Homeowners insurance is an essential part of being a homeowner in Colorado. It provides financial protection in case of unexpected events such as natural disasters, theft, or damage to your home. However, many homeowners may not fully understand their insurance policies or the coverage options available to them. In this blog post, we will discuss what homeowners need to know about homeowners insurance in Colorado.

Personal Property

First, it is important to understand the different types of coverage that are typically included in a homeowners insurance policy. The most basic coverage is for the structure of your home, which could cover the cost of repairing or rebuilding your home in case of damage from natural disasters or other unexpected events. Additionally, your policy will typically cover personal property, which includes items such as furniture, electronics, and clothing. If you have a replacement cost endorsement on your policy, this coverage could pay to replace these items if they are damaged or stolen.


Personal liability coverage is also an important part of homeowners insurance. This coverage can protect you in the event you are held liable for someone’s injuries on, or off, your property. It can also cover you in case you accidentally damage someone else’s property. It is important to make sure that you have enough liability coverage to protect your assets in case of a lawsuit.

Additional Living Expenses / Loss of Use

Another coverage option that homeowners may want to consider is additional living expenses coverage, also referred to as loss of use. This coverage will pay for expenses such as hotel stays and restaurant meals if you are unable to live in your home due to damage. This coverage is especially important in case of a natural disaster when you may need to evacuate your home.

Home Insurance Exclusions

It’s also important to know that homeowners insurance doesn’t cover everything. For example, most policies don’t cover damage from floods or earthquakes. If you live in an area that is prone to these types of natural disasters, it’s a good idea to purchase additional coverage.  You can request a flood quote and purchase a flood policy by clicking here. Home insurance policies also don’t wear and tear or losses that occur over a long period of time.  If you can’t pinpoint the specific date that the damage occured, it likely isn’t covered.

Deductibles, Location and Discounts

When purchasing homeowners insurance, it is important to use an independent insurance agency, like Premier Mountain Insurance so you can compare policies from different insurance companies, with the convenience of using a single agency. It’s also important to consider the deductible, which is the amount of money you will have to pay out of pocket before your insurance coverage kicks in. A higher deductible can lower your premium, but it also means that you will have to pay more out of pocket in case of a claim. It is important to choose a deductible that you can afford in case of a claim.

It’s also essential to know that the cost of homeowners insurance in Colorado can vary depending on where you live. For example, if you live in an area that is prone to natural disasters such as wildfires or floods, your insurance premium will be higher. Similarly, if you live in an area with a high crime rate, your insurance premium will also be higher.  In Colorado, the front range has some of the highest insurance costs in the country, due primarly to hail.  You may also have pockets of very high insurance costs if you are in a remote wooded area of more than 5 miles from a fire station.

Another thing to consider when purchasing homeowners insurance is discounts. Many insurance companies offer discounts for things such as home security systems, smoke detectors, and even for being a long-time customer. Make sure you are aware of all the discounts you qualify for to ensure that you are getting the best rate possible.

Final Thoughts

Lastly, it’s important to review your homeowners insurance policy regularly. It’s essential to make sure that you have the right coverage and that you are not overpaying for your insurance. As your personal situation changes, such as buying new items or doing renovations, your insurance needs may also change. It’s important to keep your insurance company informed of any changes so that you have the right coverage at all times.

In conclusion, homeowners insurance is an essential part of being a homeowner in Colorado. It provides financial protection in case of unexpected events such as natural disasters, theft, or damage to your home. By understanding the different types of coverage available, shopping around for the best policy, and regularly reviewing your policy, you can ensure that you are properly protected in case of an accident. Don’t hesitate to reach out to our office if you have any questions about your policy.