A homeowner in Lockwood, Colorado is shopping for homeowner’s insurance, they will need to take a look into the possible future scenario and consider the worst happening in order to structure a homeowner’s policy that will cover every aspect of their home’s total loss.
Unfortunately your home has been destroyed and it was a total loss and the homeowner must rebuild. As a homeowner you will need to call your independent agent right away. If you have not received a call back within 3 days, call the insurance company directly regarding specific costs.
Generally when a home is destroyed, homeowners think that they are going to receive an amount equivalent to the replacement cost of their home for this total loss. This coverage will dictate the shortest time possible to repair or replace the home or decide on a permanent relocation of the home. There is generally a ceiling limit, which is 20 percent to about 50 percent of the house limits. For instance if your home is worth $300,000 the insurance will allow 20 percent of this amount to maybe 50 percent of living expenses. This could cover the homeowner for one to two years.
It is a wise idea for all homeowners in a risky location such as Colorado and a location such as Lakewood, Colorado, to buy an extended replacement policy to cover a total loss should it occur. This policy will replace over 100 percent of the policy limits up to about 125 percent. For example, a home is insured for $300,000 with a 125 percent replacement the additional amount due to the homeowner would be $375,000. The formula for calculations would be, "300,000 x 125%=375,000 which would be the maximum dollar amount allowed."
When the homeowner in Colorado and their independent agent with a Lakewood location are trying to structure a homeowner’s policy to fit the needs of the homeowner regarding a rebuild and the costs of a new or repaired home, the homeowner should ask their independent agent it they need to include an amendment to their policy for removal of debris, an upgrade to building codes and landscaping needs, plus an extension on their policy for replacement costs.