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Wildfire and home insurance in Colorado — what you need to know

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Home Published January 1, 2026

The 2021 Marshall Fire destroyed 1,084 homes in Boulder County. In its analysis of 951 total-loss claims, the Colorado DOI found 523 policies (55%) were underinsured at a modeled rebuild cost of $300 per square foot.Actual rates vary by driver, home and policy.

The dwelling limit problem

Your "dwelling coverage" should reflect what it would cost to rebuild your home from the foundation up at today's Colorado construction prices. Review the estimate with a qualified local contractor and compare it with your policy's dwelling limit.

What to look for on your policy

  • Extended replacement cost (often 25%, 50%, or "guaranteed") — a critical buffer when rebuild costs spike post-disaster.
  • Ordinance or law coverage — pays the additional cost to rebuild to current code, which can be substantial for older homes.
  • Loss of use / additional living expense — may help pay rent and other covered living costs while your home is rebuilt, subject to the policy terms and limits.
  • Replacement cost on contents — covers your personal belongings without depreciation.

WUI areas and carrier appetite

If you live in or near the wildland-urban interface (WUI) — the foothills, parts of west Arvada, west Golden, west Lakewood — many carriers have stopped writing new business or non-renewed existing customers. As an independent agent, Cassondra knows which carriers still actively quote WUI properties and what mitigation steps (defensible space, Class A roof, ember-resistant vents) earn the best rates.

What to do today

Pull your declarations page and find your dwelling limit. Divide it by your home's square footage to see the implied rebuild cost, then compare that figure with a current estimate from a qualified local contractor. Request a free policy review.

Sources

Rules, rates, underwriting practices, and market conditions can change. Consult the original source and your policy for current details.

Frequently asked questions

Coverage varies by policy and carrier. This is general information, not a coverage decision. Talk to a licensed agent about your situation.
CS

Written by Cassondra Sells, Owner & Licensed Insurance Agent

Independent insurance agent serving Arvada and the Denver metro. Dedicated to transparent, honest advice.

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