A homeowners insurance policy can provide comprehensive protection against damages to a house and its contents. Colorado law does not require a consumer to purchase homeowners insurance, but if your home is financed, the mortgage company will require coverage to protect their interest in the property.
There are various kinds of insurance including homeowner, condominium, renters and mobile home. All of these provide property and liability coverage. The property coverage will insure against perils such as fire, wind, hail, vandalism, and theft. The liability coverage protects you in the event someone other than the insured is injured on your property.
Keep in mind that the most homeowner policies will not insure you for floods. If you need to purchase flood insurance contact your company representative. Your policy contract will explain all of the insured coverages and exclusions.
It is important that you read your policy contract and understand its limitations. If you have any questions about your homeowner coverage contact your company representative or you may contact the Colorado Division of Insurance at 303-894-7499 or at firstname.lastname@example.org.
Homeowners Insurance Premiums Report
Complete the free Home Inventory Checklist before disaster strikes. Be sure to store a copy in a safe place away from your home.
The checklist also is available in Android and iPhone apps from the National Association of Insurance Commmissioners.
Homeowner’s Insurance Consumer Tips
Shop around. Prices for identical coverage can vary greatly among insurers. Talk to several agents before making your purchase.
Read your policy. Pay special attention to the exclusions.
It is recommended that you choose the highest deductible you can financially absorb in the event of a loss. While a $500 deductible was once generally standard, a higher deductible may be more appropriate in today’s homeowner’s market and can reduce the total premium.
Ask your company or agent if you are eligible for any discounts. Many companies provide a discount if you install a smoke detector or security system.
To protect the home and personal property it is recommended that you purchase replacement cost coverage for your home rather than actual cash value. In most cases the cost difference is small. Additionally, you should request a recalculation of the replacement cost value once a year because the automatic increases that may be provided by a policy might not be enough to maintain adequate coverage amounts. To learn more about Replacement Cost Coverage vs. Actual Cash Value, go to Homeowners Insurance – Understanding the Value of Your Home and its Contents.
Insurance companies generally order Comprehensive Loss Underwriting Experience (CLUE) reports when determining eligibility for coverage. The CLUE report provides your personal claim history as well as the claim history on any property. The number of claims reported regardless of amounts paid, can affect eligibility. Colorado consumers may obtain a copy of their own CLUE report anytime, at their expense; however, Colorado law allows for one free report every calendar year, which can be ordered from a Consumer Reporting Agency.
Homeowner’s policies do not cover flood damage. If your home is built on a flood plain, you may be required to purchase flood insurance if you have a mortgage. If you believe you have a risk for flooding, you can purchase flood insurance. The National Flood Insurance Program (NFIP) offers flood coverage in many areas. You can purchase NFIP policies from most local agents. For further information call NFIP at 1 800-427-4661 or go to the NFIP website.
If you need more liability coverage than what your homeowner’s policy provides, you can purchase a separate umbrella policy. The umbrella policy provides coverage beyond your basic liability limits, and in some cases, may provide coverage where your basic policy may have gaps.
Contact your company or agent for a personal homeowner’s insurance consultation.