Insurance industry estimates damage of Black Forest Fire at $300 million

Colorado homeowners insurance industry wildfires

Insurance industry suffers fresh blow from Black Forest Fire

A major wildfire has caused significant damage in Colorado. The disaster is being called the Black Forest Fire and was first sparked on June 11. The fire lasted until June 20 and is being considered the worst wildfire in the state’s history. The insurance industry has been working to assess the damage caused by the disaster since the fire had been effectively contained. This week, the Rocky Mountain Insurance Information Association has released a preliminary assessment of the damage caused by the Black Forest Fire.

Group estimates catastrophe caused nearly $300 million in damage

According to the insurance industry group, the Black Forest Fire caused approximately $300 million in damage. Thus far, the fire is considered responsible for over 3,600 auto and homeowners insurance claims. The fire destroyed an estimated 511 homes, damaging an additional 28, and burned nearly 15,000 acres in the state. Wildfires continue to have a significant impact on the insurance industry and its financial footing in Colorado more so in other states.

Colorado homeowners insurance industry wildfiresBlack Forest Fire is not the only disaster to put financial strain on Colorado

While the Black Forest Fire is being considered the most destructive wildfire in state history, it is not the disaster that has caused the most monetary damage. According to the Rocky Mountain Insurance Information Institute, the Waldo Canyon Fire of 2012 is the most costly wildfire Colorado has ever seen, with damages coming in at $453.7 million. The insurance industry group notes that wildfires have been a major problem for insurers and the state, but the industry is prepared to handle the impact of this disaster and any similar catastrophe that may unfold in the future.

Insurers warn victims to remain cautious of fraud

During times of disaster, consumers are not only encouraged to follow emergency measures, such as evacuation notices, they are also warned to beware of potential disaster fraud. The insurance industry often issues warning concerning fraud in the wake of natural disasters. These catastrophes are often accompanied by those that travel from door-to-door claiming to represent repair companies. Some of these people do represent such companies, but insurers caution that many of these supposed organizations are fraudulent in nature and seek only to take advantage of catastrophe victims.

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