HOA Claims After Aspen Acres Wildfire: When Numbers Don’t Match
After the Aspen Acres Wildfire, many Colorado associations are running into the same problem: the insurance estimate arrives, and the numbers do not seem to line up with what contractors say it will actually cost to restore all the buildings and common areas.
From the association’s perspective, the claim can feel underpaid. From the contractor’s perspective, the scope or estimate isn’t being approved the way it was written. That gap is where many HOA wildfire insurance claims turn into an amount of loss dispute.
Appraisal is an unbiased, alternative dispute resolution process built into many insurance policies to resolve this kind of valuation disagreement. When coverage is accepted but the parties cannot agree on the amount of loss, appraisal focuses on the numbers: scope, quantities, and pricing.
Why HOA Wildfire Claims Are Different
HOA wildfire insurance claims are different from a single-home loss because of how the property is owned and constructed. An association often has:
- Multiple residential buildings
- Shared walls and common corridors
- Community buildings and amenities
- Site-wide systems and infrastructure
All of this has to be evaluated as one coordinated claim. Damage is often layered and not obvious during the first inspection. Smoke can move through attics and shafts, heat can warp materials that still look intact from the ground, and exterior improvements can be damaged by fire and firefighting activity.
This creates valuation challenges, such as:
- Phased repairs across many buildings
- Multiple adjusters and consultants over time
- Gaps between contractor scopes and insurer estimates
Our role is to stay on the valuation side: identifying property damage that is part of the claim, making sure the scope of loss is complete, and valuing that scope in a consistent way when there is an amount of loss dispute.
Common Areas That Affect the Claim Value
One of the first questions boards ask is which common elements belong in the wildfire claim and how they should be valued. Common area property damage can include much more than the clubhouse roof or a few trees.
Typical HOA and condo common areas that should be reviewed include:
- Clubhouses, fitness centers, pools, and community rooms
- Mail kiosks, maintenance sheds, garages, and storage buildings
- Entry monuments, signs, lighting, and gate structures
Outdoor improvements that are easy to overlook but can add up quickly include:
- Walking trails, pocket parks, and playgrounds
- Parking areas, drives, and sidewalks
- Retaining walls, perimeter and interior fencing, and railings
- Irrigation systems and landscaping that was scorched or destroyed
Common property should be evaluated separately from individual units because it is often built differently, with different systems and code requirements. For example, a clubhouse might have commercial-grade mechanical equipment, pool systems, or fire alarms that do not exist in a typical unit.
From a valuation standpoint, missing or lumped-together common-area items are a frequent reason contractor estimates and insurer estimates do not match.
To reduce future valuation disputes, associations can:
- Document each shared area with photos and notes
- Obtain contractor or vendor input for specialized items
- Keep common-area damage itemized, not lumped into unit repairs
Residential Buildings Within the Association
Even when buildings look similar from the street, wildfire and smoke can affect them differently. Evaluating HOA property damage at the building level is critical for accurate pricing.
For each residential building, inspections should address:
- Roof coverings, underlayment, gutters, and downspouts
- Siding, trim, soffits, fascia, decks, and balconies
- Windows, exterior doors, and garage doors
In condos and townhomes, shared elements need special attention:
- Party walls, stairwells, and common corridors
- Attics, insulation, and firewalls
- Shafts and chases that can carry smoke and heat
Wind direction, slope, and proximity to the fire can cause one building to have significant charring and smoke intrusion while another, built in the same phase, has lighter damage. If the scope of loss simply assumes that every building is the same, it can create problems later when a contractor discovers extra demolition or replacement is needed in specific structures.
From a valuation perspective, building-by-building documentation helps:
- Avoid relying on averages or rough allowances
- Clarify which buildings need full replacement versus selective repairs
- Support unit pricing and quantities that match actual conditions
When this level of detail is missing, the result is often a gap between what the association and contractor consider a fair price and what the insurer has allowed.
Smoke Damage Throughout Multi-Building Communities
Smoke is often the biggest driver of disagreement in HOA wildfire insurance claims. It does not move in straight lines, and it does not stop at unit boundaries.
Smoke pathways in multi-building communities can include:
- HVAC systems, ductwork, and shared ventilation
- Attics, crawlspaces, and wall cavities
- Common hallways, stairwells, and elevator shafts
- Mechanical rooms and utility chases
Within the same association, some areas may only need surface cleaning, while others require:
- Detailed cleaning and deodorization
- Sealing of surfaces before repainting
- Removal and replacement of porous materials like insulation, carpet, or certain finishes
When estimates are compared, one party may include basic cleaning and painting, while another includes larger sections of replacement. That difference in assumptions about smoke damage treatment is a common trigger for an amount of loss dispute.
A sound smoke evaluation looks at both visible residue and odor, including in concealed areas, so that remediation scopes and pricing can be compared on the same basis.
Shared Building Systems and Their Impact on Numbers
Shared systems are another reason Colorado HOA insurance claims are more complex than single-home losses. These systems can serve multiple buildings or the entire site, so any damage has a wide impact on valuation.
Key shared systems that should be reviewed include:
- Electrical distribution and panels serving multiple structures
- Fire protection systems, sprinklers, alarms, and emergency lighting
- Central HVAC equipment, boilers, or chillers
- Elevators, security systems, access control, and intercoms
- Standby generators and other mechanical equipment
Wildfire, smoke, and firefighting operations can affect these systems through:
- Heat damage to exterior components and conduits
- Corrosion or residue on sensitive equipment
- Water intrusion in shafts, rooms, and chases
Because shared systems link so many parts of the property, decisions about cleaning, repair, or replacement can swing the total claim value significantly. Coordinated estimating needs to show which costs apply to a single location and which are system-wide so that everyone understands how numbers are allocated across the claim.
