The Colorado Division of Insurance published a bulletin informing insurers of the Division's position on claim handling for those affected by the current wildfires and other disasters.
The Aspen Acres, Gold Mountain, Ferris, Big Sheep, Snyder, and Willow fires have displaced thousands of Colorado residents, who may have limited access to their homes in order to determine whether their homes have been damaged or are safe to occupy. Insurers should be aware that damage assessments may not be possible while evacuation orders or unsafe conditions continue.
Insurers should evaluate whether there are applicable additional loss expenses, loss of use, or similar coverage for displaced policyholders. Insurers should not deny an evacuation-related claim if the insurer has not been able to inspect the property to assess the damage.
The Division expects insurers to promptly handle claims involving ALE, loss of use, and similar coverages, and they should be settled in a fair, reasonable, and policyholder-centered manner. Insurers are also encouraged to waive any ALE or loss of use waiting period for residents displaced by wildfire conditions or evacuation orders.
The Division encourages insurers to explore all temporary housing options, which may be limited in areas affected by wildfires. This includes short-term and long-term options, including hotels, motels, short-term rentals, apartments, Airbnb, VRBO, RVs, and others.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.