If you are a newbie to the world of Colorado homeowners insurance, then your first question is probably going to be what a Colorado homeowners insurance policy covers. It doesn’t cover anything that may happen to your home, but it may cover “acts of god” which is a popular myth that a homeowners insurance policy does not cover.
Your Colorado homeowners insurance policy is probably going to be different from your neighbors’, your siblings’ and your parents’. This being said, there are standard policies and you can expect certain things from them. Here is what you can expect from a standard Colorado homeowners insurance policy.
Covers Damage to Your Home
Most standard Colorado homeowners insurance policies will cover damage to your home that results from the following:
- Plumbing issues due to freezing
This is standard coverage on a homeowners insurance policy. Things such as flood insurance and wind and hail coverage are additional and will have to be purchased as separate insurance policies. Depending upon where you live, your mortgage lender may require you to purchase these additional insurance policies.
Covers Loss of The Use of Your Hom
If you cannot use your home for a covered reason, then your insurance will pay for the expenses that you incur while not being able to live in your home. Depending upon the policy, your homeowners insurance will help you to pay for the following:
- Lodging (hotel bills)
- Additional gas required for travel
- Time missed from work
- Any additional living expenses
You should check your policy to see just how much help they will give you in this instance, especially before you make plans for what to do in case you cannot use your home.
Covers Loss of Personal Items
Your personal items that are stored in your home may also be included in your policy. You will likely have to give a list of items in your home to be covered by your Colorado homeowners insurance policy. Most standard policies will offer a generic amount of coverage for your personal items, and you may have to increase coverage on personal items if it is not enough.
If you would like to purchase additional coverage on expensive items, such as jewelry, you can add that coverage as an addition to your standard Colorado homeowners insurance policy.
Gives You Liability Coverage
Your homeowners insurance police will also provide liability protection. This is protection against the injury or property damage caused by you, anyone in your family or your property to someone on your property. This includes medical bills, time off from work, property damage and even legal costs. This type of protection is solely for instances involving third parties, such as a neighbor getting bitten by your dog while on your property.
Homeowners Insurance and Your Mortgage
You can get some help with your Colorado homeowners insurance policy from your mortgage lender. They will inform you of the minimum amount of coverage that is required on the home as long as they hold the mortgage. You must meet their requirements in order to keep your loan in good standing. However, things such as coverage on personal belongings are your decision.
You can set up your homeowners insurance to be paid through your mortgage as a part of escrow. This is convenient in they you don’t have to worry about sending in the premiums; your escrow will handle the transaction.
Compare Policies Online
When you are searching for Colorado homeowners insurance, you should start with the minimum requirements and get online Colorado homeowners insurance quotes. This will give you an idea of the cost and to allow you to compare the rates of the various companies. You can then add certain elements such as higher limits and additional coverage options in order to see how much these specifics add to the cost of your policy.
By comparing Colorado homeowners insurance quotes you can get a great idea of how much coverage you can afford. By shopping around in this manner and forcing the insurance companies to compete, you may find out that you can afford the Colorado homeowners insurance policy that you want.