RMIIA News Releases

7951 E. Maplewood Avenue, Suite 110
Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming

Contact: Carole Walker, Executive Director
303-790-0216 or toll free 800-355-9524

Insurance Damage Estimates from The Fourmile Canyon Fire Total More Than $200 Million—Making the Devastating September Blaze the Most Expensive Wildfire in Colorado History.

September 20, 2010 – The Fourmile Canyon Fire has taken a devastating toll on residents, burning 169 homes and other personal property in the foothills just northwest of Boulder. Insurance adjusters gained access to the area last week, and while the claims and rebuilding process continues, preliminary damage estimates now total $217 million from insurance claims that include smoke damage, additional living expenses, damaged and destroyed homes, as well as personal belongings and vehicles. The estimated insured losses make the Fourmile Canyon Fire Colorado's most expensive wildfire with an insurance price tag four times higher than 2002's Hayman Fire which resulted in $46.1 in insured damage when adjusted for inflation in today's dollars.

"The Fourmile Canyon Fire is a heartbreaking reminder to Coloradans that the wildfire threat is very real in our state and can exact a price that is both personally devastating and costly in terms of insurance damage," says Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. "With our last major wildfire occurring more than eight years ago, it is easy to forget that we need to be prepared—both in terms of protecting our property with mitigation and making sure we have the insurance we need to recover when the unthinkable happens."

Wildfire & Insurance Background:
http://www.rmiia.org/Catastrophes_and_Statistics/Wildfire.asp

Residents with homeowners insurance have coverage under the policy limits to repair and rebuild the structure of their home, replace their personal belongings and additional living expenses if they need to live elsewhere while their home is being repaired or rebuilt. Make sure you are working with your insurance company's adjuster (that's who your contract is with) and a reputable contractor. Cars that are damaged or destroyed are covered under the optional comprehensive portion of your auto policy. Renters insurance pays to replace personal belongings up to the policy limits.

Keep in mind that it is a process that needs to be worked through step-by-step, but there is plenty of assistance available to you through your insurance company and other financial service providers.

Insurance Claims Settlement Advice:
http://www.rmiia.org/Homeowners/Walking_Through_Your_Policy/Settlement_Process.asp

Tips for Selecting a Reputable Contractor

Don't become a victim of disaster fraud. After a headline capturing fire or natural disaster, professionals often go from door-to-door in damaged neighborhoods, offering clean up or repair services. Many of these business people are reputable. Others are not. The dishonest ones may pocket payment without completing the job or use inferior materials and perform shoddy work not up to code.

Contractor Checklist:

• Get more than one estimate. Don't be pushed into signing a contract right away.
• Get everything in writing. Cost, work to be done, materials, time schedule, guarantees, payment schedule and other expectations should be detailed.
• Demand references and check them out.
• Ask to see the salesperson's driver's license and write down the license number and license plate number.
• Ask for proof that the contractor is bonded, carries liability insurance, and covers his/her workers with workers compensation insurance.
• The contractor's business card should have a verifiable street address and office phone number.
• Never sign a contract with blanks; unacceptable terms can be added later.
• Never pay a contractor in full or sign a completion certificate until the work is finished. Request a lien waiver indicating the contractor has paid its subcontractors and suppliers.
• Insurance coverage may be rendered void if intentional misrepresentation by a policyholder is discovered.
• If you believe you have been approached by an unlicensed contractor or adjuster, or have been encouraged to fabricate an insurance claim, contact your insurance company or call the National Insurance Crime Bureau Hotline at 1-800-TEL-NICB (1-800-835-6422).

Log on to www.rmiia.org for more information.

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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.