Landscaping and Exterior Improvements
Many Colorado HOAs have significant investments in site features that are not buildings but still represent real property value. After a wildfire, exterior improvements can account for a large share of recovery costs.
Associations should look closely at:
- Mature trees, shrubs, and turf
- Retaining walls and rock features
- Perimeter fences, privacy fences, and screening
- Entry signage, monuments, and accent lighting
- Irrigation components and control systems
- Stormwater features, culverts, and drainage structures
- Walking paths, plazas, and parking lots
If these items are not documented clearly at the beginning, they can be left out of the initial estimate or valued with generic allowances that do not match actual repair costs. That is another way a claim that seems straightforward at first can turn into a valuation dispute later.
Developing a Comprehensive Scope of Loss
All of these pieces need to come together in a clear, organized scope of loss. In simple terms, the scope of loss is a detailed list of what was damaged, where it is, and how it will be repaired or replaced, with quantities and materials defined.
For HOA wildfire insurance claims, a complete scope should identify:
- Every affected residential building, numbered or labeled
- Community buildings, amenities, and detached structures
- Shared systems and mechanical rooms
- Exterior improvements, utilities, and landscaping
- Direct fire, heat, ember, and smoke damage, including likely hidden damage
Hidden or less-visible areas to consider include:
- Roof decking and underlayment below roofing
- Framing at decks, balconies, and exterior stairs
- Insulation and wiring in attics and concealed spaces
- Smoke residues behind finishes where demolition is needed
This scope becomes the foundation for every valuation conversation. If items are missing, under-quantified, or vaguely described, it is almost guaranteed that contractor estimates and insurance estimates will not match, which is exactly how an amount of loss dispute develops.
Why HOA Estimates May Differ
Even with good intentions on all sides, HOA wildfire estimates often come in far apart. Common reasons include:
- Different inspection dates capturing different stages of damage or early repairs
- Alternate repair approaches, such as repair versus full replacement
- Building code requirements that change repair methods or materials
- Different assumptions about smoke remediation and hidden damage
Colorado wildfire recovery can also be affected by:
- Labor shortages and regional demand for contractors and trades
- Material price swings and lead times
- Access challenges in mountain or rural communities
- Sequencing work across many buildings while residents still occupy units
From the association and contractor perspective, the claim can feel underpaid if key areas or realistic construction costs are not reflected. From the insurer perspective, some scopes may seem too broad or high compared to their guidelines or vendor pricing. When coverage is accepted but this type of valuation gap remains, an association may face a true amount of loss dispute.
Documentation Associations Should Maintain
Good documentation is one of the best tools for keeping valuation discussions grounded in facts. For HOA wildfire insurance claims, boards and managers should organize:
- Insurance policies and any applicable endorsements
- Building plans, site plans, and reserve studies
- Maintenance records, inspection reports, and roof reports
- Engineering or specialty consultant reports
- Drone or pre-loss photography, if available
Wildfire-specific documentation should include:
- Contractor estimates and detailed line-item breakdowns
- Smoke remediation or environmental reports
- Moisture mapping or fire investigation findings, where applicable
- Repair invoices and change orders as work progresses
Keeping organized notes from meetings, site walks, and emails with adjusters, contractors, and consultants can also help establish what was seen, recommended, and agreed to at each stage. When a claim becomes a valuation or amount of loss dispute, this documentation gives independent appraisers and, if needed, an umpire, a solid factual foundation.
When HOA Wildfire Claims Become Valuation Disputes
A valuation dispute generally arises when coverage for wildfire-related HOA property damage has been accepted, but there is still disagreement on either the scope of loss, the pricing, or both. The core question becomes: what is the correct amount of loss to restore the damaged property?
Many HOA and condominium wildfire insurance claims in Colorado are resolved through the insurance appraisal process, when the policy allows it.
In appraisal:
- Each side typically selects a qualified appraiser to evaluate the property damage and the competing estimates.
- The appraisers review the scope, quantities, and pricing and work to agree on the amount of loss.
- If the two appraisers cannot agree, they can involve a neutral umpire who helps reach a final number.
Appraisal is focused on:
- Scope of loss, including what is and is not damaged
- Reasonable repair or replacement methods and quantities
- Appropriate valuation of that scope based on construction costs
It is not focused on coverage decisions, HOA bylaws, or legal questions.
Colorado Claim Appraisers participate in appraisal as an unbiased, alternative dispute resolution resource. The process itself is designed so that neither side controls the outcome; independent appraisers and, if needed, an umpire determine the amount of loss based on the evidence.
Next Steps for Colorado HOAs After the Aspen Acres Wildfire
If your association’s wildfire claim feels underpaid, or if your contractor’s scope or estimate is not being approved and the numbers are far apart, your policy may allow you to use appraisal to resolve the valuation dispute.
To learn more about how appraisal works and how it compares to other options, see our education pages on the insurance appraisal process and HOA wildfire valuation. When you are ready for a claim review or want to discuss whether appraisal is appropriate for your situation, call Colorado Claim Appraisers at 800-233-5517 or request a claim review through our services page.
By keeping the focus on scope, quantities, and pricing, appraisal gives Colorado associations a structured, unbiased way to resolve amount of loss disputes after events like the Aspen Acres Wildfire.
Resolve Your HOA Valuation Dispute
If you are facing an amount of loss dispute, we are ready to review your claim details and explain your options clearly. At Colorado Claim Appraisers, we use our experience to help you pursue a fair and well-supported outcome. We will walk you through each step of the appraisal process so you understand what to expect. Reach out today so we can begin evaluating your claim and protecting your financial interests.