Although not required by law in the state, your lender may require you to purchase insurance in order to finance your mortgage — and it’s a good idea to have it regardless. Here are three things you should know before you buy Colorado homeowners insurance:
- The most expensive policy is not necessarily the best one. Many insurance companies may tout themselves as the "best" insurance company to go with — but they may have hefty price tags on their policies. However, this doesn’t necessarily mean you’re getting the best deal. To get a policy that’s truly fairly priced, do a careful inventory of your home and its possessions before you shop for your policy. Put a replacement value (not the current value) on everything in your inventory, and price your home’s structure the same way. Go for replacement value, not current value. Then, armed with that information, comparison shop by going online and checking out homeowners insurance companies that service your area. Choose the least expensive policy from a company that has a good reputation but one that still gives you the coverage you need.
- The least expensive policy is not necessarily the best one. Lots of insurance companies will give you a price break on your insurance such that it looks like you’re getting a very good deal: low premiums with lots of coverage. Be careful, though. Check out a company’s reputation before you buy, including its quality of customer service. A lower-priced policy may leave you high and dry because you can’t get ahold of your agent when you need to or because customer service is shoddy.
- All insurance companies are not created equal. Do your homework. A company’s reputation should always, always trump policy price. When you’re doing your research, choose two or three companies with stellar reputations via online research, establish replacement price points for your housing structure and possessions, and then choose the lowest priced policy from one of these "stellar reputation" companies to give you the coverage you need.