State Farm News Release, Summer 2004

Program Goals:
While wildfire risk has always been a part of the Colorado landscape, it has become an increasing hazard over the last several years due to drought conditions, record low snow pack, fuel buildup and growing development in the wildland urban interface. To address these concerns, State Farm created a program that will be implemented in Arizona, Nevada, New Mexico, Utah, Colorado, and Wyoming. It will:

1. Protect the lives, homes and personal property of our customers.
2. Create a safer environment for the fire and emergency officials who respond to wildfires.
3. Educate our customers who live in the interface areas about the dangers associated with wildfires and how they can better protect their property and themselves.
4. Reduce the potential for and severity of future financial losses caused by these types of tragedies.

State Farm’s goal is not to lose any customers as a result of the program.

Wildfire Program Details:
Over the next three years, 24,000 to 26,000 homes within the states of Arizona, Nevada, New Mexico, Colorado, Utah, and Wyoming will be surveyed. The surveyors will conduct an outside inspection of the home to identify whether or not any additional steps need to be taken to help better protect the property from future wildfires.

The homes were selected because they are in the highest hazard wildfire prone areas. This was determined by a combination of factors: vegetation or fuels, topography (slope and aspect), population density, lightning strike density, and the proximity of roads and railroads.

Each homeowner in the areas State Farm has identified as part of the program will receive a letter approximately one to two weeks prior the survey, making him or her aware that it is going to take place. Because the survey is exterior only, the homeowner is not required to be on site

During the survey, the vendor will identify possible hazards on the property. If the steps necessary to fix the hazards are minor in nature, we will send a letter to the customer approximately two to four weeks following the inspection, listing the items to address and notifying the homeowner that he or she has up to two years to correct those items.

If the property requires significant measures to address the hazards, we will send the customer a letter asking that he or she contact local fire officials to arrange to have an expert visit the property and develop a plan to better protect his or her property. The letter will also advise the customer that he or she will have 18-24 months to obtain the plan and complete the items noted on the plan. Any charges assessed for the help of a local fire or emergency management official is the responsibility of the customer.

Our customer’s State Farm agent will follow-up to verify that the recommended measures are completed or are underway. If a homeowner chooses not to complete these safety measures, putting his or her property and the lives of fire officials at greater risk, we would look at options including the non-renewal of his or her property.

QUESTIONS AND ANSWERS:

Q. Is State Farm surveying all of the homes you insure in the wildfire areas?
A. No, we are surveying only a small percentage of the homes we insure in the wildfire areas. We are concentrating on those homes in the highest hazard wildfire areas in Arizona, Nevada, New Mexico, Colorado, Wyoming and Utah.

Q. Will State Farm cancel the insurance of customers who refuse to complete the recommended mitigation work?
A. We hope that working with these customers in the highest hazard wildfire areas over the period of 18-24 months will encourage them to take the appropriate action on their property. However, if some refuse to do any work, putting his or her property and life at risk, as well as the lives of local fire officials, we would look at options to address the situation, including non-renewal.

Q: Who will pay for any charges assessed by local fire or emergency officials asked by a State Farm customer to survey the property and create an extensive plan to better protect the property?
A: Any payments for these or other related services would be the responsibility of our customer.

Q. What if one of your customers cannot afford to do the work?
A. There are many national, state and local grants and cost-share programs that may be able to provide funds to homeowners or communities. Many of these can be found by calling the local district office of the state forest service or a local fire authority. These offices also have lists of FireWise contractors who can be contacted regarding their services.
For additional information about the program, please contact Steve Niccolai at (970) 395-5840.