Summer is a season many people get excited about. However, it also brings in some unique dangers, especially for homeowners. Summer storms can cool off those hot days, but they can also bring high winds and hail with them. Hail is one of the biggest […]
Tag: property insurance Colorado Springs
If you’re like a lot of people, you bought home insurance in Colorado Springs to buy or rent a house. You didn’t think about the amount of coverage you had as much as the cost of the premiums. However, it’s important to know how much […]
If you are financing the purchase of your home, you’ll be required to carry a minimum amount of coverage on your home insurance in Colorado Springs. However, if your home is paid off, you will not have any special requirements. This leaves many homeowners wondering just how much coverage they need.
Two Components of Coverage for Home Insurance in Colorado Springs
You must consider two aspects of coverage for homeowner’s insurance. First, you must think about how much it would cost to replace your home if you should have a fire, earthquake or other disaster. Think about the cost of materials which are likely to be higher now than when the home was built. Labor costs go up as well. You would want to be able to rebuild your home if it should be damaged beyond repair.
Part of this aspect of insurance includes the personal belongings you have in the house. Think about how much it would cost to buy new furniture, clothing, kitchenware and even toys or electronics. The costs add up quickly, but too often, people try to get by with less coverage.
The second component to home insurance in Colorado Springs is liability coverage. This type of insurance protects you if someone should get hurt on your property. They might slip and fall and twist an ankle or they might fall off a trampoline and hit their head. Both types of coverage are important and must be considered separately.
How Much Coverage Do You Need?
For the coverage on your home and personal belongings, you want to carry enough insurance to pay for replacement of the house and everything you own. You may need to sit down and figure the costs on your own. You can also talk to an insurance agent to find out how much coverage they recommend.
When it comes to liability insurance, you need to think about protecting yourself if someone gets injured. The insurance coverage you have will pay out to the maximum limit, but you are still responsible if the costs go beyond that amount. If you have a lot of assets, you may end up paying a lot more for a serious injury.
Many people don’t carry enough insurance. They choose the policy with the lowest amounts to save on their monthly premiums. However, they don’t think about the worst-case scenario if something should happen. It’s only when the unthinkable occurs that they wish they had more insurance. By then, it’s too late.
When talking to an insurance agent, don’t automatically assume they are just trying to sell more coverage. Agents look at the big picture, including the risks of liability and your financial situation. They may recommendations based on the amount of coverage they think you need to cover your risk. Listen to their advice and be prepared for something if an incident should occur. You don’t want to wait until a claim has been filed and wish you had better coverage.