What to Do When Your Insurance Company Drops You Over Wildfire Risk

A step-by-step guide for Colorado homeowners who've received a nonrenewal letter — and how to fight back.

You open your mailbox and there it is: a letter from your homeowners insurance company informing you that your policy will not be renewed. The reason? Wildfire risk.

You're not alone. Colorado homeowners insurance premiums increased an average of 57.9% between 2018 and 2023, and nonrenewal letters have become disturbingly common in mountain communities, foothills neighborhoods, and anywhere near open space or forest land. In eight of the past eleven years, property insurers have actually lost money operating in Colorado.

If you've received one of these letters — or you're worried you might — here's exactly what to do.

Step 1: Don't Panic, But Don't Wait

Colorado law (HB23-1174) requires insurers to give you 60 days notice for nonrenewal. That sounds like a lot of time. It isn't. You need every day of it.

Mark the nonrenewal date on your calendar and start working immediately. A gap in homeowners insurance coverage can trigger your mortgage lender to force-place coverage — which is always more expensive and provides less protection.

Step 2: Understand Why You Were Dropped

Under HB25-1182 (effective January 2026), insurers that use wildfire risk models must now tell you:

• Your specific wildfire risk score and where it falls on their scale
• The factors that contributed to that score — topography, vegetation, building materials, proximity to fire stations, community-level mitigation
• What actions you can take to lower that score
• What mitigation discounts are available to you

If your insurer hasn't provided this information, request it in writing. They're required to give it to you.

Here's what's important: insurance companies often use satellite imagery and algorithmic models to assess risk, and these models can be wrong. There have been documented cases of Colorado homeowners being dropped because satellite images made their property appear more forested than it actually was. The view from space doesn't show your metal roof, your ember-resistant vents, or the defensible space you've maintained for years.

Step 3: Appeal Your Risk Score

This is new as of 2025 and most homeowners don't know about it yet. Under HB25-1182, you have the right to formally appeal your wildfire risk score directly to your insurer.

Here's how the process works:

1. Submit your appeal in writing with evidence of mitigation efforts — photos, receipts, professional assessment reports, documentation of defensible space work.
2. The insurer must acknowledge receipt within 10 calendar days.
3. They must respond with a decision within 30 calendar days.
4. If denied, the Colorado Division of Insurance Commissioner can request a copy of your appeal and the insurer's response for review.

The key word here is evidence. A phone call saying "but I cleared brush last summer" won't move the needle. A professional wildfire home assessment report showing your property has been evaluated against CWRC and IBHS standards, with specific scores, photographs, and documentation? That's a different conversation entirely.

Step 4: Shop the Market Aggressively

While you're appealing, start getting quotes. Don't limit yourself to the big national carriers — many of them are pulling back from high-risk Colorado markets anyway.

Where to look:

• Independent insurance agents who work with multiple carriers. They can access markets you won't find through direct-to-consumer companies. Ask specifically about carriers that specialize in wildfire-prone areas.
• Specialty carriers like Mutual of Enumclaw, USAA (if you're eligible), and regional mutuals that take a more granular view of risk.
• Colorado FAIR Plan — this is Colorado's insurer of last resort, established in 2023 (HB23-1288) and writing policies since early 2025. It's not cheap and the coverage may be more limited than your current policy, but it guarantees you won't go uninsured. Think of it as a bridge, not a destination.

When shopping, ask every prospective insurer: "What mitigation discounts do you offer for wildfire-hardened homes?" Some carriers now offer 10-20% premium reductions for specific upgrades like Class A roofing, ember-resistant vents, and maintained defensible space. These discounts are becoming more common as HB25-1182 takes full effect.

Step 5: Harden Your Home (Strategically)

Insurance companies are increasingly using risk models that evaluate specific features of your home. The good news is that these same models can work in your favor if you address the highest-impact vulnerabilities.

The upgrades that matter most to insurers — roughly in order of impact:

1. Roofing: Class A rated roof covering. If you still have wood shake, this is the single most important upgrade you can make, both for actual fire safety and for insurance purposes.
2. Vents: Ember-resistant attic, soffit, and crawl space vents. Standard 1/4" mesh vents allow embers to enter your attic — which is how many homes ignite. Retrofit vents that meet ASTM E2886 cost $20-50 each and can be installed in an afternoon.
3. Defensible space: A cleared, noncombustible zone within 5 feet of your home (Zone 0), thinned vegetation from 5-30 feet (Zone 1), and managed fuels from 30-100 feet (Zone 2). In Durango's ponderosa pine environment, this is especially critical.
4. Eaves and soffits: Open eaves are ember traps. Enclosing them with noncombustible materials eliminates one of the top ignition pathways.
5. Siding: Noncombustible or ignition-resistant exterior cladding. This is often the most expensive upgrade, but fiber cement siding lasts 30-50 years and is a strong signal to insurers.
6. Decks: Wood decks attached to homes are a direct ignition pathway. At minimum, maintain a clean deck free of debris and combustible items. At best, rebuild with ignition-resistant composite or noncombustible materials.

You don't have to do everything at once. A professional assessment can help you prioritize based on your specific property, your budget, and which upgrades will have the biggest impact on your insurability.

Step 6: Document Everything

This cannot be overstated. Every upgrade you make, every tree you thin, every vent you replace — document it.

• Before and after photos with timestamps
• Receipts and invoices for all materials and labor
• Professional assessment reports that evaluate your property against recognized standards
• Maintenance records showing ongoing defensible space work

This documentation serves three purposes: it supports an insurance appeal under HB25-1182, it demonstrates compliance or progress toward CWRC standards, and it protects your property value if you ever sell.

Step 7: Get Involved in Community-Level Mitigation

Here's something most homeowners miss: HB25-1182 requires insurers to consider community-level mitigation, not just what you've done on your own property. If your neighborhood, HOA, or community has a Community Wildfire Protection Plan (CWPP), participates in Firewise USA recognition, or has invested in community-wide fuel reduction, that should be factored into your risk score.

If your community doesn't have these programs, consider advocating for them. The Colorado State Forest Service offers resources and sometimes matching funds for community wildfire mitigation through programs like HB22-1101. A Firewise USA designation for your neighborhood could benefit every homeowner's insurance situation, not just your own.

What's Coming Next

Colorado's approach to wildfire and insurance is still evolving. HB25-1302 attempted to create a state reinsurance program to stabilize the market and fund roofing grants — it passed the House but failed in the Senate in 2025. Similar legislation is likely to return.

Meanwhile, the CWRC takes effect locally on April 1, 2026, which means new construction and major renovations in WUI zones will be built to higher standards. Over time, this should improve the overall risk profile of Colorado communities and attract more insurers back to the market.

But "over time" doesn't help you today. The homeowners who will weather this insurance crisis best are those who take action now: harden their homes strategically, document their work thoroughly, and use the new tools in HB25-1182 to hold insurers accountable.

The Bottom Line

Getting dropped by your insurance company feels like a verdict. It isn't. It's the beginning of a process — one that Colorado law now gives you real tools to navigate.

The combination of the CWRC, HB25-1182, and a growing number of mitigation-aware insurance carriers means that hardening your home isn't just about fire safety anymore. It's about financial protection, property value, and keeping your family insurable in a state where wildfire risk isn't going away.