Types of Colorado Liability Insurance

Colorado insurance companies offer general liability insurance and many types of custom liability insurance policies. Liability coverage is available to cover buildings, property, vehicles and people. Most people are aware of general liability insurance. This can be a combination of coverage to protect against lawsuits for bodily injury, personal injury and damage to property. Businesses need to have general liability insurance and some opt for additional specific liability policies.

There are some areas of business that require specific coverage. For example, a contractor needs to have special coverage that protects their business against claims for mistakes or poor workmanship, and they need to be sure that any subcontractors they hire also have liability coverage. Here are a few types of Colorado liability insurance options for businesses:

  1. Contractor General Liability
  2. Construction Liability
  3. Environmental Liability
  4. Errors and Omissions
  5. Pollution Liability
  6. Employment Practices Liability
  7. Directors and Officers
  8. Excess Liability
  9. Garage Keepers
  10. Medical Professional Liability
  11. Nursing

General liability policies can be written to include aspects of liability that are specific to a particular business. For example, there is liquor liability for bars and restaurants, inland marine transport liability for those in the inland waterway transportation business, and there is pollution liability for industries like mining and drilling. Most of these policies apply to a business or commercial situation.

For individuals, ask the local insurance agent about general liability when discussing policies for home, vehicles and property. Liability is for everyone and all businesses. If someone becomes injured, killed or property damage is due to some negligence or problem at a home, business or other property location, the liability insurance can be a blessing to help protect against personal financial ruin or bankruptcy following lawsuits.

Every state has different insurance regulations; for Colorado interests, please contact your local Colorado insurance agent for detailed information and advice. They are in the best position to made recommendations based upon the latest governmental regulations and requirements.

Colorado Homeowners Insurance Made Easy

Buying Colorado homeowners insurance is not required by the state but almost always is required by the lender who holds the mortgage on your home. Even if you do not have a mortgage and own your home free and clear, it might be a wise idea to purchase Colorado homeowners insurance to protect what is probably your most valuable single asset.

The Declarations Page

Every homeowners policy has what is called a Declarations page, which details all of the things that are protected under the policy and the maximum amount the insurance company will pay for a covered loss.

Property Coverage

This coverage provides protection against different perils. A typical homeowners policy will cover you against, fire, wind damage, hail storms, vandalism and theft.

Liability Coverage

This coverage protects you if someone should happen to get injured while on your property. It will pay medical bills and also help with any legal costs you might incur as a result of the incident for which a claim was filed.


This is a list of specific perils that are not covered under your Colorado homeowners policy. Some typical exclusions include perils that are usually excluded like floods, earthquakes and landslides. You also may need to buy a rider to cover particularly expensive items like fine jewelry, rare coins and valuable artwork. Most homeowners insurance policies will offer you the opportunity to buy additional coverage to protect you from non-covered perils with the exception of floods. You can buy flood insurance through the Federal Government’s Flood Insurance program.

Types of Coverage

Colorado homeowners insurance coverage has eight basic types of policies, numbered HO-1 through HO-8:

HO-1 – Covers valuable, specific items like jewelry, rare coins or art

HO-2 – Covers a specific part of the house against damage like the roof

HO-3 – Most common, covers the house, contents of the house and injury to persons in the house or on the property

HO-4 – Protects renters

HO-5 – Similar to an HO-3 policy except more comprehensive and more expensive

HO-6 – Covers condominium owners for things not covered under the HOA policy

HO-7 – Covers certain losses for a mobile home owner

HO-8 – Special coverage for older homes that tend to need more repairs than new homes

Don’t Forget the Broker

As we discuss the ins and outs of home insurance and auto insurance, it can be easy to lose sight of the critical role that an insurance broker plays in the process. Your insurance broker or agent will represent you to several different home and auto insurance companies so that you can get the right coverage at the right price. What are the advantages of hiring a quality insurance broker or agent? Read on to find the answer.

