Homeowners Insurance in Colo. Rising Due to Catastrophes
KREX News Room
DENVER- Homeowners in Colorado have seen big increases in their premiums in the past few years. Now, the state ranks among the top 10 for the highest share of homeowners insurance claims paid out due to catastrophes.
In the past few years Colorado has been hit hard by wildfires, hail and wind damage. The Insurance Research Council says catastrophes triggered only 26 percent of the claims made on homeowner policies from 1997 to 2006.
From 2007 to 2011, 41 percent of the claims paid out were due to large-scale events.
Carma Brown, personal insurance manager for Home Loan Insurance, said, "Western Colorado, eastern Colorado, across the board, every homeowner will see a rate increase on their home policy. I don't know of any insurance company that didn't have to take a rate increase this year. All of us are feeling the pain."
Industry officials believe catastrophes caused $1.6 billion in damages in Colorado from 1990 to 1999.
In 2010 and 2011 alone, they triggered $1.1 billion.
Taking the catastrophic piece away, Home Loan has also seen a large increase in the frequency of homeowners' claims, which may be due to the economy.