information on the importance of mitigation on their site for Wildfire and Insurance, as well as facts and figures regarding wildfires in Colorado. And the Colorado Association of Realtors’ Colorado Project Wildfire offers more resources and even a toolkit to help homeowners mitigate their property.

Contact the Division of Insurance at 1-800-930-3745 or [email protected]. For more information, visit AskDORA.colorado.gov.