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
- 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 Do repairs and renovate outdated systems around the property.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.