Colorado Homeowners Insurance

Colorado homeowners insurance is a requirement by mortgage companies and banks that hold mortgages in the state, for all the homes that they finance. This is because banks require that a home, in the event of its destruction, damage, vandalism, or theft (of property inside and outside), be covered for all losses so that the bank can be assured of recouping their investments in a home (mainly, the loan given to you, the homeowner). Take a look at the facts below so that you can make an informed decision in obtaining homeowners insurance in Colorado.

Colorado Homeowners Insurance was not always easy to get. Years ago, there were no laws or regulations to help guide insurance companies or homeowners through the process of purchasing homeowners insurance. In fact, in order to purchase this insurance, homeowners were required to purchase a separate policy for each thing they wanted covered.

For example, if a homeowner wanted to purchase coverage for their property in the house, they purchased a policy for that. Then, if they wanted a policy to protect the house, they purchased a separate policy for that. If they wanted to cover injuries on the property, again it was a separate policy, etc… Eventually, regulations were passed to streamline the system, and after some tweaking and some time, the standard Colorado Homeowners Insurance came into fruition.

Types of Colorado Homeowners Insurance Coverage

There are currently eight different kinds of standard Colorado homeowners insurance policies. They are called HO-1 through HO-8, and offer coverage for different reasons. All policies require that the specific terms be spelled out within a policy or payment will not be rendered.

1. HO-1 – This policy covers specific items within the home such as jewelry, a family heirloom, or a painting.
2. HO-2 – This policy covers a specific part of the house against damage, for example the roof against tree damage.
3. HO-3 – This is the most popular type of homeowners insurance policy. This policy covers the house, everything in the house, and persons in the house as well who might be injured on the property.
4. HO-4 – Another very popular policy, and it is known as renters insurance. This insurance will protect renters from loss due to theft, damage, destruction, etc.
5. HO-5 – Although it offers the same coverage as an HO-3 policy, it covers more thoroughly than the HO-3 policy does (and as such is more expensive).
6. HO-6 – This policy is for condominium owners. This is similar to gap insurance because typically a condominium is covered by a homeowners association (HOA) policy, and an HO-6 policy will cover those things missing from the HOA policy.
7. HO-7 – Covers limited losses from a mobile home.
8. HO-8 – Is a policy for older homes. Older homes usually cost more to replace and this policy allows for a more affordable rate for the insurance.

Things NOT Covered Under a Standard Colorado Homeowners Insurance Policy

There are many things not covered by standard Colorado homeowner insurance policies that homeowners should consider adding as riders to their policies, and most can be added on for just a few dollars a month. Some such lack of coverage includes:

1. Flood
2. Fire – coverage for fire varies with insurance companies, so check and see if you are covered, do not assume that you are.
3. Hail
4. Rebuilding code/zoning change – if your home is destroyed and the code or zoning rules for your neighborhood have changed, this rider will help cover the additional costs of upgrading your home or rezoning.
5. Earthquake
6. Expansive soils – expansive soils (such as potholes) are not covered under most HOI policies. Expansive soils can also crack your foundation and compromise the integrity of your home.
7. Landslide
8. Valuable property – although to a limited extent your property is covered, if you have property that is considered highly valuable, under your standard policy your coverage can only be expanded to a certain amount. However, with a rider, you can add the total value of the property in questions (paintings, jewelry, etc.)

You may also want to consider adding an umbrella to your policy that covers additional injury to person on your property. The annual cost is not expensive (about $200) for $1M in coverage, and this will ensure that,  if you are sued by an individual who is hurt on your property for any reason, you are not going to take a hit financially.

Homeowners insurance is a valuable commodity and it is recommended that you carry the maximum amount that your Colorado homeowners insurance company will allow. When it comes to insurance, it is better to be over protected than under protected, and those having experienced an event that caused their homes to be damaged or destroyed can well testify to that sentiment.

Compare Colorado Homeowners Insurance Rate Quotes

Protect yourself, your family, and even your friends when they are at your home, and ensure that you have the best Colorado homeowners insurance that you can find. If you are in the market for homeowners insurance, or you simply want to know if you are getting the best coverage for the rates that you are paying, then use the homeowners insurance rate quote tool at the top of the page, and start protecting yourself and your loved ones today.