After a wildfire destroys many homes at once, rebuilding costs often rise. Contractors and materials are in short demand, code requirements may have changed since the house was built, and every lot needs debris removal at the same time. A dwelling limit set years ago, or based on a rough online estimate, can fall short by a wide margin.

Underinsurance is easier to prevent than to fix, but there are still options after a loss. The first step is understanding which separate pieces of coverage you actually have.

Coverage pieces to find in your policy

Dwelling
The main limit for rebuilding the house
Extended replacement cost
An endorsement that may add a set percentage above the dwelling limit
Ordinance or law
Helps pay for upgrades the building code now requires
Debris removal
Sometimes inside the dwelling limit, sometimes additional
Other structures
Detached garages, sheds, fences, barns
Personal property
Contents, often paid at actual cash value until replaced
Additional living expense
Rent and extra costs while displaced, usually with a time or dollar limit

Steps that can narrow the gap

  1. Get the complete policy

    Ask the insurer for a certified copy of the full policy, including every endorsement, not just the declarations page.

  2. Get an independent rebuild estimate

    A contractor or estimator working for you can compare actual rebuild costs with the insurer's figures.

  3. Claim every category

    Many owners leave money on the table by focusing only on the dwelling. Other structures, debris removal, code upgrades, trees and contents each have their own limits.

  4. Understand recoverable depreciation

    With replacement cost policies, part of the payment is often held until you actually rebuild or replace. Ask about deadlines for collecting it.

  5. Ask about state rules

    Colorado changed several homeowner insurance rules after the 2021 Marshall Fire, including provisions on contents and timelines. The Colorado Division of Insurance can explain how they apply to your claim.

  6. Consider professional help

    Public adjusters, who are licensed in Colorado and work for the policyholder for a fee, and attorneys can help with large or disputed claims.

Questions to put to your insurer in writing

  1. Does my policy include extended replacement cost, and by how much?
  2. How much ordinance or law coverage do I have, and what upgrades does it cover?
  3. Is debris removal included in the dwelling limit or paid in addition?
  4. How long do I have to rebuild and still collect replacement cost?
  5. Can I rebuild on a different lot or buy another home and still recover the full benefit?

Common questions

Is it too late to raise my limits if I haven't had a fire?
No. Ask your agent to recalculate your dwelling limit using current local construction costs, and ask about extended replacement cost and ordinance or law coverage.

General information for Colorado Springs, not a quote or professional advice. In an emergency, call 911.