Are you protecting what could be one of your most expensive purchases—your home? Living without comprehensive home insurance leaves this asset very vulnerable. Fortunately, Obrella helps you track down and buy a Colorado home insurance policy. Insurance experts make it easy to weigh your options so you can choose the policy that’s best for you.
Homeowners in Colorado
On average, home owners in Colorado pay $1,0385 per year for home insurance, which is on par with the national average of $1,034. Compared to other states, Colorado has the 18th highest average insurance premiums.
- Median Home Value: 242,100
- Household Income: 60,940
- % of Income on Home Ownership: 30.00%
Nationally, 63.5% of homes are owner occupied and the median house value is $176,700. In Colorado, the rate of owner occupied homes is about the same as it is across the country, but the median house value is 25% higher, at $236,200. The median household income in Colorado is $58,823 and homeowners spend 30.0% of their income on home ownership costs. Colorado is ranked 22nd in the country for states where residents spend the most on home ownership costs.
While Colorado is relatively protected from many natural disasters, crime rates can vary widely around the state. The cost of homeowners insurance reflects the larger picture of the risk insurance companies are taking on.
There are a lot of expenses that come with being a homeowner, but there are ways to reduce them. Call [mapi-phone-link /] and speak with an insurance professional and ask them run a home insurance comparison. Also, ask them about available discounts whether you’re in Colorado Springs or Denver. This will help you get the best home insurance quotes in Colorado.
How Do Companies Determine Home Insurance Premiums in Colorado?
Insurance companies calculate the cost of your home insurance policy by considering various factors. These factors include everything from the size and age of your home to neighborhood housing prices and crime rates. If you live in an area that has a history of natural disasters like earthquakes, floods, or tornadoes, this will impact your rates as well. Even things like your credit score and add-ons such as a swimming pool or a guest house on your property may affect the cost of your insurance premiums.
Why do these aspects matter? These elements combine to determine the amount of risk the insurance company will take on when issuing you a homeowners insurance policy. The higher the risk, the higher your premium. You have the ability to reduce these risks, however. Making your home more secure is a good start. Installing a complete home security system, for example, can lower the likelihood that your insurance company will need to pay up in the event of a burglary. Even installing motion-sensitive lights and surveillance cameras can lower your risk and therefore your homeowners policy premium.
Homeowners Insurance in Colorado
Most Colorado home insurance companies offer a range of coverage options; some of which are defined below:
- HO-1: Limited Coverage
- An HO-1 policy provides protection against any of the first 10 classified disasters: fire or lighting, windstorms or hail, explosions, riots, damage caused by aircraft, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. In most states, however, this type of policy is no longer available.
- HO-2: Basic Policy
- In the event of any of the 16 classified disasters, an HO-2 policy will give you basic protection. This is a named hazard policy. So anything that is not named is excluded.
- HO-3: Standard, most popular
- Aside from minor exclusions, an HO3 policy provides comprehensive coverage for your home. If it is not listed in the exclusions, an HO3 will cover it
- HO-8: Older Home
- To protect against depreciation, this policy will usually reimburse homeowners for damage on an actual cash value basis, though some older homes may not qualify for full replacement cost policies.
What is Covered By Standard Colorado Homeowners Insurance?
Your policy will dictate specific situations that grant you coverage for damages. In general, however, your provider will not pay for damages to your home caused by situations that are not explicitly covered in writing. They also do not cover issues of neglect.
So, if your home is damaged in an earthquake, you’ll only be covered if your policy specifies that you have earthquake coverage. If your home is flooded, you’d only be covered if you addressed it as quickly as possible and within reason. Here are some common home insurance coverage definitions to help you figure out your current coverage and determine how much you actually need:
- Coverage A – Dwelling
- Coverage A deals with damage to the home itself, any structures attached to the home, and any of the home’s plumbing, heating, wiring, or permanent air conditioning systems.
- Coverage B – Other Structures
- Tool sheds, free-standing garages, fences, guest homes, and other non-attached structures are covered under Other Structures.
- Coverage C – Personal Property
- Personal Property coverage pays back homeowners in the event that a personal possession—like clothes, furniture, or electronic equipment—is lost or damaged. This coverage is valid whether or not the loss or damage occurs on the property—so items in a storage unit, for example, would still be covered. Keep in mind, this is only for homeowners. Any renters would need a separate renters policy, which generally comes with low average rates.
- Coverage D – Loss of Use
- Loss of Use coverage reimburses the homeowner for living expenses during home repairs.
- Coverage E – Personal Liability
- If found legally liable for injuries that occurred on their property, a homeowner can use their Personal Liability coverage, which will cover the homeowner’s financial loss.
- Coverage F – Medical Payments to Others
- Covers medical bills for individuals hurt on a homeowner’s property or by the homeowner’s pet.
Where Can Colorado Residents Find Insurance Resources?
- Department of Regulatory Agencies : Colorado’s regulatory department. It includes an Insurance Division that’s dedicated to consumer protection. Through DORA’s Insurance Division, you can sign up for insurance alerts, research the state’s insurance laws, and ask experts any of your insurance related questions.
- Rocky Mountain Chapter of the Community Associations Institute: Through education, networking and leadership, it works to develop vibrant and responsive and community associations in the Denver Metro, northern, and mountain regions of Colorado.
Shopping for home insurance can be frustrating but there’s a way to make the process less strenuous. That’s why Obrella makes it easy to find an ideal home insurance policy for your lifestyle. You can call one of the experienced insurance professionals we’re connected with and trust them to help you decide on and secure the coverage you need. You can also get quotes online in minutes to find an affordable annual premium.
If you’re shopping for homeowners insurance, we recommend getting at least three quotes with the same coverage. Then compare them side by side to see which is the best option for you.
Want to learn more about your home insurance policy options in Colorado? Call [mapi-phone-link /] today to talk to an insurance agent.