Coloradans got $5 million more in insurance claims this year thanks to free help from the state

The Colorado Division of Insurance (DOI) released a report Wednesday showing it recovered $26.4 million for Coloradans through insurance claims between July of 2023 to June 2024. It’s an increase of $5 million from the year prior.

Vincent Plymell, the Assistant Commissioner for Communications and Outreach at DOI, said the roughly 20 percent increase is a result of better visibility by consumers.

“Over the last couple of years we have been able to do a better job of getting the word out about the Division of Insurance,” Plymell said. “[After] the Marshall Fire, people became aware that there was someplace they could turn to when they had questions.”

The team received nearly 7,000 complaints and inquiries over the course of the most recent fiscal year with the largest chunk of money recovered coming from homeowner’s insurance complaints at $10,601,710. 

“I think in previous years, home insurance was something maybe put on the back burner for many folks,” Plymell said. “Now [it] has been in the news, and so I think people have a very heightened awareness and are not willing to just take what happens when they file a claim. They're willing to ask questions and turn to us and file complaints with us.” 

Recovered funds obtained by the DOI go to consumers in situations where an insurance company has either improperly denied a claim, hasn’t paid the correct claim amount, or has delayed payment. 

“You can imagine people are upset when their claim is denied, especially if they feel that it's not in line with their policy,” Pylmell said. “We're helping consumers fight for those claims and recovering money for them.”

One such payout came last summer when a local apartment complex was damaged by hail. The original claim was filed on July 24, 2023, but by November last year, the insurance company still hadn’t paid the $2.65 million owed. The owners filed a complaint with the DOI which was then able to secure the payment from the company within the month.

“Hail is one of the biggest causes for claims in homeowners insurance in Colorado, and every year Colorado is near the top [of the list] in terms of hail damage in the country,” Plymell said. 

Also at the top of the list for claim causes: wildfires. Plymell said one homeowner dealing with the aftermath of the 2021 Marshall Fire was struggling to get their insurance company to pay for resulting smoke damage. They filed a complaint with DOI in November 2022 after the insurance company wouldn’t budge. In the end, Plymell said the department was able to secure an additional $122,197 to properly clean and remediate the smoke damage.

Coloradans dealing with similar issues related to the Marshall Fire can still get help from the state. “If they're having problems with their insurance company – it's not being paid, it's not being dealt with, if they're getting the runaround, we want to hear from them,” Plymell said.

But it’s not just homeowners who can benefit from DOI’s work. The Consumer Services Team also deals with medical insurance and life insurance issues. “The complexity with health insurance in terms of how things are covered has complicating factors that make for a lot more questions and complaints,” Plymell said. This year the team secured payment for a $48,000 medical bill owed to a Coloradan by a travel insurance company. 

Plymell said regardless of the issue, question, or concern, when it comes to insurance Coloradans should take advantage of the services provided by DOI.

“People just think, ‘well, it's insurance. What are you going to do?’ And they throw up their hands and it's like, Nope. You can call us and ask questions,” he said. “We can't fix everything. Of course, but it doesn't cost you anything to ask your questions to find out more.”

The DOI can be reached by calling 303-894-7490 or online.