It’s always an excellent time to reach out to your insurance agent and have them review and evaluate your current homeowners, auto and umbrella policies. I am not an insurance agent, but I deal with these issues for my personal coverage and my clients on a regular basis. These are some of the things I have learned.
Colorado Springs, CO September, 2018
It is very important to make sure that you know exactly how your insurance policy will handle damage to the roof of your home. Many policies currently have a separate roof deductible that can be equal to 1% to 2% of the total value of your home. This is completely separate from the deductible you’ve chosen for other losses on your policy. Although this is not true of all policies, this is becoming a more common occurrence, especially in Colorado with our extensive damage due to hail claims from just one storm. If your home is worth $350,000, your deductible could be anywhere from $3,500 to $7,000 on a roof replacement. If you have a $1,000 standard deductible on your policy, you may be under the impression that this will also be the deductible for roof replacement. Be sure that you clarify with your insurance company exactly what deductible you have and if it is different for your roof. You don’t want to have an unfortunate surprise. This is also a good time to review your standard deductible and see if the difference in pricing between various deductibles might make sense for you. Be sure to go over any extra coverage that you might need for special possessions or things of higher value. You may want to consider bundling any of your other insurance needs and possibly adding an umbrella policy. Umbrella coverage costs very little money when added to your current coverages for home and auto.
LOSS ASSESSMENT COVERAGE is usually not needed for single-family homes even if they are in an HOA community. If you own other property where the HOA provides coverage for the exterior of your home such as exterior maintenance, the roof, etc., and for the surrounding homes, ask your insurance carrier to talk to you about adding loss assessment coverage to your policy. The cost is extremely low and it pays potentially thousands of dollars for an assessment caused by community damage that is not covered adequately by the HOA reserves or insurance. I recently had a patio homeowner who was assessed $7,000 by her HOA for massive hail damage to the roofs in the community. Her loss assessment coverage paid that money for her.
DO YOU HAVE ENOUGH COVERAGE? Be sure to review the amount of coverage you have for the replacement of your home (in case of fire) and your contents. Have you done any significant remodeling or additions lately? Did you finish a basement or update a kitchen or bath? Did you build an outdoor kitchen or add a patio cover? Did you add central air? Do an annual review of any upgrades to your home and discuss with your insurance agent what the replacement value will be. There are different types of replacement cost valuation so make sure that you have the kind of coverage that gives you complete replacement of what you currently own.
If you have any questions about this information or would like to discuss the value of your home, please reach out to me as your neighbor and your neighborhood real estate professional.
RE/MAX Properties, Inc.