(COLORADO) — California's largest insurer, State Farm, canceled 72,000 policies last February, 30,000 of which were homeowner policies. Now the state's insurer, used by many as a last result, called the California FAIR plan, will likely be overwhelmed by billions of claims it will receive over the coming days and weeks. In Colorado, where similar devastating wildfires have hit, insurance premiums have been rising significantly, and some smaller insurance companies are even pulling back from covering properties. "My heart just breaks for all my neighbors who have lost their homes and I hope their insurance companies pull through and that they can move forward and rebuild," said Kathy, who lives in California. Though California's wildfires may not directly impact Colorado's insurance premiums, the growing risk of such disasters will. "There should not be a direct impact on rates in Colorado due to the fires in California," explained Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. "That said, we have the same risk in Colorado." Walker told FOX21 News that California is ranked first for the number of properties in wildfire-risk areas, Colorado is ranked second. "As we sit here and watch these tragic historic events play out in southern California, we really need to be thinking about how that does impact the way we think, both from how we prevent and mitigate against wildfires, how our insurance works with that, and really not make some of the bad public policy decisions that have thrust California into an insurance crisis," Walker said. After major California insurers left the market last year, homeowners have had to turn to the state's FAIR program -- an insurance pool. The Pacific Palisades is the fifth largest user of FAIR policies in the state, with nearly $6 billion in exposure. But, the FAIR program has only $700 million on hand to pay claims. "California has made some really bad decisions when it comes to how they allow insurance companies to be able to rate for risk, basically taking enough premiums to pay out claims when they have a catastrophic event," Walker said. Set to roll out this year, Colorado will offer its version of the FAIR plan, an insurer of last resort for consumers who were unable to secure a plan on the private market. The FAIR plan will provide up to $750,000 in property insurance coverage and up to $5 million in commercial property insurance. Still, Walker believes it isn't the perfect solution. "That's something that we hope will help people that are truly in a situation where they can't find property insurance elsewhere," Walker explained. "For everyone else, unfortunately, we are seeing rising premiums based on the cost to pay out claims and the costs of reconstruction and rebuilding. So we really are, I think, at a tipping point in Colorado where we're not California yet, but unfortunately, we're a few bad decisions away from that." With the devastation taking place in California, the Rocky Mountain Insurance Information Association said now is the time to check with your insurance professional to see how you are covered. "What is my insurance deductible? What are my limits? What if I were in that same situation? Do I have the insurance protection in place to be able to repair and rebuild my home?" Walker said. "Now's the time to be thinking about that, now that we've had this really tragic wakeup call."