On December 30, 2021, Colorado sustained the most damaging wildfires in the state's history, which were followed by heavy snowfall, only complicating matters. More than 1,000 commercial and residential buildings have been damaged or destroyed; recovery will take time, displacing residents for extended periods of time. In light of this, the Colorado Division of Insurance issued a bulletin advising all insurers to expeditiously handle claims for additional living expenses and to help insureds rebuild or repair their homes.

The bulletin instructs carriers that if a home damaged by the fire was subsequently damaged by frozen pipes or other weather-related damage, those claims are to be considered related to the fire and treated as one loss, subject to one deductible. Waiting periods related to additional living expenses are to be waived for insureds whose homes were evacuated but were not totally destroyed by the fire.

Warping and structural integrity concerns due to extreme heat and particulate infiltration and contamination must be addressed. When dealing with smoke, soot, and ash, the long term effect on electronics, furniture and other property should be considered. The bulletin states that simply cleaning the walls and other property will not necessarily return insureds to their pre-loss condition. Carriers are also to consider insureds' concerns regarding faulty wiring, inoperable electronics, and contamination of soft materials. Health concerns need to be regarded as well.