NEWS BRIEF
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Rocky Mountain Insurance Information
NEWS
6565 South Dayton St. #2400, Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming
Contact: Carole Walker, Executive Director
(303) 790-0216 or 1-800-355-9524
Release Date: Immediately
Topic: Catastrophes
EARLY INSURANCE ESTIMATES ON THE IRON MOUNTAIN FIRE ARE LOWER THAN ANTICIPATED
June 7, 2002 – With the majority of insurance companies reporting, and based on claims filed so far, the insurance industry estimates the cost of the Iron Mountain Fire near Canon City to be $7.5 million in insured losses to personal property. Companies have taken in about 78 claims, with 25-30 of those claims representing homes that are a total loss. Other claims being filed include damage to structures and personal belongings, smoke claims, additional living expenses and damage from firefighting efforts. These preliminary industry estimates could change as claims continue to be reported to their insurance carriers.
“The insurance industry will be part of a damage assessment team made up of local, state and federal officials that will tour the burned out areas next week,” says Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. “This assessment will give us a more complete picture of the type of devastation and help confirm how many people impacted by the fire may not have had any insurance at all.” While the potential for high dollar losses from wildfire are a very real threat in Colorado, they are isolated events in which cost is determined by the density of primary homes in the area (as compared to vacation homes and cabins), their estimated value and the amount of insurance coverage on the properties.
The most costly fire in terms of insured losses was the October 1991 Oakland Hills fire which caused $1.7 billion in insured losses (about $2 billion in today’s dollars). Catastrophic fires account for 3% of insurance losses. That compares to 33% for hurricanes, 32% for tornadoes and 13% for earthquakes. The 2000 Hi Meadow and Bobcat Fires in Colorado caused an estimated $18.5 million in insured damage.
Fire officials are predicting that Colorado’s tinderbox conditions could make 2002 the most devastating on record. It’s critical that homeowners check their homeowners policies now to make sure their coverages and home inventories are up-to-date! Click on Wildfire for more information.
The Rocky Mountain Insurance Information Association has this advice for affected homeowners filing claims after the fire:
WHEN YOU ARE ALLOWED BACK INTO YOUR HOME
- Be prepared to give your agent or insurance representative a description of any damage. Your agent will report the loss immediately to your insurance company or a qualified adjuster. Smoke damage and damage from firefighting efforts (i.e. slurry damage) is covered up to your policy limits.
- Take photos of the damaged areas. These will help with your claims process and will assist the adjuster in the investigation.
- Prepare a detailed inventory of all damaged or destroyed personal property. Be sure to make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.
- Make whatever temporary repairs you can. Cover broken windows, damaged roofs and walls to prevent further destruction. Save receipts for supplies and materials you purchase. Your company will reimburse you for reasonable expenses in making temporary repairs.
- Secure a detailed estimate for permanent repairs to your home from a reliable contractor and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.
- Serious losses will be given priority. If your home has been destroyed or seriously damaged, your agent will do everything possible to assure that you are given priority.
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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.
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