Protecting Your Home and Belongings: A Homeowners Insurance Check-up

In the wake of the tragic Marshall Fire that struck our greater Boulder County community, it's become painfully clear how crucial it is to have the right homeowners insurance coverage in place. We've heard far too many heartbreaking stories of people discovering that their insurance falls short when it comes to rebuilding their lives after a catastrophe. To ensure you're adequately protected, here's a comprehensive guide to navigating the world of homeowners insurance.

1. Review and Update Your Policy

One of the most critical steps you can take is to call your insurance company and schedule a policy check-up. Even if you have a trusted insurance agent, it's essential to take responsibility for understanding your coverage. Policies may need updating, especially if it has been several years since your last review. Your home is likely your most valuable asset; protect it by comprehending the coverage and policy benefits.

2. Understand Different Coverages

Reading the fine print and understanding the various coverages within your policy is vital. Don't assume everything is covered; some crucial elements, like the cost to rehab land, might not be. Knowing what isn't covered will help you make informed decisions about property improvements and assess the risk of loss accurately.

3. Additional Living Expenses (ALE) Coverage

Check your policy for Additional Living Expenses (ALE) coverage, which can assist with expenses while you're displaced from your home. Most policies should cover up to 12 months or longer of living expenses, but confirm this with your agent.

4. Payout for Not Rebuilding

If you decide not to rebuild and move out of the area, understand how your policy handles this situation. Most policies will pay the coverage for the dwelling (minus any mortgage payout), but you might not receive the extended protection amount on top of the dwelling coverage. Discuss this scenario with your agent to know exactly what to expect.

5. Be Cautious When Shopping Around

If you've been with your insurance company for a long time and have a solid policy, be cautious about shopping around for something cheaper. While you may save on premiums initially, you could be sacrificing valuable grandfathered benefits or receiving a weaker policy. Shopping around is wise, but make sure you conduct thorough research.

6. Renter's Insurance is Essential

Renters, don't overlook the importance of renter's insurance. It's incredibly affordable and can cover your belongings as well as lodging if you're displaced. Landlords, consider making renter's insurance a requirement to reduce liability in the event of property damage.

7. Condo Owners: Know Your Coverage

Condo owners should understand the distinction between what's covered by their HOA's policy and their personal homeowner's policy. Most condo policies cover from the "walls-in," while the HOA may cover the exterior. Ensure you're well-informed about your condo's insurance policies and deductibles to avoid unexpected assessments.

8. Document Your Personal Property and Improvements

Regularly take videos and photos of your property, including any significant improvements. This documentation will assist your agent in calculating your personal property coverage, which is separate from your dwelling coverage.

Remember, this guide is not a substitute for professional insurance advice. Consult your insurance agent to verify your coverage and address any specific questions or concerns. While we hope you'll never face a catastrophic event, taking these steps will help you prepare for the unexpected and mitigate any potential financial surprises. Your home is your sanctuary; protect it and your peace of mind with comprehensive homeowners insurance.