If you own a home and you live in Colorado, you need Colorado homeowners insurance. Here are some things to consider when you’re shopping for Colorado homeowners insurance:
Buy enough homeowners insurance to cover your home’s replacement value
One of the mistakes many homeowners make is to insure their home for its current rather than replacement value. Keep in mind that if something happens to your home and you’ll need to repair or even completely rebuild it, you’ll likely need more coverage than that notify your home’s current value. Therefore, when you buy Colorado homeowners insurance coverage, make sure you buy enough insurance to repair or even replace your home in its entirety.
Buy enough insurance to cover your possessions’ replacement value, too
As with your home, you also need to make sure you have enough money to re-buy your possessions in the event you lose them because of disaster, theft, etc. Again, remember that you need to buy enough insurance to replace them at what they’ll cost you at the time of re-purchase. In other words, don’t assess the value of your possessions at current market value. You won’t have enough money, likely, to replace everything you need to. Instead, ascertain what they’ll cost you to replace them and then buy enough coverage based on that.
Reassess possessions and home value on a regular basis
Every few years, go through and re-inventory your possessions, making note of new things you’ve bought or things you no longer have and things for which you no longer need coverage. Reassess your home’s replacement value on a regular basis, too. By doing this, things will be up to date so that if something should happen, you’ll be prepared and can file an accurate claim for your possessions and/or house in the event of disaster.