Pikes Peak Wildfire Prevention Partners March 27, 2015.
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Transcript of Pikes Peak Wildfire Prevention Partners March 27, 2015.
Wildfire Insurance Lessons Learned
Insurance Lessons Learned from Waldo & Black Forest Recoveries
Sharing the Critical Importance of Insurance Preparedness Prior to Wildfires or any Natural
Catastrophe
Colorado Springs Together – Our Laboratory
WUI & PUIWildland Urban Interface (WUI)
Prairie Urban Interface (PUI)
Where Humankind Meets the Wild – living in the Trees, in the open Range, etc
Increased Exposure to Wildfire
Why the WUI/PUI matters?
Increased Development in the WUI
Recent Increases in CO Wildfires
Waldo Canyon & Black Forest
How Should We Face This Increased Risk?
Today’s Objectives
New Natural Catastrophe Realities
Insurance Preparedness
Catastrophe Preparedness
Waldo Canyon Wildfire
Second Most Destructive CO Wildfire
Two Residents Killed
347 Houses Totally Burned
Many Partial Smoke and Heat Claims
Waldo Stats18,247 Acres
Declared 100% Contained July 10, 2012
8th Largest Wildfire in US History
Most Costly in CO - $460M
5th Worst Natural Disaster in CO
Black Forest Fire StatsDuration: June 11-20, 2013
Human Caused
14,280 Acres Burned
2 Deaths
488 Homes Destroyed – Most Destructive
$420M Estimated Damages
Similar.. But…DifferentWaldo Canyon
Residences in Two Square Miles
Suburban – 15-25 years
City of Colorado Springs
Recovery Led Private Sector
Black Forest
Residences in 23 Square Miles
Rural – Wide Class Range
Unincorporated El Paso Cty
Recovery: Public & Private
Wildfires: New CO Normal
Predicted to Increase
More People and Houses in WUI
Colorado: Major National WUI Exposure
Colo Spgs Wildfire Risk
8th Most at Wildfire Risk in US
14,900 Homes in Highest Risk Category
$4.4 Billion – Reconstruction Cost
Source: 2015 Wildfire Hazard Risk ReportCoreLogic
Colorado Catastrophes
2009 Most Costly Severe Weather Season:$1.4 billion in insured losses
July 2009 Hail Most Expensive Insured Disaster: $767.6 million.
2012 Waldo Canyon Fire: $466.7 million(2014 dollars)
2013 Black Forest Fire: $426.3 million(2014 dollars)
“Cat” Insurance Impact
HO Insurance Premiums Rising
Higher Claim Frequency & Severity Trends
Higher Building Costs / Larger, More Complex Homes
CO Ranked #2 in “Cat” Claims (2009-2013)
Replacement Costs
General Rule: TOO LOW
Review Current Rebuild Costs
Review Add’l Structures Costs
Report Structure Updates
Annual Reviews
Review Replacement Costs
Periodic Reviews
Include Recent Additions
Local Building Costs
Unusual Rebuilding Needs
Replacement Costs
How Can You Be Sure?
Compare Multiple Replacement Estimates
Check With Builder for “Rebuild or Reconstruction Costs”
Review Policy Limits
Does Your Policy Include at Least 20% Extended Replacement Cost Coverage
Does Your Policy Include Law & Ordinance (Building Code) Coverage?
Does Your Policy Provide Up to Two Years Additional Living Expense (ALE)
Required By CO HO Reform Act of 2013
Contents CoverageDoes the Automatic Limit Adequately Cover
You?
Review the Special Contents Limits
Schedule Antiques, Fine Arts, & Collectibles
Schedule Firearms, Jewelry, Computers & Other Valuables
In Home Business
Do You Run a Business from Your Home?
Will Your Homeowners Policy Cover You for Any Business Contents Losses?
Should You Consider a Separate Business Policy?
Insurance Availability
Higher Prices – Due to Recent “Cat” History
Tougher Underwriting –Mitigation
Higher Deductibles
Some Unavailability Possible
Home InventoryCreate an Inventory of Your Stuff in Home or
Apartment
Document Your Inventory – Pictures, Video, Receipts
Store Inventory and Records AWAY from Home!
Update the Inventory When You Make Major Purchases.
Inventory Assistancewww.knowyourstuff.org
NAIC: MyHome Scr.APP.book Mobile App
Insurance Company APPs/Clouds
FEMA's "Are You Ready?
I.I.I.'s "Know Your Plan" app for iPhone
PlanReduce Exposures to Loss – Mitigation
Know & Practice Evacuation Routes
Centralize Valuables Needing Evacuation
72 Hr. Disaster Kit
Back Up IT Data & Memorabilia
Stay InformedStay Informed - News & Weather
Information from Insurance Companies, RMIIA, Internet on Catastrophe Planning
www.rmiia.org/catastrophesand statistics/wildfireandinsurance.asp
Maintain Periodic Contact with Your Agent or Insurer
Community Involvement
Help a Neighbor Mitigate
Identify Opportunities to Reduce Risk
Advocate “Firewise” Communities
Support First Responders
Take AwaysBest Protection May Cost More
Preparedness Pays Dividends in Disasters
Best Time to Start is Now