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Colorado Homeowners Insurance Coverage

Having just the right amount of Colorado homeowner’s insurance coverage is essential for protection against any catastrophe that may happen to your home.  It’s also important that homes covered by homeowner’s insurance coverage in Colorado not be underinsured or over insured.  Maintaining just the right amount of coverage on your CO homeowner’s insurance will save you quite a bit of money in the long run if you know exactly how much you need and what to insure.  Here are some tips for maintaining just the right amount of Colorado homeowner’s insurance coverage:

The Basics Of Colorado Homeowner’s Insurance Coverage

It is important to understand that when shopping for Colorado homeowner’s insurance coverage that you don’t just look for price alone.  Buying homeowner’s insurance is a complicated affair and is made up of many different components.  First of all, you’ll need the proper level of coverage as well as any provisions for valuables such as computers, jewelry, furs, or silverware stated specifically in the policy.

In addition to the proper level of coverage, you also might find that you need earthquake or flood insurance.  It’s important to remember that standard coverage will not vary from company to company because standards are set by the Insurance Services Office (ISO), but the price of standard coverage will vary from company to company so it’s important to shop around for the best prices.

There are several basic policies that can be chosen for Colorado homeowner’s insurance coverage:

  1. HO-1:  The HO-1 policy is the most basic plan and usually only covers fire and lightening damage.  Please note that this policy is not available in all states but it is available in Colorado.  However, in many cases the HO-1 policy coverage for homeowner’s insurance in Colorado keeps the insured building drastically underinsured.  It may be cheaper, but it doesn’t necessarily mean you’ll save money in the event your home is destroyed totally.
  2. HO-2:  The HO-2 policy is a broader policy that covers 16 different perils that could happen to your home.  These perils include: Fire or lightening; windstorm or hail; explosions; riots or civil commotions; aircraft damage; damage caused by vehicles; smoke; vandalism; theft; volcanic eruption; falling objects; weight of ice, sleet or snow; accidental overflow of water or steam from plumbing, heating, cooling, or sprinkler systems; sudden and accidental tearing, cracking, and burning or hot water heating system, sprinkler, or air conditioning system; freezing of the hot water heating, sprinkler, or air conditioning systems; sudden damage from artificially generated electrical current.
  3. HO-3:  The HO-3 policy works a little differently than the previous two policies.  Essentially, it is a special homeowner’s policy that covers any damage except those specifically excluded from the policy, so it is especially important if you purchase this CO homeowner’s insurance policy coverage, that you read your policy documents very carefully and have a firm understanding of the perils not covered by your policy.
  4. HO-8:  The HO-8 policy is designed specifically for older homes and covers the same perils as the HO-2 policy except that it pays only for the cost of repair or actual cash value.  It does not pay for any replacement costs.  Despite this, though, it is a good policy for older homes because their market values often are considerably less than the cost to rebuild.

Additional Tips For Purchasing Colorado Homeowner’s Insurance Coverage

So now that you know the basics about the different policies surrounding Colorado homeowner’s insurance coverage, you’re ready to tackle all the additional coverage that will be thrown at you.  Some are necessary to have in protecting your home and valuables and others are completely optional.  If you have any questions with any of the optional coverage, don’t hesitate to ask your insurance provider for help in deciding exactly what you need.  Listen to what they have to say, but don’t feel pressured to buy something you feel you don’t need.  And don’t forget to ask for discounts!

A. Supplemental Coverage:  Supplemental coverage will add some extra money to your premium because it isn’t covered in your initial policy.  Supplemental coverage is completely optional, but can be good to have if you’re concerned about any of the following things: 

● Flood Insurance:  Please note that Colorado homeowner’s insurance policy coverage does not cover flood insurance.  The National Flood Insurance Program (NFIP) cover floods in many areas.  If you’re concerned about flood damage to your home, contact your customer service representative that is associated with your policy.  They’ll be able to direct you to the right person.

● Earthquake Insurance:  If you feel you need earthquake insurance, it can be purchased under a separate policy.

● Endorsements:  Endorsements cover any jewelry, computers, furs, or anything you think is valuable and will need to be replaced in the event of a total loss to the home.  You can get each item appraised and put specifically in the policy in ensure that it is covered.  These are called scheduled personal property endorsements.

● Liability Insurance:  Your homeowner’s policy should already have liability insurance attached with it, but if you feel like you need more than your policy provides for, you can purchase extra protection under a separate umbrella policy.  These kinds of policies vary from company to company, so make sure you speak to your representative and find out how the coverage works.


B. Saving Money:  After you’re through picking your plan and deciding on if you need all the supplemental coverage thrown at you, you’re going to want to ask how you can save money on your Colorado homeowner’s insurance policy coverage.  There are several different ways to save money: 

● Ask For Discounts:  You can get discounts in a variety of different ways.  Some are easy, like buying a fire extinguisher, installing a deadbolt, or smoke detectors.  Others are a little more expensive but can save you money in the long run.  These include installing a sprinkler system, a security alarm, or upgrading in plumbing or electrical systems.  You might also be eligible for a discount if you are over the age of 55 or have been a long-time policy holder.

● Opt For A Higher Deductible:  Having a higher deductible ultimately lowers your premium and can save you a lot of money in the long run, especially if nothing happens to your home.  However, don’t just decided on the highest deductible available assuming that nothing will happen to your home.  This is a recipe for disaster.  Only choose a higher deductible if it fits into your budget.

Reading Your Colorado Homeowner’s Insurance Coverage Policy Documents

Now that you’ve decided on all your options for Colorado homeowner’s insurance coverage, and purchased just the right amount of coverage for you and your home, you’re going to get your policy documents.  There is a specific format to your policy documents and this should help you decipher what is going on.

Every policy has three sections:

  1. Declarations Page
  2. General Agreement Page
  3. Definitions Page 

The declarations page will contain all the pertinent information regarding your homeowners insurance coverage for your CO home.  It includes your policy number, coverage period, the insured’s name and address as well as the address of the company doing the insuring.  Your agent’s name will be on there as well.  It will give you the limits of your policy, additional insured items, and your premium amount.

The general agreement, simply put, is just the agreement of the insurance company to provide the coverage stated in the policy documents as long as you continue to pay them in a timely manner stated in the policy.

The definitions page does exactly what it sounds like; it defines commonly used terms in the document and outlines who “you,” “your,” “we,” and “us” are.

Get Started Finding Colorado Homeowner’s Insurance Coverage Now!

Now that you know everything you need to know about Colorado homeowner’s insurance coverage, just plug in your zip code to start finding the cheapest coverage available!

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