Colorado Wildfire Coverage Bill Okayed

By Daniel Hays

NU Online News Service, July 12, 3:39 p.m. EST?With nearly 100,000 acres in Colorado still burning and insured fire losses approaching $80 million, legislators yesterday approved a measure to bar insurers from refusing to provide fire coverage within a federally designated wildfire disaster area.

An insurer trade group said bill is more acceptable now because it is less "overreaching" than the initial draft.

The bill, after winning final approval in the state Senate, is on its way to the Gov. Bill Owens for his signature. A spokesman for the governor said today it probably would not arrive for a week.

Before the legislation was in final form, it had to be recalled for a technical amendment. As passed initially, a provision in the bill said it would not apply to property "within an immediately threatened area as designated by the U.S. Forest Service."

But, after legislators realized that designation of a threatened area is made by the first fire authority on the scene-- not always the Forest Service--the state Assembly called the bill back and amended the provision to read "as designated by the appropriate state, local or federal official."

The Senate concurred with the amendment and voted again to pass the bill with the revision.

Michael Harrold, National Association of Independent Insurers Northwest Regional manager, said many insurers do not like restrictions imposed by the bill, but acknowledge the final bill is much better than the initial, "overreaching version."

The bill prohibits insurers from refusing to insure property in a federally-designated disaster area based on ZIP code, county or distance from a wildfire, but all other underwriting criteria are permitted.

Gov. Owens, on Monday, called the special session, which passed the fire insurance bill, primarily to rewrite the state's death penalty to conform to a recent U.S. Supreme Court decision. The session ended yesterday afternoon.

The Associated Press reported today that 95,000 acres were still ablaze in the state.

According to the last estimate provided by the Rocky Mountain Insurance Information Association, the overall estimated cost of the Iron Mountain, Coal Seam, Missionary Ridge and Hayman Fires in Colorado is $79.3 million in insured losses.

The Association said Monday that companies have taken in about 1,236 claims so far for the Hayman and Missionary Ridge Fires at an estimated cost of $65.4 million. That estimate of insured losses includes claims resulting from burned homes, personal belongings, smoke damage and additional living expenses.

Government reports indicate that 166 primary structures destroyed in those fires.

Colorado "is clearly in the midst of the most costly wildfire season in its history," said Carole Walker, executive director of the Association.

The Association said the Hayman Fire, southwest of Denver, and the Missionary Ridge Fire near Durango amounted to an insured loss so far of $65.4 million.

The Coal Seam Fire, near Glenwood Springs, accounted for $6.4 million insured losses and the Iron Mountain Fire near Canon City added $7.5 million insured losses.

Special Reports /

Colorado Wildfire Coverage Bill Okayed

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