Two factors have been identified as the driving force behind sharp increases for homeowners insurance in recent years: Summit County’s designation as a high-risk area for wildfires and the national trend that shows wildfires are growing in intensity.

Breckenridge officials heard from Red, White and Blue Fire Protection District wildfire division captain Matt Benedict at a Nov. 13 Breckenridge Town Council meeting regarding some of the struggles locals have experienced and what the district is doing to help.

Colorado’s Division of Insurance estimated insurance costs increased more than 50% across the state between 2020 to 2023. Benedict said Summit County is contending with home value spikes, construction cost increases and a “red zone” designation on maps that determine wildfire risk, all of which impact insurance costs.

“Some of our big properties have seen upwards of 1,000% increases,” he said. “It’s not unheard of.”

Council member Dick Carleton said he had heard of renters living in some of the town’s older multi-unit complexes struggling with homeowner association fees skyrocketing due to rising insurance costs.  

“The numbers I’m hearing are astronomical,” he said.

Benedict said he heard of homeowner association fees doubling or tripling recently, noting wildfire risk’s impact on insurance is “nearly bankrupting some of the (homeowner associations).”

Since insurance is a private industry and fire districts are public agencies, Benedict said there are roadblocks to finding solutions. He explained laws prevent public and private entities from interacting too much. He said officials hope to work on solutions with the state and plan to work on other types of remedies locally.

“We’re going to be working with (Summit’s) Wildfire Council to try and tell a better story … trying to figure out a better marketing strategy for the homeowners, but really for the insurance companies,” He said. “(We want to figure out) how to move this forward and get insurance companies to want to be here and assume that risk.”

Benedict said recent code changes Breckenridge implemented made a difference in the community’s participation and understanding of “firewise practices.” The changes to town code adjusted permits for residents who want to create defensible spaces, which are areas designed to reduce the risk of fire on their property.

He said previously there was some confusion among residents surrounding the permit process for creating defensible space and about what actions they could take to create it. He added there was a “gigantic” increase in permit holders this year.

Clif Cross, a community development planner with Breckenridge, said the town processed over 170 permits this year and has been able to aid in implementing defensible spaces on private property, town-owned property and homeowner association-owned open spaces.

“We’ve seen a lot of people take advantage of this … to remove that combustible material and hopefully impact their insurance premiums,” he said.

Some insurance providers, including USAA and AAA, provide discounts for those who are using verified “firewise practices.”

Benedict said the most substantial change the district has seen this year is increased interest in permits among property managers.

“They’ve become kind of our force multiplier this year, and that’s a big deal for us,” he said. “We’ve spent a lot of time educating them, but they’re motivated because of the insurance issues.”

Mayor Kelly Owens wondered what steps a resident should take if they got denied fire insurance. 

Benedict said the fire district has a team of firefighters who do insurance-related inspections. Residents who are denied insurance can ask them for help, he said, and the fire district can send a report to help encourage insurers to reconsider.

He said the district is hoping to make “firewise practices” as accessible as possible and is offering a loaner program where people can borrow tools they need to take actions like reducing things that can act as fuel for fires on their property.