Wildfire Risks Persist Despite Lower Insurance Premiums in Mountain West
The Mountain West region, encompassing states like Colorado, Utah, and Wyoming, continues to face significant wildfire risks despite a softening property insurance market. Recent wildfires, such as Utah's Babylon and Cottonwood fires and Colorado's Aspen Acres Fire, highlight the ongoing threat. While insurance premiums have decreased, coverage gaps remain a concern, with some properties receiving sublimits that may not fully cover wildfire losses. For example, a $10M building might only have $5M in wildfire coverage, leaving a substantial shortfall. Additionally, high deductibles and exclusions further complicate coverage adequacy. Property owners are urged to review their policies and ensure valuations reflect current rebuilding costs, which are rising due to inflation and labor shortages. Underwriters are increasingly scrutinizing wildfire mitigation measures, such as defensible space and access to water sources, to assess risk. 
