Both house and condo owners have been watching their premiums head through their roofs.
Condo owners in Louisville, Colorado have been reporting that their homeowners insurance rates have skyrocketed by 700 percent.
This isn’t an isolated incident, as rates throughout the state have been rapidly rising this year.
Colorado homeowners insurance premiums have been going up for a number of reasons, but they are mainly being linked to high inflation in addition to increasingly common and destructive wildfires, floods, and hailstorms.
State Rep. Kyle Brown, a resident of Louisville, Colorado, is making an effort to assist homeowners who suddenly find themselves facing considerably larger premiums to keep their coverage in place.
“I’m here to be creative, to come up with first-in-the-nation solutions because that’s what this is going to take,” said Brown.
Brown proposed a bill during the last session to provide protection against too little homeowners insurance.
Carrying too little coverage is a serious problem in the state. When disasters occur, they leave property owners with too little coverage to pay for the repairs for all the damage left behind. According to Brown, he’s now working on legislation that will take on the issue of availability and affordability of coverage in the state as well.
“We need choice, we need competition, we need a healthy market and right now there’s so much uncertainty and volatility in the homeowners insurance market that it’s making it very difficult for folks to come home and stay home,” explained Brown.
The Colorado legislature has already passed a law that involves somewhat of a governmental-based homeowners insurance company of last resort for property owners who are unable to find coverage anywhere else in the private market.
The state’s Division of Insurance intends to begin stakeholder meetings in coming months for this project and will begin the rollout of the project at some point in 2024. The plan is expected to be quite basic, but will ensure that property owners are able to obtain the coverage they need to protect themselves against financial ruin in the face of a disaster. Unfortunately, natural disasters are only becoming more commonplace in the state.
Insurance FAQ’s About Colorado Home Insurance Rate Increase
Q1: Why have homeowners insurance rates increased so drastically in Colorado?
A: The spike in homeowners insurance premiums in Colorado can be attributed to high inflation coupled with increasingly frequent and destructive natural disasters such as wildfires, floods, and hailstorms.
Q2: What measures are being taken to help homeowners cope with the increased premiums?
A: State Representative Kyle Brown has been actively working on legislation to address the issue of availability and affordability of coverage in the state. He is focused on creating innovative solutions to ensure a healthy and competitive insurance market in Colorado.
Q3: What is the problem with carrying too little homeowners insurance coverage?
A: Insufficient coverage becomes a serious problem when disasters occur, leaving property owners unable to cover the cost of repairs for the damage incurred. This issue is particularly significant in a state like Colorado where natural disasters are becoming more common.
Q4: What steps has the Colorado legislature taken to provide homeowners with insurance coverage?
A: The Colorado legislature has passed a law to establish a government-based homeowners insurance company of last resort. This will serve property owners who are unable to find coverage in the private market.
Q5: When can homeowners expect the rollout of the government-based homeowners insurance company?
A: The state’s Division of Insurance plans to begin stakeholder meetings for this project in the coming months, with the rollout expected to commence in 2024. While the plan is expected to be quite basic, it will ensure that property owners can obtain the necessary coverage to protect themselves financially in the event of a disaster.
Q6: Why are condo owners in Louisville, Colorado experiencing a 700% increase in their homeowners insurance rates?
A: The dramatic increase in insurance rates for condo owners in Louisville, Colorado is part of the broader trend of rising insurance premiums throughout the state. These increases are mainly due to high inflation and the increasing frequency and severity of natural disasters.