Colorado homeowners insurance is a necessity for you if you own a home in Colorado. Here are three things you should know before you buy your Colorado home insurance policy:
Make sure you buy the right policy
All home insurance in Colorado is not created equal. Your policy should cover four things in order to be fully protected:
- The contents of your house (your possessions)
- The structure of your house
- Your liability to others in the event you are found responsible for injuries or accidents that occur on your property, and
- Your living expenses if you are forced out of your house in the event it becomes unlivable, such that you must live someplace else
Buy replacement value insurance
This is a mistake many people make when they buy home insurance in Colorado. You should always buy replacement value insurance so that your possessions will be replaced at "new value" levels; in other words, that’s what you’ll spend to replace current (used) possessions with new ones. If you opt for insurance coverage that only covers "current value" levels of your possessions, you may not have enough money to replace everything you need to.
Make sure you understand the claims process clearly before disaster strikes
Your Colorado home insurance agent should clearly explain what you need to have in hand in order to have a claims process go smoothly. Make sure you understand the claims process before anything happens, and put the agent’s instructions in a safe place, along with your inventory and other documentation.