Some Marshall Fire victims worry they won’t be able to afford to rebuild

BOULDER COUNTY, Colo. (KRDO) -- As families begin clean-up efforts following the Marshall Fire, many are now struggling with insurance companies and the cost of builders.

According to our Denver news partners, some residents in Louisville say they are hundreds of thousands of dollars underinsured because of high building costs.

The reason? Some of the families struggling bought insurance during the early 2000s when the cost of building a home was significantly cheaper.

9News spoke with Michael Lappin, who bought a home in the Cornerstone neighborhood in 2006. Since the fire, he's interviewed more than a dozen builders. However, the one he decided to go with gave him a quote of $125 more than what his insurance policy will cover.

"What that represents is a gap of approximately $600,000," Lappin told 9News. 

The Home Builders Association of Metro Denver told 9News rebuilding may cost between $300 and $350 per square foot for homes between 2,000 and 2,400 square feet, and that's just the cost of materials and labor.

Ted Leighty, the CEO of the Home Builders Association of Metro Denver, said a second look may increase the final square-foot cost when rebuilding begins.

Now, families are forced to decide if they can afford the building premiums or if they should take the insurance money and find a more affordable neighborhood.