First, an insurance broker will help explain the different kinds of insurance available to you. Understanding the legal contracts and other documents provided by an insurer to its customers is not always a simple matter, for the legal language and unfamiliar terms can confuse us about the precise kind of insurance coverage that we have purchased. Licensed insurance brokers, however, are experts in the reading and analysis of these documents, and they can explain in easy-to-understand language the ins and outs of your insurance policy.

The second advantage of hiring a licensed insurance broker is the potential savings that you can enjoy on your home or car insurance. Today it is easy to buy directly from insurance companies, but if you only consult one company, you do not know if you are getting the very best deal on your insurance. Insurance brokers will contact several companies to get competing bids on insurance for you, and they know which insurance companies tend to offer the best coverage at the lowest rates.

It may be that your insurance broker will receive a small commission for these services, but it is well worth it to you in light of the greater savings you can receive on insurance. So the next time you are shopping for car or home insurance, do not forget the licensed insurance broker.

Getting the Right Colorado Insurance Coverage for Your Home

Every state has its own insurance regulations; getting the right Colorado insurance coverage for your home should being with a little background research. Colorado law does not require homeowners insurance, but mortgage lenders do. Homeowners, condominium owners, renters and those who own mobile homes should have home insurance. The first step to take is to know what coverage should be purchased for your situation. Do some browsing on the Internet for comparative rates with the following areas in mind:

  • Protection for the Dwelling
  • General Liability
  • Personal Property Protection
  • Deductible Amount
  • Discounts
  • Medical Coverage
  • Temporary Living Expenses

One of the best ways to keep insurance rates lower is to have a higher deductible. If you have damage, yes, you will pay more, but in the long run there should be considerable savings. Another way to save is to upgrade an older home with newer, safer materials. This is applicable to homes more than 10 years old. Do repairs and renovate outdated systems around the property. Remove any hazards and clear brush up to 30 feet away from the building. If there is a swimming pool, hot tub, trampoline or other potentially hazardous areas on the property, make it safer by installing fencing and locks.

Have the home professionally inspected. Include checks of electrical wiring, appliances, heating and cooling units. Wood burners will add to insurance premiums due to higher risk of fire. Make an inventory of personal property on paper and with photos or videotape. Certain items, like jewelry, electronics, antiques or art may need special insurance. Colorado is known for severe storms with damaging lightning, hail and wind. A separate policy can be written for wildfires and floods. It is recommended to insure for replacement cost rather than actual cash value. Replacement policies do not reduce payments for depreciation; actual cash value does use depreciation calculations.

How to Understand Colorado Insurance

Insurance is not an easy subject to understand, but if you live in Colorado, you need certain minimums of coverage for auto insurance in order to be compliant with the law. Homeowners insurance doesn’t have the same required minimums, but it’s still a good idea to have it.

Minimums for auto insurance

If you own a car and you live in Colorado, you have to have at least liability insurance in the amount of $25,000 per person or $50,000 per accident for bodily injury coverage, and $15,000 minimum in property damage coverage in order to be compliant with the law. This protects you in the event you’re in an accident and are deemed at fault. Your insurance company will cover you for damages up to those amounts. Insurance experts recommend that you carry $100,000 per person or $300,000 per accident for bodily injury coverage if you can afford it, to further protect yourself.

Optional extras in regard to auto insurance

In addition to the above-mentioned liability insurance minimums, there are also two other types of auto insurance, comprehensive and collision insurance. If your car is newer than 10 years old, it’s a good idea to carry these types of coverage; they’re optional, in that you don’t have to have them by law, but if your car is damaged in an accident and you deemed at fault, collision insurance will cover you for repair or replacement of your car up to its current market value. Comprehensive insurance covers you in the event your car is damaged by a non-accident event like hail or vandalism.

Homeowners insurance

You’re not required by law to carry homeowners insurance in Colorado, but if your home is financed, your lender may require it of you as a condition of offering you a mortgage. As with auto insurance, homeowners insurance protects your property against disaster like fire, hail, wind damage, theft, or vandalism. Liability insurance is carried as part of your homeowners’ insurance policy and protects you in the event someone is injured on your property and sues you for damages.