Published: January 21, 2016

Are you looking to move to the mountains or foothills of Colorado and finding it difficult to get insurance on your dream property?  Look no further.  We have options.  Here is some helpful information.

Why is it difficult to get insurance in the mountains?

  1. Brush Fire Zones:  Insurance companies have created specific mapping zones that they will target as less favorable for insurance.  Why?  Because they are considered a high brush fire area and more likely to sustain a wild fire.
  2. Tree mitigation:  Trees in the mountains and foothills that are not cleared away from the property may put the property at higher risk.  Often times, the homeowner does not want to cut these trees down as it makes the landscape more enjoyable, but in reality they become a higher risk to the home starting fire
  3. Iso or Town Class ratings:  Every property and street address has a town class or ISO rating.  Typically, If you are more then 6 miles or more then 1000 feet from a fire hydrant, It can throw you in a class rating of 5-9.  1-5 are considered low risk.  5-9 are considered higher risk and a 10 is considered very high risk.  Can you insure the home at higher ISO ratings?  Yes, but typically with surcharges.
  4. Propane Heat:  Often times propane is the only heat source for homes.  With gas being filtered into the home via propane, there is a higher risk for fire.  Thus a higher exposure to the insurance company
  5. Water Source:  So lets say your house is on fire.  The fire department has you in a town class of 5.  They arrive on scene 10 minutes after being called but they don’t have enough water.  There is no fire  hydrant to pump the water.  In some cases, we can see a lower  home rate if there is a stream, pond or lake that can be used but in most cases, if the water runs out, the home wont make it.
  6. Beetle Kill:  Despite there being evidence that this epidemic may be diminishing, there are still way too many trees that are dying or have died as the result of beetle kill.  This creates a higher exposure to a wild fire.

What can you do to get insurance for your mountain home?

  1. Find a broker agent that has many carriers.  This will keep you from having to call 10 insurance companies and get the same “no” answer.
  2. Work with the insurance company to clear space around the home.  They will often make recommendations on brush, bark, pine cones, trees that touch the home etc
  3. Work with your local fire department.  Have them come out and give you a rating of how well you are doing with your home and property when it comes to fire mitigation
  4. Higher deductibles.  Insurance underwriters are likely to offer coverage if you are sharing in the risk a bit more
  5. Bundle your auto, home and umbrella.  The more premium, the more likely the insurance company will work with you
  6. Ask a lot of questions.  Many insurance policies in the mountains or foothills will offer inferior coverage.  Actual Cash Value vs. Replacement Cost.  Don’t get stuck with lower coverage when there may be a carrier that will take on the extra coverage.

  I hope this helps.  Call us for a free quote on your Mountain Property.