How much is homeowners insurance in Colorado?
It’s useful to see average insurance quotes, but your actual premium cost will depend on many different factors. Even if one insurer offers particularly high or low rates in general, the company may offer rates that surprise you based on your insurance needs and living situation.
Learn More: How Much Does Homeowners Insurance Cost?
How your policy choices affect home insurance rates in Colorado
The decisions you make when selecting your home insurance policy will affect your home insurance rates. Specifics regarding the policy form, coverage level, and set deductible all affect costs.
Your policy form
Homeowners insurance policies are sold under different forms, such as the most common policy: the special form, or HO-3. The forms mainly vary based on what perils — or causes of loss — are covered. Examples of perils include a hailstorm, fire and smoke, and vandalism.
The standard HO-3 policy, for example, covers your home for losses caused by any and all types of perils, unless they’re specifically excluded in your contract. Common exclusions include floods, earthquakes and other earth movement, war, and power outages.
An HO-5 policy, which generally excludes fewer things than an HO-3 policy, costs more. Other types of homes might be covered under different forms, such as an HO-6 policy for condominiums.
You shouldn’t wait until you need to file a claim to remember what perils your policy covers. Make sure you know this in advance before you buy to avoid coverage surprises later on.
Your coverage level
Similarly, the more expensive your home, the more coverage you’ll need to make sure it’s fully insured. As you increase your coverage levels, your insurance premium will most likely increase as well. Determine the amount of coverage you need before narrowing your options down by affordability.
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A homeowners deductible is the amount you have to pay before insurance kicks in. As you increase your deductible, your premium will decrease. You’ll have to pay your deductible when you file a claim, so ensure you can pay it out of pocket. Consider whether you want higher possible costs and lower guaranteed costs, or vice versa.
How location affects home insurance rates in Colorado
Where you live has a big impact on the types of risks you face, the likelihood of those risks occurring, and how much it might cost if you need to file a claim.
“Wildfires are a serious problem in Colorado. We’ve seen that in recent years,” says Vincent Plymell, assistant commissioner for communications for the Colorado Division of Insurance. “However, hail has been, and continues to be, a major risk for Coloradans. High winds — a joint risk when it comes to both hailstorms and wildfires — also pose serious risks.”
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Table data sourced from real-time quotes from Insurify’s partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer’s unique profile.