Insurance premiums can change fast after a wildfire, and that shift can make your monthly mortgage payment jump without warning. If you live in Superior, you’ve seen how the Marshall Fire reshaped risk, rebuilding, and insurance conversations across the area. In this guide, you’ll learn how wildfire impacts the insurance and tax pieces of your PITI, how to recalculate your payment, and what steps help you plan with confidence. Let’s dive in.
PITI basics for Superior homeowners
Your monthly payment usually includes four parts: principal, interest, taxes, and insurance. Principal and interest stay the same unless you refinance or change loan terms. Taxes and insurance can move, especially after a disaster.
- Principal and interest: These are set by your loan amount, rate, and term. They don’t change unless you change your loan.
- Taxes: Boulder County calculates property taxes using actual value, assessment rates, and local mill levies. Review the county’s tax formula to estimate your share accurately using your property’s details. Boulder County’s tax calculation guide explains how the numbers work.
- Insurance: Your annual homeowners premium divided by 12. After wildfire, premiums can rise and coverage terms can change.
How wildfire changed the insurance picture
The Marshall Fire burned thousands of acres and destroyed over a thousand structures across Louisville, Superior, and unincorporated Boulder County. It raised awareness of wildfire risk and the real cost to rebuild. For background on the event and its local impact, see the Marshall Fire quick response report.
Across Colorado, homeowners have faced steep premium increases and more nonrenewals as insurers respond to wildfire exposure, hail and wind losses, and higher rebuild costs. Expect more underwriting scrutiny and the possibility of higher deductibles or policy changes in higher-risk areas. The Colorado Sun’s reporting on nonrenewals and premium pressure outlines these trends.
After the Marshall Fire, many owners also discovered they were underinsured relative to true replacement costs. Review your dwelling limit and make sure it reflects current rebuild pricing. Colorado regulators highlighted widespread underinsurance among fire survivors. See the CPR report on underinsurance after Marshall.
Coverage options if your policy changes
- Standard homeowners insurers: Many properties are still insurable in the admitted market, though premiums and deductibles can shift. Ask for replacement cost coverage details, wildfire deductibles, and additional living expense limits.
- Surplus lines carriers: If standard insurers decline a property, a broker may place coverage in the surplus market. Terms can differ and may cost more.
- Colorado FAIR Plan: As a last resort, the state’s FAIR Plan offers basic property coverage for homes that cannot secure private insurance. Policies are limited and may not be replacement cost. Learn more on the Colorado FAIR Plan overview.
- Force-placed insurance: If coverage lapses, your lender can buy insurance to protect the property. It is typically much more expensive and offers limited protection. Federal rules require notice and timelines. Review borrower protections in the CFPB regulation for force-placed insurance.
How taxes can change after a rebuild
Property taxes reflect your assessed value and local mill levies. Rebuilding can trigger revaluation, and values may differ from pre-loss numbers. During recovery, local governments have offered targeted relief. For example, Boulder County extended a use tax rebate deadline tied to Marshall Fire rebuilds. See the county’s update on the use tax rebate. Your tax portion of PITI typically adjusts on the county’s reappraisal cycle or with new construction.
Recalculate your Superior PITI in 4 steps
- Principal and interest
- Use your loan amount, interest rate, and term to determine monthly P&I.
- Taxes
- Estimate annual property tax using Boulder County’s method, then divide by 12. Start with actual value, apply the assessment rate, then multiply by your total mill levy. The county’s guide walks through each step. Review the tax calculation method.
- Insurance
- Take your annual premium and divide by 12. After a wildfire, get new quotes early. If you cannot secure private coverage, research FAIR Plan eligibility.
- Add the parts
- PITI equals monthly P&I plus monthly taxes plus monthly insurance. Add HOA dues or mortgage insurance if they apply.
Quick scenarios
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Baseline example: $800,000 purchase, 20 percent down, $640,000 loan at 6.5 percent. Monthly P&I is about $4,046. If actual value is $800,000, the example calculation in Boulder County’s method yields about $4,942 in annual taxes, or $412 per month. With a $3,500 annual insurance premium, that is $292 per month. Estimated PITI is about $4,750.
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Insurance spike example: If the annual insurance premium rises to $7,000 (about $583 per month), PITI becomes roughly $5,041, an increase of $291 per month. This shows how insurance changes can drive your monthly total.
These scenarios are illustrative. For accuracy, use your current quotes, your property’s assessed data, and your exact loan terms.
Budget moves that help you plan
- Update dwelling limits and rebuild costs. Confirm your policy reflects current replacement cost, not just market value. Underinsurance was common after the Marshall Fire.
- Get quotes early in the process. When buying, request an insurance quote before you write or during inspection. Ask about wildfire deductibles, smoke coverage, and additional living expense limits.
- Document mitigation. Superior and Boulder County offer grants and recovery assistance that support home hardening and resilience. Document your work and keep invoices and inspection results. Explore current offerings on the Town of Superior’s recovery and assistance page. Insurer discounts vary and are not guaranteed, but documentation can help underwriting decisions.
- Prevent coverage lapses. Keep your lender updated if you change carriers to avoid force-placed insurance.
- Plan your tax escrow. Watch reappraisal timelines and new-construction valuations. The Town of Superior publishes budget and mill levy information that feeds into your total tax rate. Review the Town of Superior budget page for local context.
Local resources to keep handy
- Boulder County property tax calculation overview and assessor tools.
- Town of Superior budget and mill levy references.
- Town of Superior recovery and assistance programs for mitigation and rebuild support.
- Colorado FAIR Plan information for last-resort coverage.
- CFPB force-placed insurance rule for borrower protections.
If you want a clear, numbers-forward plan for your next move in Superior, let’s talk strategy, quotes, and timing. Reach out to Emelie Griffith for local guidance and a tailored PITI game plan.
FAQs
Will my mortgage payment go up if insurance increases in Superior?
- If you escrow taxes and insurance, your servicer will raise the escrow contribution to cover a higher premium, which increases your total monthly payment. If you do not escrow, you pay the higher premium directly. Servicers must send notices before placing costly force-placed insurance.
What can I do if my insurer nonrenews me after a wildfire?
- Shop other admitted carriers, ask a broker about surplus lines options, and review the Colorado FAIR Plan as a last resort. Prepare documentation of mitigation work, inspections, and full property details to help secure replacement coverage.
How can I lower the insurance portion of my PITI in Superior?
- Consider higher deductibles if appropriate, complete and document mitigation, request multiple quotes annually, and keep dwelling limits aligned with replacement cost. Discounts for mitigation vary by insurer and are not guaranteed, but the documentation can help underwriting.
Will rebuilding change my property taxes in Superior?
- Yes, your assessed value can change with a rebuild, which affects taxes. Boulder County has offered targeted relief such as use tax rebates tied to Marshall Fire rebuilds. Watch reappraisal cycles, permits, and appeal windows to plan your escrow.
What happens if my homeowners policy lapses?
- Your mortgage servicer can place force-placed insurance after required notices. It is typically far more expensive and provides limited protection, so keep your coverage continuous and update your lender when you switch carriers.
