Recently the Denver Post reported that Colorado has made a new Top 10 list, although this time, not one that we would like to be on. Colorado is frequently listed as a top 10 state for vacationing, quality of life, and health. Now, we can add to that list- among the highest for insurance claims for home damage due to a natural catastrophe.
Some places in Colorado have experienced severe storms, and others, fires, that have resulted in property damage. In fact, my own property was damaged from a hail storm last summer. It is hard for me to think of it as a natural catastrophe- the storm lasted about 10 minutes producing golf ball sized hail, but none the less, resulting in needing to replace our roof, and because of the number of properties that were damaged, was classified as a catastrophe.
Home Buyers and Home Owners in Colorado- Make Sure You are Covered!
While the number of total claims has reduced dramatically (between 30-40% since 1997), the amount per claim has increased. It is, of course, impossible to predict what the future holds, and the weather is constantly changing and causing trouble in new and different areas (like Hurricane Sandy), it is possible that home insurance rates in Colorado could increase to cover the costs.
It is important as a potential home buyer in Colorado, anywhere, to be properly insured and understand your coverage. The fact is that these things are unexpected, and you want to be sure that you have proper coverage for your property and all of your other assets. One particular line of coverage that is not always standard coverage for building code upgrades. This may be worth adding to your insurance, depending on your situation.
Ask Your Buyer’s Agent About the Recent History of Your New Home
If you are new to the area, you can always discuss with your buyers agent specific lines of additional insurance coverage for your property depending on where you want to live. Remember, your buyers agent always has your interests protected!