Your home is one of your most valuable assets. It’s where you and your family live and create lasting memories. It’s where you keep your valued possessions.
Some typical coverages to be aware of especially here on the Front Range of Colorado:
Most home policies will offer the standard 25% over the stated amount on the policy. This gives a buffer so that if the estimate for coverage is low or there is a spike in reconstruction costs, there is enough to rebuild. Consider increasing this to 50% or even 100%. Some carriers are offering Guaranteed Replacement Cost coverage which means that as long as your insurance policy is written for their estimated reconstruction value, they will guarantee the cost of replacement.
Ordinance and Law
When your insurance is first placed, a reconstruction estimate is run, and the amount of coverage is based on that. Building codes change regularly and that can cause an increase in the cost of construction that is not anticipated by the amount of coverage you have chosen. This coverage is usually 10% additional to the policy but, you might consider a higher percentage in some circumstances.
Personal Property Replacement
While this is expected, it is not automatically included and can sometimes be accidentally omitted. Be aware and make sure you have it.
Sewer and Drain Backup
Most home policies will include this but not all. Especially with rental properties, this can often be an excluded coverage. Make sure you have enough to pay for damage caused inside your home for a sewer backup issue.
Roof coverage here on the Front Range of Colorado can be an issue. Carriers have several options in the current marketplace. The best option is Replacement Cost Coverage, which pays for the full replacement of a roof, minus the deductible. The next most prevalent option is Actual Cash Value (ACV) which factors out depreciation based on the age of the roof. ACV makes it difficult to plan because no carrier can tell you the depreciated payout until a claim is filed. Some carriers have developed their own Roof Value Schedule (RVS). RVS tends to be better than ACV because the exact percentages per year for depreciation are disclosed up front. In some cases carriers can exclude coverage for a roof completely due to age of the roof or condition.
Wind and Hail Issues
Specific to the Front Range of Colorado, wind and hail have caused some carriers to leave the state and most carriers to raise the deductible for wind and hail losses. $2500 or $5000 deductibles for wind and hail are not uncommon. Some carriers will have a percentage, 1%, 2% or even 5%. We like dollar figure deductibles rather than percentages because they are easier to plan for financially.
There are many other valuable coverages and potential pitfalls to avoid. Talk to us and we can help you navigate your options.