A home is the biggest asset for most Americans, even after the housing bubble burst.
In Colorado home prices are booming, and having the right homeowner’s insurance can help you protect that asset. Most people believe a cookie cutter home insurance policy is all they need, until disaster strikes. In Colorado two of the most common types of claims filed come from wind and hail. Did you know many insurance carriers have begun placing a separate deductible on wind and hail coverage? It has become a popular trend in the insurance industry to do a percentage deductible on wind and hail instead of your typical fixed deductible. While you may think you have a $1,000 deductible for all losses, if you don’t review your policy often you may find that you are stuck with a 1% deductible. On a $350,000 home that means a claim for wind or hail damage is going to cost you $3,500 out of pocket.
At Moreland Risk Management we make sure all of our clients are well informed when purchasing homeowner’s insurance, and that includes a comprehensive review of the coverage available to you. Our work doesn’t stop when coverage is in place. Accidents and weather are unavoidable, and our team has the expertise you need on your side when dealing with the insurance company should you need to file a claim.
There are many different coverage types available on a homeowner’s insurance policy. The most common are:
- Dwelling Coverage – All homes should be insured for replacement cost, which means the amount of dwelling coverage on your policy should be enough to rebuild your home exactly as it was prior to a loss. Replacement cost and market value (what your home is worth) can vary by tens of thousands of dollars.
- Other Structures – This is what covers any detached structures on the property with your home. Things like detached garages, fences, and sheds.
- Personal Property – Imagine cutting the roof off your home and flipping it upside-down. The items that would fall out are your contents, or personal property.
- Liability – This pays for damages to people injured by you or your property. This can extend beyond the lot your home sits on. Dog bites are a common liability claim that may take place away from your home.
- Medical Payments – This pays for medical expenses for others who are injured at your home. For instance, if a nail were to pop up out of your hardwood floor and a guest cuts their foot requiring stitches, your medical payments coverage would protect you from having to swallow that expense out of your own pocket.
- Endorsements – This is where homeowners insurance can get really complex. There are a large number of endorsements available to homeowners. Water back-up coverage is an extremely important endorsement to have. Even if your home is one of the highest points on the block, you can still be at risk for a water back-up. If someone flushes baby wipes or other items and they plug your drain water can back up into your home, and without a water back-up endorsement the cost of repairs may end up coming out of your pocket
It is extremely important to review your homeowner’s coverage from time to time. If you made some improvements around the house, or the cost of construction increases, reviewing your coverage will make sure that when disaster strikes you will be taken care of.
These are just a few of the coverage options that should be considered when purchasing homeowners insurance. Let the team at Moreland Risk Management walk you through the steps to ensure you have the right coverage at an affordable price. Request a free homeowner’s insurance quote today.