When Dave Baron and his wife Kim Meyer closed on their new home on Mulberry Street in Louisville on Aug. 31, they believed they had all the insurance they would need should catastrophe strike.
Four months later, catastrophe came in the form of a 6,000-acre winter wildfire fueled by hurricane-force winds. Their $1.3 million home, with its hardwood floors, decorative arches, finished basement and “really cool metal banisters,” was destroyed.
To compound the tragedy, Baron and Meyer now are finding their insurance coverage wasn’t enough. The family’s policy will only cover about a third of the construction cost to rebuild the home, Baron said, and he blames the insurance company for underestimating exactly how expensive it is to build in today’s market.
“We are not able to afford at this time to move back into a home that we lost in a community we love,” Baron said. “We want people to know this is a rampant problem in the community. They’re setting their rebuild limits extremely low and it’s going to bankrupt people who are trying to rebuild their homes.”
It’s too early to know how many of the 1,084 homeowners who lost their houses in the Marshall fire were underinsured, but there’s been enough noise from those who believe they are that elected officials are paying attention. Homeowners have attended local government meetings to ask for help. They’ve called the Colorado Division of Insurance. They’re forming groups to fight together.
Those in…
