Colorado Fire Insurance

Your Complete Guide to Fire Insurance in Colorado

Find the right fire insurance policy for you.

In Colorado, property owners face the risk of accidental fires as well as damage caused by wildfires. Recently, the Black Forest Fire began near Colorado Springs and destroyed 488 homes, making it the most destructive wildfire in the state’s history. Fortunately, most of those affected were covered by fire insurance. Are you?

One of the many independent insurance agents in Colorado can help you review your home, auto, and business insurance policies to help you make sure you have sufficient fire coverage. Find an insurance agent near you to get started.

Colorado Fire Statistics

  • In recent years, CO firefighters battled 1,327 structure fires, 604 vehicle fires, and 2,750 other fires.
  • The average residential fire results in $21,462 in property damage.
  • There have been more than 17,000 wildfires in Colorado since 2002.
  • In the last decade, wildfires burned approximately 1 million acres in CO.

What Is Colorado Fire Insurance?

Fire insurance is not a stand-alone policy. Rather it is included in many of the policies you already have. It is designed to cover the cost of replacing lost or damaged property and assisting with expensive clean-up costs, if necessary.

It is important that you know what your current insurance policies do and do not cover so that you can be sure you are sufficiently covered against fire damage. A quick review of your current coverage may reveal that it is time to raise your coverage limits or start shopping for a new insurance provider.

Fire Insurance for Your Colorado Home

Whether you rent or own your Colorado home, it is important to be certain that your property is fully covered against the losses you may incur in the event of a fire. You can obtain fire insurance protection through one of the following policies:

  • Homeowners insurance: Home insurance policies provide coverage against fire damage to both the structure of your home and the property inside it. Most policies will allow you to purchase special riders to provide coverage for specialized items such as ATVs and boats while they are stored on your property.
  • Renters insurance: If you rent your home, you can take comfort in knowing that your landlord is responsible for covering damage to the structure of the building you live in. However, you need to cover your own personal property with a renters insurance policy. This surprisingly affordable insurance can cover the cost of replacing property lost or damaged due to fire and other hazards.
  • Condo insurance: If you live in a condo or townhouse, your condo association’s master policy will cover damage to the structure of your building. However, you are responsible for covering everything inside your unit. A comprehensive condo insurance policy will provide coverage against fire damage to interior walls, floors, and ceilings as well all of the personal property you keep inside your condo.
  • RV insurance: Colorado is a great place to own an RV. If you use your recreational vehicle for your primary housing, you are likely to keep a lot of valuable personal property inside. An RV fire may occur due to an overheated engine while driving or a motor vehicle accident, or while you are parked and doing mundane tasks such as cooking or using candles. RV insurance provides fire insurance coverage for all of the ways that your motor home may be damaged.

Colorado Fire Insurance to Protect Your Vehicle

Vehicle fires are very destructive and nearly always result in your car being totaled. Whether your auto insurance will cover the damage will depend on how the fire started and whether you have purchased the appropriate coverage options.

  • Vehicle fires caused by collisions for which someone else is at fault: If your vehicle catches fire as the result of a collision that is caused by someone else, they are responsible for covering your damage. In the event that the at-fault driver is uninsured, you can receive compensation from your insurance company if you have included uninsured motorist coverage in your policy. If you do not have this optional coverage, you will need to take the at-fault driver to court.
  • Vehicle fires caused by collisions for which you are at fault: If you are at fault for a collision in which your vehicle catches on fire, the damage will only be covered if your policy includes collision coverage. This optional coverage is typically required by lenders if you are still paying for the car.
  • Vehicle fires of non-collision origin: Sometimes, vehicles are damaged in fires while they are parked. It may be that the vehicle was parked in the garage of a burning building, or that faulty wiring in the car caused an engine fire. Whatever the reason, if your vehicle is damaged by fire in a non-collision event, the damage will only be covered if your policy includes comprehensive coverage. This optional coverage is typically required by lenders if you are still paying for the car.

Fire Insurance for Your Colorado Business

If you are a business owner in Colorado, you will want to be sure that the investment you have made in your company is properly insured against fire damage.

  • Home-based businesses: If you run your business out of your home, your homeowners insurance may provide you with sufficient coverage against fire damage. However, depending on the scope of your business, you may be required to purchase special endorsements to cover your materials and equipment. An independent insurance agent can help you determine if your home insurance policy provides adequate coverage.
  • Other businesses: A business insurance policy can provide you with coverage against fire damage to your business materials, inventory, and equipment. It can also cover damage to the structure of the building in which your business is housed if it is business-owned. Some business types, such as restaurants, have an increased risk of fire damage. It is important that you ensure that your coverage limits are high enough to cover your business in the event of a total loss.

Who Can Help Me Review My Fire Insurance Coverage?

It’s always a good idea to review all of your insurance coverage every few years to make sure that your policies have kept up with changes in your life and situation. When checking for sufficient fire insurance, you can benefit from the assistance of an independent insurance agent.

There are more than 250 independent agencies in Colorado. These agents will be happy to answer your insurance-related questions and assist you with all of your coverage needs. They may even be able to save you money by finding better policies at more competitive rates. 

Talk to an insurance agent near you to learn more.

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https://www.nfpa.org/News-and-Research/Publications/NFPA-Journal/2018/September-October-2018/Features/2017-US-Fire-Loss-Report

https://www.homeadvisor.com/cost/disaster-recovery/repair-fire-and-smoke-damage/

https://www.colorado.gov/pacific/dfpc/2018-fire-data

https://www.firescience.org/worst-states-fire-danger/