Homeowners Insurance Information
Colorado Residents – What you need to know about homeowners insurance
Whether you live in Denver, Golden, Lakewood, Arvada, Morrison, Evergreen or Littleton....and.... whether; you own or rent, insuring the place you call home can help protect you financially if you suffer a loss due to fire, theft, vandalism, or other covered events.
Home insurance in Colorado isn't cheap and it gets more expensive every year. By knowing the factors that drive your home insurance cost, you'll have a better understanding of how to save money on home insurance, while retaining the proper coverage to protect your asset.
What Factors Effect the Cost of Home Insurance?
Your home insurance policy is most often made up of the specific options you choose, so how much you'll pay for your policy depends on:
Usually coverage options are priced individually. So how much you end up paying, depends on how much coverage and options you purchase.
Higher deductibles usually lower your premium price by shifting part of the loss payment to you if you do have to file a claim. For example, if you had a $500 deductible, you would pay this amount before the insurance carrier would pay the rest of the covered loss.
Carrying a higher deductible will always result in a cheaper annual premium.
Limits of Insurance
On a declarations page of your homeowners insurance policy, you will see 'limits of insurance. This is the highest amount your policy will payout for each of property coverage usually broken out by Coverage A - Dwelling or Building Coverage | Coverage B - separate Structures | Coverage C -Personal Property | Coverage D - Loss of Use | Coverage E - Liability | Coverage F - Medical Payment.. If you set higher 'payout' limits you will receive a higher benefit which increases the annual policy cost. Usually the carrier will set 'minimum coverage limits' but you may choose a higher limit depending on your budget and comfort level.
Age of Home
Insurance premiums are calculated using complex actuarial models. One major factors these models use is the age of the home. Older homes have more frequent and more expensive insurance losses
Proximity to Fire Hydrants and Fire Dept Response Time
Fire is the most costly insurance loss, therefore the home proximity to a fire hydrant and the local fire department response time is a major factor in price of the home insurance policy.
Construction Type and Materials
The outer shell of your home protects inside from the elements. The material on the exterior of the home, (roof, siding, foundation) plays an important role in potential harm caused to your home from the weather. Also some materials are more flammable than others and this factor is computed into your insurance cost.
Homes in the dry Arizona dessert are much cheaper to insure than in Colorado. That is because the dry air and lack of snow and hail in the dessert means these homes experience far less insurance losses than the homes located in Colorado or the homes located in Tornado Alley of North Texas, Oklahoma, Kansas and Nebraska.
Past Insurance Claims
Sometimes that past is a predictor of the future. Insurance companies know that a home with prior insurance losses is more likely to experience another insurance loss. This is especially true of the home with prior 'water' losses. The Insurance Information Institute states the average homeowner will file a claim once every 8-10 years.
Denver West Insurance Brokers is here to help you find the right insurance for your home
Whether you’re a home or condo owner, a renter, or a landlord, Denver West Insurance Brokers will work with you to find a home insurance policy that fits your needs. Every home is unique Talk to a Licensed Agent to find out how to get the best price and value for your money. We serve all of Colorado, Denver, Golden, Lakewood, Arvada, Wheat Ridge, Littleton, Morrison, Evergreen and the mountain region.