If you live in Colorado and you own a home, you need homeowners insurance in Colorado. Here are some things to consider to make sure you choose the right insurance coverage for your needs:
Choose the least expensive policy to meet your needs
For many people, a relatively inexpensive and basic Colorado home insurance policy will provide plenty of coverage for structural damage to the home and loss of possessions if disaster strikes, but it will provide little to none for things like expensive jewelry. Don’t pay for extra coverage unless you actually have those possessions.
Take a thorough inventory of your home
Before you choose your policy, take a thorough inventory of your home and document everything. This will give you a good idea of what you’ll need to replace in the event you do have structural damage to your home and/or loss of possessions from disaster.
Opt for replacement value coverage
If you do have a disaster, you’ll need to pay for the reconstruction/repair of your home and replacement of your possessions based upon what they’ll cost you new – more than what your possessions or home are actually currently worth. Therefore, do not base Colorado home insurance coverage on today’s value of your possessions or home, or you’ll likely find yourself without enough money to replace them.
Regularly review and revise your policy as needed
Anytime you make major purchases or significantly remodel (and therefore increase the value of) your home, revise your Colorado homeowners insurance policy. You need enough coverage to rebuild that new addition or replace that just-purchased plasma TV in the event of disaster, things an outdated policy may not cover.