We all remember the destructive fires that swept through Colorado and swallowed up everything in their path, including some very nice homes. While you may not have been personally affected in your Lakewood Colorado, there is always the threat of a fire or some other major destructive force, leveling your house to the ground.
While it is highly improbable that you will ever suffer a complete loss of your home and have to rebuild from the ground up, it is always good to be prepared for the worst and hope for the best. As your independent agent, we suggest that you thoroughly review your home insurance policy, or if you feel more comfortable, you can call our office and have an independent agent review your policy for you.
One of the most important things to look for is whether or not you have a guaranteed replacement cost clause included in your home insurance policy. A guaranteed replacement cost clause is important because it will pay as much as necessary to rebuild your home, even if the amount is greater than what the market value was before the home was destroyed.
There are a few things to look out for, even if you have guaranteed replacement cost insurance. First, if your home was destroyed in a fire and you decide it is safer to build on another lot away from the forest, you may not get as much as you need to rebuild the home in another location. Some insurance companies will claim that they do not insure for the cost of the land and a similar house built in another neighborhood may wind up costing you a lot of money out-of-pocket.
The second thing to be aware of is that there may be new building codes that require better materials and more permits before construction can be started. This is another area where your insurance company might insist that you bear those additional costs.
Losing your home to a disaster is hard enough without having to fight with your insurance company. Remember, as your independent agent, we are always here to help you get through a tough time dealing with your insurance company.