‘There is a ripple effect from California’: Colorado homeowners dropped by insurer despite exceeding fire protection standards — why those in ‘high catastrophe’ states should get ready

Are insurance companies considering mitigation efforts?

Despite exceeding fire protection standards, the Hoogendoorns are still losing coverage.

"They have an A-plus," Jess Moore, wildland project coordinator at Evergreen Fire Rescue, told CBS.

Moore knows the Hoogendoorns and is familiar with the work the couple has done on their home and in their neighborhood.

The couple worked with local fire officials, cleared vegetation and hardened their home against fire — yet their insurer still deemed them too risky to cover.

So, why is this happening?

Insurance companies use complex risk models — often based on broad regional data rather than property-specific inspections. Many rely on satellite imagery, fire hazard maps and historical loss data to determine risk, meaning individual mitigation efforts may not always factor into their decisions.

Colorado Insurance Commissioner Michael Conway has pushed for insurers to better incorporate homeowner mitigation efforts into their pricing and coverage decisions.

"Insurers need to make it clear to consumers the value of those mitigation efforts. And insurance companies need to ensure that the predictive models that they are using meaningfully incorporate the mitigation that homeowners, communities, and the state are investing in," he told CBS.

While California law now requires insurers to factor in mitigation when setting rates, Colorado has yet to enact similar regulations. Lawmakers are considering a bill that would require insurance companies to disclose discounts for mitigation efforts.

However, that’s little comfort to the Hoogendoorns, who are being dropped now, with limited options for new coverage.

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How to prepare your home for catastrophes

As extreme weather events increase, preparation is more important than ever. How you prepare will depend primarily on the risks in your area. The Federal Emergency Managemnt Agency (FEMA) National Risk Index features an interactive map that shows the main risks by geographic location.

The highest-risk wildfire areas include California, Florida, Arizona, Nevada, Colorado, New Mexico and Utah. To reduce wildfire risk, clear vegetation within 30 feet of your home, clean gutters and install fire-resistant materials like metal roofs and tempered glass. Local fire departments can offer risk assessments and mitigation guidance.

Hurricane-prone areas include the Gulf Coast, all of Florida and the Atlantic Coast from Florida to Maryland. The National Weather Service recommends covering all windows with either storm shutters or marine-grade plywood and following all evacuation orders during a hurricane. Elevating appliances can help protect them from storm surges. In hurricane-prone areas, raising your home on stilts — though costly — can reduce flood damage.

Flooding is one of the most common natural hazards, whether from coastal storms or overflowing rivers. To minimize your losses in a flood, FEMA recommends raising your home if possible and using flood-resistant building materials, such as non-paper-faced gypsum board and terrazzo tile flooring. Sealing your home against flooding can help protect it and may decrease your risk in the eyes of flood insurance companies.

Even with preparation, homeowners in high-risk areas are at the mercy of shifting insurance policies. The Hoogendoorns’ experience is a warning: mitigation doesn’t always guarantee coverage.

As insurers reassess risk models, homeowners must take action to protect their properties — and ensure they have the coverage they need before disaster strikes.