Trust us: you'll thank yourself later if you take the time to think through these considerations carefully.
5 Things To Consider When Buying Home Insurance In Denver, CO
Are you a new homeowner in need of insurance for your mortgage? Or are you already a homeowner and considering finding new coverage for your property? Either way, you'll want to carefully weigh each of these factors before purchasing your policy.
The Amount Of Coverage You Need
Let's set things straight right from the get-go: there are no state-mandated requirements for homeowner's coverage in Colorado. You read that right. Legally, you can own a home without homeowners insurance.
However, most mortgage lenders will require homeowner's insurance to protect the amount of money owed on your loan. We should note though that their required insurance amount may be for only 80% of the replacement value of your home. And your coverage does not need to equal your home's market value.
That said, it's important to avoid buying too much coverage for your property. Unnecessary and extra coverage will just end up being a waste of money.
As a good rule of thumb, you should aim to purchase enough insurance to only cover the labor and materials to completely rebuild your home.
But Make Sure Your Assets Are Covered
As you compare different policies and providers, you'll likely see tons of package options, add-ons, and separate coverages. These additional coverage options are not always necessary and can increase the cost of your policy. However, they may also be well worth the investment and could save you tons of money in the long-run.
Take "earthquake, hail, and windstorm" coverage, for instance. According to a report from Aon, hail-related insured losses across the U.S. between 2000 and 2019 averaged between $8 billion to $14 billion a year. That's a significant amount of damage throughout the country! And it's worth noting that hail restorations are rarely ever cheap. For that reason, you may want to consider adding this coverage option to your home insurance in Denver, CO.
And that's not the only add-on that you should consider. You may want to consider some additional add-ons, options, and policy riders including:
- Sewer backup coverage
- Extended replacement cost coverage
- Inflation protection
- Ordinance coverage, or law and endorsement coverage
- Flood insurance
The Reputation Of Your Insurer
There are all kinds of insurance agencies in Denver, from small family-owned businesses to larger multi-office companies. This abundance of options can make it challenging to find the right provider. To avoid working with a fraudulent business and to ensure you get the right coverage, you'll need to evaluate the reputation of various insurers.
Be sure to do your research on each option you're considering. Read through client reviews, analyze consumer complaints, and compare insurer credit ratings.
As you narrow your options, make sure you give each provider on your shortlist a call! If an insurer is asking a lot of questions, you can likely trust their work.
Differences In Deductible Pricing
Earlier we said that price isn't everything when shopping for home insurance policies. While that is still true, you should consider how various providers will structure the pricing of your deductibles.
When disaster strikes your home and your insurer can cover the damage, you'll need to pay your deductible. And depending on the policy and the claim, that deductible may be priced in one of two ways:
- As a flat dollar amount like $500 or $1000
- Or as a percentage such as 1% or 2% of your home's insured value
It's important to understand how your deductibles are priced, especially in any additional coverages that you purchase.
For instance, let's assume you have a policy with a $1,000 deductible for most losses, but your optional flood coverage has a 10% deductible. So, if a flood damages the home that you've insured at $200,000, the deductible for your claim would be $20,000. That would be a steep financial burden to deal with.
Availability Of Discounts
As you narrow down your options for an insurance provider, don't forget to check in about ways to secure discounts and save money! Various providers will offer the coverage you need and simultaneously provide avenues to save money on your policy over time.
For instance, some policies will let you save money if you have a security system installed in your home. Other insurance providers, like Allstate, may provide discounts if your home has a hail-proof roof (especially in Colorado).
You may even want to consider bundling your insurance policies under one provider too! At Adler Insurance Group, for instance, you can bundle your homeowner's insurance with multiple other policies under one roof to take advantage of our terrific discounted rates. It's an extremely easy way to reduce the cost of your home insurance and other policies.
Request A Quote For Home Insurance In Denver, CO
Your home deserves quality coverage at an affordable rate, and that's exactly what we'll provide at Adler Insurance Group. We'll craft a customized policy to keep your biggest asset effectively protected and ready for every kind of risk.
Contact Adler Insurance Group today to get your free quote for home insurance in Denver, CO.