Starting November of 2025, residents of The Settlement, a unique sub-HOA within the larger Ken Caryl Ranch HOA, will experience a significant shift in how their homes are insured. For over 5 decades, The Settlement’s HOA has provided exterior building coverage through a master insurance policy. But that’s about to change.

Going forward, each homeowner will be responsible for securing their own HO3 or HO5 insurance policy—a major departure from the HO6 (condo/townhome) insurance policies that residents have traditionally carried. This change may feel overwhelming, but Premier Mountain Insurance, your local Ken Caryl agency, is here to help you navigate this transition with confidence and clarity.

Why the Change?

The Settlement’s decision to move away from a master policy model is driven by rising insurance costs, evolving risk management strategies, and simply the availability of HOA insurance at an affordable price. Colorado has been a challenging state for HOA insurance for many years.  HOA policies have doubled and even tripled in recenty years while deductibles for wind and hail moved into the millions! While this change introduces new responsibilities to homeowners, it also gives residents more control over their coverage and claims process.

HO6 vs. HO3/HO5: What’s the Difference?

Understanding the difference between these policy types is crucial as you prepare to update your coverage.

HO6 – Condo/Townhome Insurance

  • Designed for: Condo or townhome owners where the HOA covers the building’s exterior.
  • Covers: Interior walls, flooring, cabinetry, personal property, and liability, depending on the master HOA by laws.
  • Excludes: Exterior structure, roof, and shared areas (typically covered by the HOA’s master policy).
  • Loss Assessment: Often includes limited coverage for shared property damage assessments.

HO3 – Standard Homeowners Insurance

  • Designed for: Single-family homes where the homeowner is responsible for the entire structure.
  • Covers: The building’s exterior and interior, personal property, liability, and additional living expenses.
  • Perils: Named-peril coverage for personal property and open-peril (all-risk) coverage for the dwelling.
  • More Comprehensive: Offers broader protection than HO6, especially for structural damage.

HO5 – Enhanced Homeowners Insurance

  • Designed for: Homeowners seeking the most comprehensive coverage.
  • Covers: Everything in an HO3, but with open-peril coverage for both dwelling and personal property.
  • Higher Limits: Often includes higher limits for valuables and fewer exclusions.
  • Best For: Homeowners who want peace of mind and robust protection.

What This Means for You

If you live in The Settlement, you’ll need to replace your HO6 policy with an HO3 or HO5 policy before November  2025. This means your new policy must now cover the entire structure of your home, not just the interior. It’s essential to ensure your new policy reflects the full replacement cost of your home, including the roof, siding, and other exterior features.

How Premier Mountain Insurance Can Help

As a locally owned and operated agency right here in Ken Caryl, Premier Mountain Insurance understands the unique needs of The Settlement community. We’re already working with residents to:

  • Review current HO6 policies and identify coverage gaps.
  • Provide personalized quotes for HO3 and HO5 policies.
  • Ensure proper dwelling coverage limits and endorsements.
  • Answer questions about deductibles, liability, and loss of use coverage.

We’re not just insurance agents—we’re your neighbors. Our team is committed to making this transition as smooth and stress-free as possible.

Let’s Get Started

Don’t wait until the last minute. Contact Premier Mountain Insurance today to schedule a free consultation. We’ll walk you through your options, explain the differences in coverage, and help you secure the right policy for your home and lifestyle.