I recently went to a continuing education class on homeowner’s insurance and thought I would pass along some of the information I found interesting and important. In the Colorado contract to buy and sell, Buyers have the right to determine the availability and cost of insurance on the home they are planning to purchase. Having a great insurance agent is key, and also keep in mind the following.
- Insurance agents do a soft pull on credit, so it does not hurt to have several agents do their research and give you quotes
- Potential High Risks for a Home – Layered Roofs and Wood roofs (city of Boulder requires all wood roofs to be replaced by January 1, 2014) Mountain Location, Older Home (pre-1960), Flood Zone (keep in mind 30% of all flood claims are not in a high risk flood zone, might be worth considering flood insurance if you are at any sort of risk).
- You should have separate coverage for your personal property. A Scheduled Personal Property (SPP) Rider is for special items (jewelry, antiques). Harder to replace items.
- Always ask what the exclusions are in the policy you have been quoted on. They are not listed anywhere in the policy.
Homeowners insurance is your protection against risk/loss and for protection of your valuables (family, heirlooms, etc.) Lastly, make sure you know the replacement cap on your home. It will most likely be 110-125%. You also want to make sure you can comply with ordinance or law (bringing your home up to today’s codes) should it need to be replaced.