A Guide to Home Insurance in Colorado (CO)

One of the key considerations when you are a homeowner in Colorado is to get comprehensive Colorado Home Insurance that will provide you with a safety net if anything untoward or unforeseen occurs with your home. This could be because of a fire or robbery or an accident that befalls a guest in your home which requires medical attention, and for all of these you need to be sure to get good Colorado Home Insurance that gives you proper levels of protection.


What is Average Colorado Home Insurance and Can You Do Better?


A very big issue when you are shopping around for homeowners insurance is to make sure that you are getting a good deal, and so you want to make sure that you are getting better than average Colorado Home Insurance.

But what exactly is the average cost of Colorado Home Insurance?

Well, the US Census Bureau regularly produces reports which it collates from all the Departments of Insurance across the United States, who have privileged access to ALL of the insurance companies in their states who want to sell home insurance, and hence this is the most accurate gauge available of what the average price of insurance is across the country.

A report published in 2011 shows the average premiums for 2007 as a whole and reveals that the average Homeowners insurance premium was $822 across the United States as a whole (for the year), and that the average cost of Colorado Home Insurance was $826, so pretty close to the national average.

The question of whether you can do better does of course depend on a number of different factors, not all of which are under the control of the insurance companies in your state (in fact most are not).
These would include Physical Characteristics of the property itself and its environs:

The age of your property
Its physical structure – Stone, brick, synthetic walls etc.
How sound the roof is
Proximity to a fire station
How prone its location is to storm damage
The safety profile of the neighbourhood i.e. How many burglaries take place.
Have you fitted any safety systems such as smoke detectors, fire extinguishers, fire alarms etc.
As well as personal characteristics of the individual who is taking out the policy:
Smoker vs Non-Smoker – Non-Smokers may pay less for their homeowners insurance.

The credit history of the person taking out the policy – Credit history is usually factored into any premium calculations, and so for good or bad it is a fact that if you have a bad credit history then you will invariably pay more for your home insurance then someone else with a good credit history.

Your previous claims history – Again this is a really big deal for most insurance companies in Colorado. If you are looking to take out Colorado Home Insurance, but have had claims in the last couple of years then the chances of your premium being higher than individuals who haven’t claimed are dramatically increased.


In fact, the sad truth (because it is supposed to be ‘insurance’ after all!) Is that you may be better off to not put in claims for relatively small claims on your home insurance policy at all, in order to avoid your insurance premium being raised in subsequent years, but instead only claim if the amount is over a few hundred dollars.


The Six Standard Features of Most Colorado Home Insurance Policies


There are six types of cover that come as standard with most Colorado Home Insurance Policies, and they are as follows:

1/ Dwelling Coverage – This provides for the replacement or repair of your home if it is damaged. This is normally insured on an ‘all perils’ basis, which means that you are insured for all causes of loss, apart from ones that are specifically excluded on the policy. It is worth noting that come very common exclusions would include cover for Flooding and Earthquakes, so you should always be sure to thoroughly read in your policy terms and conditions exactly what you are and are not covered for, and if necessary consider taking out some additional insurance to cover those areas.

2/ Other Structures Cover –
This would cover other permanent buildings that are on the same site, but which are not attached to the main dwelling, such as garages, sheds etc. Normally this would be a maximum of 10% of the total covered amount.

3/ Personal Property Cover – This would cover your personal property and the household effects such as furniture, carpets, kitchen equipment etc. This would normally be up to 50% of the total amount of cover, and also whilst these items would be covered away from the home, the payout limit would be considerably curtailed to normally 10% of the total limit.

4/ Additional Living Expenses Cover – This is also often called ‘Loss of Use’ cover and covers the living expenses that you would have to meet if you were displaced from your home, and forced to find alternative accommodation. Normally there is a time limit on how long you can claim this cover for (often a year), and other limitations are often routinely set.

5/ Medical Payments –
This is too help to meet any medical bills for non-residents of your home who become injured whilst at your property. The amounts that are covered for this aspect of Colorado Home Insurance can vary quite markedly, so be sure to check exactly how much this covers you for, as medical bills can be very expensive if you have to pay them personally!

6/ Personal Liability Cover –
This would apply to both cases where something happens on your property and someone sues you, and also often covers your children for accidents caused against neighbour’s properties. Again the terms of this cover can vary quite dramatically between policies, so you shouldn’t assume you are automatically covered if you take out home insurance. You should always be sure to double-check exactly what the terms are.

The nature of getting Colorado Home Insurance arranged is that it is not necessarily the most pleasurable experience in the world, as dealing with admin seldom is. But the reality is that if you ever get robbed or your house is set on fire, then you will be very glad that you chose to take an hour out of your busy schedule to research and buy the best possible policy.

Start out by getting a selection of Colorado Home Insurance Quotes and see exactly what is available in your price range.



 

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