PRIVATE CLIENT
Protecting Your Financial Wellness from Underinsurance
Are you fully covered, or is underinsurance putting your financial security at risk?
California’s wildfires have been devastating, destroying homes and lives while reshaping entire communities. Unfortunately, Colorado isn’t far removed from these risks. We’ve seen fires like the Marshall and Cameron Peak devastate our landscapes, and it’s a stark reminder that we need to prepare now for future risks. The $140 billion in insured catastrophic losses in 2024—with roughly 75% caused by severe storms—underscores the growing threat to homeowners.
One of the most important ways to protect yourself and your financial wellness is to make sure you aren’t underinsured. At CCIG, we have access to a wide variety of insurance carriers. It's our duty, with our client's best interests at heart, to connect clients with insurance products that match their unique needs. We collaborated with our partners at PURE Insurance to share the unique strengths of their insurance products, along with some expert insights and tips on proactive ways to ensure you have adequate coverage if the unthinkable happens.
The Growing Danger of Underinsured Homes
Being underinsured as a homeowner can have devastating consequences. A recent study found that around 74 percent of policyholders affected by the Marshall Fire were underinsured, and 36 percent were severely underinsured.
With rising construction costs, supply chain delays, and increasingly severe weather events, the gap between a home’s insurance coverage and its true replacement cost is growing. In the aftermath of disaster, many homeowners have discovered their policies didn’t account for updated building codes or inflation, leaving them tens or even hundreds of thousands of dollars short of what they needed to rebuild. PURE’s guaranteed replacement cost coverage—or the option to receive a cash settlement at policy limits—helps bridge this gap, ensuring full replacement regardless of cost fluctuations.
In 2023, one in 42 PURE members suffered water damage, the most frequent cause of loss, with an average cost of $90,000 per claim. Proper coverage isn’t just about protecting a home; it’s about safeguarding a family’s financial stability and future, which is why it’s critical to regularly review policies with your insurance advisor.
The Path Forward
Protection Through Prevention
High-net-worth (HNW) carriers do more than just step in when a loss occurs—they actively help prevent it. These carriers offer personalized loss prevention strategies tailored to the unique risks of luxury homes and valuable assets. From home inspections to risk assessments, they work closely with clients to identify potential vulnerabilities and provide solutions to mitigate them.
Services often include recommending or coordinating with experts to install items like:
- State-of-the-art security systems
- Fire suppression technology
- Water leak detection devices
For clients with valuable collections, HNW carriers can offer guidance on proper storage, transportation, and climate control to reduce risk. By taking a proactive approach, these carriers help protect not only the financial value of high-end assets but also the emotional and personal investments clients have made in their homes and belongings.
Leverage the Power of Partnerships
HNW carriers specialize in providing thoughtful, customized coverage for unique and valuable properties, from architecturally significant homes to cherished collections.
These carriers go beyond standard policies, offering tailored solutions like extended replacement costs, risk management advice, loss prevention strategies, and specialized adjusters who understand the intricacies of high-value claims.
“The relationship between PURE and CCIG is built on trust, collaboration, and mutual respect,” said Lane Hanson, CPRIA Colorado Territory Manager with PURE Insurance. “CCIG acts as the bridge between PURE and its Members, ensuring that both parties understand each other’s needs and expectations. This partnership is essential in delivering the right solution that benefits everyone involved.”
Real-Life Stories: PURE in Action
Marshall Fire:
Three years after the Marshall Fire, PURE members saw total settlements exceeding twice their policy limits. However, they benefited from unlimited loss-of-use coverage, allowing them to maintain their standard of living throughout the rebuilding process. This experience highlights the importance of guaranteed replacement cost coverage and the support provided by PURE.
Cyber Claims:
- Patrick B., a PURE member, was scammed into withdrawing $30,000 after a fake cybersecurity alert. Thanks to PURE Starling™, his loss was reimbursed, less the deductible, and the dedicated support of his Member Advocate made all the difference.
- Another member discovered a fraudulent email that had redirected a nearly $1 million wire transfer to a Hong Kong account while closing on a new home. PURE Starling reimbursed the member, demonstrating the value of its comprehensive cybercrime coverage.
Building a Financially Secure Future
Whether it’s protecting your home, vehicles, or digital footprint, high-net-worth carriers provide tailored solutions designed to safeguard your financial wellness and implement personalized programs designed to manage each client’s unique risks.
At CCIG, we are committed to ensuring you have the right coverage, avoiding the risks of being underinsured, and making the strongest placements with the right carriers to provide peace of mind and comprehensive protection for your unique needs.
If you have any questions about your coverage, please reach out to me at Will.Steck@thinkccig.com.