As wildfires again burn here in Larimer County, across the country, and beyond, I’m reminded that preparedness is key. In addition to personal safety, properly insuring one of your largest assets, your home, is paramount to protecting yourself, especially if you live in an area prone to climate risks.

If you’re affected by the Alexander Mountain Fire, Stone Canyon Fire, or Quarry Fire here in Colorado, what should you know about your homeowners insurance policy? And if you’re taking this time to better understand your policy and ensure that your homeowners insurance coverage is appropriate, what should you be looking for? While I’ll defer to the Colorado Department of Regulatory Agencies’ Department of Insurance for the official word, I’ll also break it down here, in hopes of sharing this information with a broader audience.

Understanding Insurance for Evacuees

If your home is in an area under a mandatory evacuation order, there are certain insurance-related steps you should take once you and your loved ones are safe. The first step is to contact your insurance agent. Let them know that you were required to evacuate from your home and that you’re out of harm’s way. Then, share any updated contact information with them, including your temporary address. You’ll also want to contact us here at FPFoCo for peace of mind and for support throughout the process.

If you don’t have access to your insurance policies through an app or online login, were forced to leave your phone or computer at home when you fled, lost it during the evacuation process, or otherwise don’t have access to your devices, you may ask your agent to mail physical copies of your policies to your temporary address. Otherwise, your agent may be able to assist you with accessing a digital copy. We may also have a digital copy on hand if you’ve recently provided one. And if you’re an ongoing implementation support client, I’m here to guide you through the process of contacting your insurance agent and asking the right questions.

On your homeowners policy, look for your deductible. This is the amount that you’ll be required to pay before your insurance covers home repairs or replacement. Be sure to ask if a deductible applies to your loss of use or additional living expenses (ALE) coverage. This coverage may assist you in paying for the cost of your temporary shelter while you’re unable to return home. It can also cover your housing expenses while your home is being repaired or rebuilt. Be sure to ask your agent if there’s a waiting period or if loss of use covers you even if your home is not damaged or destroyed.

If you carry loss-of-use coverage as a homeowner — and even as a renter — your agent may be able to assist you with temporary lodging options. And your loss-of-use coverage will cover any costs above and beyond your usual expenses. On most policies, this coverage is stated as a time period, like 12 to 24 months. Some insurers, however, state loss of use coverage as an amount, and your insurance will cover your related expenses up to that total. A few insurers also cover loss of use equal to the actual loss sustained.

Ask your insurer what supporting documentation you need to submit to receive ALE reimbursement. Then, save your receipts and track details like hotel and short-term rental costs as well as dining expenses along the way. You may also want to track your mileage to and from work as your insurer might reimburse you for the additional distance you drive due to displacement.

If your auto insurance policy is with the same insurer or agent, they’ll likely also have questions about your vehicles and whether you had to leave any behind at your property. In the event that your vehicle is a partial or total loss, the only coverage that would protect it is your comprehensive, or other than collision, coverage. Even with this coverage, some insurers won’t pay to repair or replace your vehicle based on your location, so be sure to ask your agent if you carry comprehensive coverage and if they impose any restrictions due to wildfires.

Returning Home

When your evacuation order has been lifted and you’re allowed to return home, it can be difficult to consider that you might not have a home to return to. If your home was damaged or destroyed, you’ll again want to contact your insurance agent. They can help you understand the best way to document the damage so you can promptly file your claim. Time is especially of the essence here, so act as quickly as possible.

 

Even if an insurance assessor is required to visit your property to document damage, doing so yourself is an important first step. Your insurance company will want to know that you did everything you could to avoid further damage as soon as you were able to get to your property. So document the state of your home when you arrive using photos and videos. Protect your home using available materials, like tarps and boards, but do not repair your home until the assessor has evaluated the damage. If your home has underlying safety issues, you could further damage your property or injure yourself by attempting to repair it.

 

Getting in contact with your insurer as soon as possible can help you avoid delays and get back into your repaired or rebuilt home more quickly. Many others living near you will also be filing claims. And by acting fast, you can get into the claims queue faster. When you receive prompt reimbursement for a claim, it may lead to a faster home repair or rebuild. This piece is crucial because, unless your loss-of-use or ALE coverage is equal to the actual loss sustained, it’s not unlimited and will run out based on time or amount.

Preparation

Of course, if you’ve been alerted that you’re in a voluntary evacuation zone, you may want to document your belongings and pack paper copies of your policies in your go-bag. Your photos and videos of your belongings can help substantiate a claim in the event that your home is damaged or destroyed. However, you can leave your documents as one of the last items on your list as there are other ways to get ahold of your policies. Here’s a helpful resource for preparing for a fire evacuation from the U.S. Forest Service. A friendly reminder to always place your, your family’s, and your pets’ safety ahead of securing items, even if they can’t be replaced.

If your home is not in immediate or near danger and you’re practicing preparedness, take some time to understand your homeowners insurance more in-depth. When it comes to your home, simply having insurance isn’t enough. You need to have the right coverages and correct amounts. Check out my blog Beyond the Basics: Quoting and Comparing Home and Auto Insurance for details.

As an FPFoCo ongoing implementation support client, I’m happy to review your insurance and ensure that your home is properly protected. Simply reach out with a secure upload of your homeowners or renters policy, and I’ll analyze your protection. While you’re at it, send your auto and umbrella policy my way, too, for a comprehensive review.