Colorado wildfire home insurance bill struck down
Legislation which would have added additional requirements to homeowners insurance companies in Colorado was not approved by state lawmakers.
The bill, created by Representative Claire Levy, would have required insurers to ensure their models for calculating replacement costs took local construction costs into account, and pay for living expenses for up to two years after a loss which required alternative living arrangements.
In addition, firms would have been encouraged to offer additional insurance products and let homeowners know if their coverage limits might not cover a total loss.
The bill was created after many victims of the September 2010 Fourmile wildfire said they later found out that their insurance wasn't enough to rebuild their properties. A survey completed by the county found nearly 60 percent of fire victims thought they were underinsured.
"The tragedy of the situation is that you don’t know that you are not covered, you don't know that you're not protected until it is too late to do anything about it," Levy told the House Local Government Committee, KUNC radio reports.
The Fourmile fire was one of the worst wildfires in Colorado history, destroying more than 150 homes.
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