Victims of the recent Colorado blaze, which was the most destructive wildfire in the state\u2019s history, may soon learn that rising construction costs have increased the cost of rebuilding beyond what their insurance coverage allows.<\/p>\n\n\n\n
About 1,000 homes were destroyed in Colorado\u2019s Marshall Fire, which destroyed homes and businesses in the suburbs between Denver and Boulder. Losses from the wildfire are expected to reach $1 billion.<\/p>\n\n\n\n
While most homeowner victims are believed to have insurance, observers say many may not have enough to cover the extent of their losses.<\/p>\n\n\n\n
\u201cThere are individuals in both impacted areas that are either uninsured or did not have adequate coverage in place to compensate for their losses,\u201d Erin Collins, a senior vice president at the National Association of Mutual Insurance Cos., told The Wall Street Journal<\/em>.<\/p>\n\n\n\n In general, about two-thirds of fire victims nationally tend to be underinsured, according to United Policyholders surveys.<\/p>\n\n\n\n Many homeowners are unsure of how much coverage they need. Also, some may opt for cheaper policies to keep annual premiums lower.<\/p>\n\n\n\n