In early 2024, American National Insurance made the decision to leave the homeowners insurance market in Colorado and several other states, due to rising costs and challenges in maintaining affordable policies. With Colorado’s increase in natural disasters, like wildfires and hailstorms, insurers are finding it difficult to balance coverage needs with financial stability. For many homeowners, this news has raised questions about next steps and the options available to keep their homes protected.

States Affected by American National’s Exit

Alongside Colorado, American National is also leaving California, Louisiana, Arkansas, Minnesota, Oklahoma, South Carolina, South Dakota, and Washington. This decision to fully exit the homeowners insurance market by May 2024 was prompted by significant underwriting losses over the last decade, as reported by Insurance Journal. Like other insurers, American National has reassessed their presence in high-risk states to prioritize sustainability.

Why Insurers Are Reconsidering Coverage in Colorado

Colorado’s beautiful, but increasingly wildfire- and storm-prone, environment has created a unique set of challenges for both homeowners and insurers. As claims rise from these natural events, the financial risks for insurers have grown, leading companies to either adjust premiums significantly or, in cases like American National, step away from offering coverage altogether. For homeowners, this change means finding new options in a market that’s experiencing increased demand.

Steps Colorado Homeowners Can Take

If you’re impacted by this change, there are still ways to make sure you’re covered and protected. Here’s how to start:

1. Begin Your Search Early: To ensure there’s no gap in your coverage, begin looking into alternative insurers well before your American National policy expires. This allows you time to compare and find coverage that fits your needs.
2. Connect with an Independent Insurance Broker: Working with a local, independent broker, like Castle Rock Insurance, is one of the best ways to explore options from multiple carriers and find the right fit. Independent brokers know the Colorado market well and have access to a variety of policies, giving you more flexibility and personalized recommendations.
3. Look into Bundling Opportunities: Many insurers offer discounts when you bundle your homeowners and auto policies, which could help make premiums more manageable while simplifying your insurance plan.

American National’s decision to leave highlights some of the unique challenges Colorado residents face, but with the help of a knowledgeable broker, you can still find great coverage options that fit your needs. For help securing a policy that’s tailored to your home, reach out to Castle Rock Insurance, where they’ll work with you to navigate the changing market and get the protection you need.