Insurance has become a bigger part of the home-buying conversation in Colorado. Costs have risen in many areas, largely because of hail and wildfire, and terms differ more from one policy to the next than many buyers expect. Getting quotes early avoids surprises.
Start early
Ask for insurance quotes as soon as you have a home you are seriously considering, and well before your deadlines. Your lender will require a policy before closing, and premiums can affect what monthly payment you can comfortably afford.
What to compare
- Coverage amount. Confirm the dwelling coverage would actually cover rebuilding, not just the purchase price.
- Deductibles. Wind and hail deductibles are often a percentage of the home's insured value, so a claim could mean a large out-of-pocket cost. Compare them to your emergency savings.
- Roof terms. Some policies pay depreciated value on older roofs or limit coverage by roof age.
- Replacement cost versus actual cash value for the home and for personal belongings.
- Liability limits. Consider an umbrella policy if you have significant assets.
What standard policies usually do not cover
- Flood. It requires a separate policy, even in areas that do not look flood-prone.
- Sewer or water backup, which often needs an added endorsement.
- Earth movement and some kinds of ground-related damage.
Ways to keep costs reasonable
- Shop with more than one insurer or an independent agent.
- Ask about discounts for impact-resistant roofing, security systems and bundling policies.
- Maintain the roof and keep records of updates.
- Review your coverage every year, since values and terms change.
For high-risk areas
Properties in the foothills or near open land can be harder to insure. Get a written quote before you commit, and see the wildfire topic for more.
General information only. Talk with a licensed insurance professional about your situation.