A Colorado homeowner’s insurance company will help you to insure your home and personal property, as well as, protect you. You should take great care in choosing a homeowners insurance company in CO. A CO homeowners insurance company is going to offer you different coverage than another company offering Colorado homeowners insurance. It is up to you to find the company that will best suit your needs and offer you the best protection for your money.
Differences In A Colorado Homeowners Insurance Company
When it comes to choosing a Colorado homeowners insurance company you should consider these 5 factors:
- Price
- Longevity of the Company
- Customer Service
- Your Personal Opinion of the Company
- Financial Strength Ratings (from A.M. Best)
Here is an explanation of each of these factors and why they are important:
- The price is, obviously, going to be a main factor in which insurance company you choose to handle your CO homeowners insurance. You will want an affordable and reasonable price. However, as you will soon understand, price can vary greatly depending upon many factors, so it should not be the sole factor you use in deciding which company to go with.
- The longevity of the insurance company offering your Colorado homeowners insurance is important. You want a company that has a proven record. You need to be able to look at the history of the company to ensure that should you need to file a claim that it will be handled properly. You want to know that if your property is damaged that you will be paid what is owed to you. This is best determined by a company that has been in business for quite some time and has a proven track record of providing good service.
- Service is a top concern. You want to deal with a company that treats you with respect and helps you. You do not want a Colorado homeowners insurance company that is going to make it difficult for you to understand your policy or even get a quote. Your dealings with the company should be easy, not a headache.
- Your personal opinion of the company for your Colorado homeowners insurance policy is important. You should feel comfortable with them. You should like the agent you are working with and feel like they have your best interest in mind. Your personal opinion and feelings is something you should not take lightly. If you do not feel comfortable with a company then you need to look elsewhere.
- A.M. Best is an independent company that rates the financial strength of insurance companies (and their ability to pay claims). Choose an insurer that is rated “A” or better. Keep in mind though, that just because a company has a strong financial strength rating does not mean that they are the best choice for your needs. There are many more things to consider so be sure to shop around.
Here are some top Colorado homeowners insurance companies that you might like to check out:
- Liberty Mutual Insurance Company
- Unitrin Direct Homeowners Insurance
- Brooke Insurance
- American Home Shield
- Farmers Insurance
- Country Insurance and Financial Services
- Clue Ribbon Home Warranty, Inc
- Nationwide Insurance
- Call Answer Financial, Inc
- Fountain Valley Insurance
- USAA
Regulations For A Colorado Homeowners Insurance Company
Homeowners insurance is not something required by state law in Colorado. However, anyone who has a mortgage on their home is going to be required to have homeowners insurance in Colorado by their mortgage company. This is so that the mortgage company has some type of protection on their investment. Should your home be lost to a disaster your homeowners insurance will pay the mortgage company and they will not end up losing out on the money owed to them.
Most Colorado homeowners insurance companies are going to offer you two forms of protection – property and liability.
- Property coverage protects your property.
- Liability protects you against legal issues that could arise from someone getting hurt on your property.
Your insurance policy should offer both in your single homeowner insurance policy. Most mortgage companies will require these two forms of protection at minimum.
Types Of Coverage Offered By A Colorado Homeowners Insurance Company
As mentioned, your homeowners insurance policy is going to offer you the basic property and liability coverage. You need to understand just what is covered and what is not covered under this type of a policy.
Property coverage will protect your property against damage, but not all types of damage.
- Typical policies will cover loss due to fire, wind and hail damage, but do not offer flood protection. This is an important thing to understand since flooding is a major risk to Colorado residents that live in mountain, foothill or grassland areas. Yearly there is about $2 billion worth of damages due to flooding, so it is a serious risk that could mean a huge loss if you are not covered through insurance.
- A typical Colorado homeowners insurance company is going to require you to buy an additional flood insurance policy, if they even offer one. You have to check this out for yourself when starting your policy.
Liability coverage will protect you should someone get injured on your property.
- In the case that a person gets injured on your property and then proceeds to seek damages from you, your liability coverage should help you pay for the legal costs and sometimes will even pay the damages for you. You should check the exact coverage offered in your policy.
The Cost Of A Policy Through A Colorado Homeowners Insurance Company
The cost of a policy through a Colorado homeowners insurance company is going to vary greatly depending upon many different factors. The following are some of the factors that can affect the price:
- type of home
- contents
- coverage
- replacement cost verses actual cost option
- value of property
- your credit
- location of property
With that in mind, here is an average Colorado homeowners insurance quote for a home with the following characteristics:
- single family home
- frame
- 10 years old
- Smoke detectors and dead bolt locks
- 5 miles from fire station
- Within 1000 feet of a fire hydrant
Here is the specific coverage that is quoted:
| Dwelling Replacement Cost: | $200,00 |
| Deductible: | $500 |
| Contents Replacement: | $160,000 |
| Personal Liability: | $100,000 |
| Medical Expense: | $1,000 |
The annual premium quote from the leading Colorado homeowners insurance policy, in 2001, for this home was $1,232.
This gives you a rough idea of what to expect. Your particular situation is going to differ, however, if your home and the factors differ. Additionally, insurance rates tend to go up each year, so this quote would likely be much higher, by at least $200 to $400, if it was based on today’s standards.
To view personalized and up to date rate quotes then simply enter your zip code into the free tool at the top of the page to compare quotes from the best Colorado home insurance companies.
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Save Money With A Colorado Homeowners Insurance Company
Perhaps the best news about a Colorado homeowners insurance company is that they will usually work with you to help you find the most reasonable and affordable coverage for your home. There are a few things you can do to help lower your insurance costs.
- Shop Around – The best thing you can do is get quotes from various companies. See who can offer you the lowest price. When the companies are competing for your business they are more likely to offer you the best price possible.
- Know What Factors Influence Your Rate – You should know what the company uses to determine your insurance rate. Most often there will be factors, like the age and location of your home, that you have no control over, but there are also factors, like deductible and coverage, that you can control. Knowing the factors will help you to choose the best options to get the best price.
- Choose A Deductible Wisely – You need to understand that the higher your deductible, which is the amount you will pay out of pocket before the insurance company pays anything, the lower your monthly payments will be. However, choose it wisely because you need to ensure that if something happens you will be able to afford the deductible.
- Look For Discount – You may be able to get a deal from a Colorado homeowners insurance company if you carry multiple policies with them or if you meet other requirements. Make sure you ask for possible discounts.
- Know The Difference Between Actual Cash Value and Replacement Value Coverage – Actual cash value (ACV) coverage means upon loss your insurance company will pay the actual value for your home and property. Replacement value coverage means upon loss your insurance company will pay you what it will cost to replace your home and property. You should weigh your options carefully. Make sure you understand each type of coverage and that you know what you would be able to afford should something happen to your home and property. Actual cash value coverage is usually less expensive than replacement coverage; however, it pays less out upon loss.
Time To Choose A Colorado Homeowners Insurance Company
Now that you know all the details and everything involved with choosing a Colorado homeowners insurance company, you need to get started looking for yours.
You can use the tool at the top of the page to find a Colorado homeowners insurance company that will best suit your needs.
Get started finding Colorado homeowners insurance now!