The 2021 Marshall Fire destroyed more than 1,000 homes in Boulder County and exposed a brutal truth about Colorado homeowners insurance: many policies were thousands — sometimes hundreds of thousands — of dollars short of what it actually cost to rebuild.
The dwelling limit problem
Your "dwelling coverage" should equal what it would cost to rebuild your home from the foundation up at today's Colorado construction prices. Most homes in the Marshall Fire were insured at numbers set 5–10 years ago, before construction costs surged 30–60%.
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 — pays your rent and living costs while your home is rebuilt. After Marshall, many families needed this for 18+ months.
- 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 by your home's square footage. If you get a number under $250–$300 per square foot, your policy may be dangerously underinsured for a Colorado rebuild. Request a free policy review.