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