Insurance
Home›Insurance›Property Insurance›FEMA approves Colorado disaster aid, leaving homeowner…
FEMA approves Colorado disaster aid, leaving homeowner help uncertain
FEMA has approved Public Assistance only for the June 27 to July 29 wildfires, flooding and mudslides, so displaced homeowners still face rebuilding costs that would otherwise fall under Individual Assistance.
FEMA has announced that federal disaster assistance is available for Colorado recovery after wildfires, flooding and mudslides from June 27 through July 29, 2026, with Public Assistance funding approved on a cost-sharing basis for eligible government entities and certain nonprofit organizations.
The declaration covers emergency work and repairs or replacement of damaged public facilities in Custer, Dolores, Ouray and Pueblo counties, and FEMA has named a federal coordinating officer for the recovery operation. FEMA said additional counties could be added later if Colorado requests it and further damage assessments support that move.
However, FEMA's approval so far includes Public Assistance only, not Individual Assistance. Housing and recovery costs for displaced homeowners and renters, which Governor Jared Polis requested for Pueblo and Custer counties, are therefore not covered by the currently available federal funding, and adding Individual Assistance depends on additional damage assessments and a further state request.
The imbalance matters given how heavily the fires hit local residents. Insurance Business notes the Aspen Acres Fire burned more than 102,000 acres and destroyed 324 homes, and it says homeowners insurance premiums in Colorado rose roughly 100% between 2018 and 2024 to an average annual premium of about $4,086, with some mountain and foothill ZIP codes topping $7,500 a year.