Is it true that a home ins. co. can choose to drop you after you file a legitimate claim?

Question

We live in the Front Range of Colorado (1 hour west of Denver) and I have been told that home insurance companies don't want to cover us as the risk of fire is too great and therefore will use any reason to drop us.

Answer 1

That may be true. "Redlining" in the insurance industry is illegal. It means the insurance company cannot draw a circle on a map and refuse to insure anything inside the circle.
However, an insurance company is under no obligation to renew a policy if there is a change in hazard. Increased risk of forest fire is an increase in hazard. So it would be legal if your insurance company did not renew your policy.