Fire and ice [The Pueblo Chieftain, Colo.]

June 19--Home insurance rates are rising in Southern Colorado and the rest of the state but not solely as the result of wildfires, an insurance industry expert says. Hail remains an even bigger driver in payouts.

"The way insurance companies set their premiums is really based on patterns and trends over longer periods of time, really years," said Carole Walker of the Rocky Mountain Insurance Information Association. "One wildfire doesn't have a direct affect on what people pay in insurance, particularly if they don't live in a wildfire area."

Individual insurance companies use their own formulas for pricing each homeowner's policy, Walker said. The factors they consider include a home's value and geographical location (local, region and state), the surrounding terrain and claims history, she said.

Homeowners in wildfireprone areas already pay higher prices, she said. Also, many insurance firms now mandate homeowners in such areas take steps to mitigate their risk as much as possible (by clearing trees and removing dead shrubs and needles) or face a cancellation of coverage, she said. Along the Front Range of Colorado, hail damage remains a big driver of property insurance costs, she said. Last summer, a major hailstorm that hit many areas of the Front Range led to more than $320 million in auto and home payouts, she said.

In contrast, the 500 homes destroyed in the Black Forest Fire may result in much smaller total payouts, she said. The destruction of much of the Royal Gorge Bridge & Park is expected to result in millions of dollars of insured losses.

A preliminary total damage estimate from the Black Forest wildfire remains to be calculated, she said. Her agency will work with insurance companies over the coming weeks to prepare an initial assessment, she said.

"We are seeing homeowner's insurance premiums rise throughout Colorado because we've been in this cycle of catastrophes, year after year of damaging hail and this pattern of wildfire," Walker said.

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