Those who own investment properties need to have dwelling property insurance in Colorado Springs. Another term used for this is dwelling coverage, and it is typically part of a homeowner’s insurance policy. This specific type of coverage is used as a means to help pay for repairing or rebuilding the physical structure of the property as long as the damage was caused by a hazard that’s covered within the policy.
Know What Is and Is Not Covered
When choosing dwelling property insurance, it is important to realize that plans from various companies could provide different coverage. Those who are seeking insurance coverage will find that things such as fire and smoke, hail, vandalism, explosions, damage from a vehicle, falling objects, etc., will generally be covered by this type of insurance policy.
Most of the time, floods and earthquakes will not be covered. Sewer backups, which many would assume to be in the policy, may not be covered either. Additionally, certain items on the property that are not part of the dwelling will not be covered. This might include a fence, shed, or a detached garage. An attached garage, on the other hand, will likely be covered.
Nothing should ever be taken for granted. Instead, it is important to go through the entire policy item by item to determine what is and is not covered. This should be done before opting to buy the insurance policy. In the event of damage to the dwelling that is covered by the policy, the claims payment could help to cover the costs of repairing or rebuilding.
Why is Dwelling Property Insurance in Colorado Springs Necessary?
Dwelling property insurance is part of the homeowner’s coverage. When someone is paying a mortgage on a home, the bank or other entity that financed the home needs to make sure the investment is protected. They will require that the owners have a homeowner’s insurance policy in place prior to closing on the sale of the house. Everyone who owns a home will need to have dwelling coverage.
How Much Dwelling Coverage is Needed?
The answer to this question can vary from one home to the next. One of the common mistakes made when buying insurance is using the market value or assessed value of the property to determine the amount of coverage to buy. This is not the same as the replacement cost. The replacement cost coverage, or RCC, is the actual cost that would need to be paid when repairing or rebuilding the home with materials that are similar in quality and kind without depreciation deductions. Typically, owners will want to use the RCC when determining how much coverage they will need.
Determining this number can be difficult. It would require knowing what builders charge per square foot in the Colorado Springs area. This would then need to be multiplied by the number of square feet in the home. Owners also have to think about the other details of the home. For example, does it have special trim? Are there hardwood floors? What are the fixtures like? All the little details of the dwelling can change the overall RCC value. It can be difficult for many owners to determine on their own.
Rather than attempting to figure out the RCC value by themselves, homeowners should instead work with an insurance agent to discuss the replacement cost value of the home. This will make it easier to then choose the right amount of coverage for the property.
Why Choose Landlord Protection Insurance in Colorado Springs?
Those who own rental properties will likely need to have more than just coverage on the dwelling. They will also need to have landlord protection insurance in Colorado Springs. These policies are for those who are renting out investment properties they own. There will generally be two different types of coverage, and both should be used.
First, there is property protection insurance. This part of the policy will help cover any damages to the physical property when it is rented out, including the dwelling. It will also include equipment that is kept at the property to maintain it. The coverage would include not only the dwelling but also detached garages, lawn mowers, fences, etc.
Second, there is liability protection insurance. This part of the policy will help pay for the legal expenses and another person’s medical bills if someone is injured on the property where the landlord has been deemed responsible for that injury.
Reasons to Choose a Quality Independent Insurance Agent
Going directly to an insurance company to speak with an agent is often not a good idea. Those agents have an agenda to sell the policies their company provides, even though they may not always be in the best interest of the property owner. This means that they may not be able to provide all the coverage needed, and they may not have the best or most cost-effective coverages.
Instead, when shopping for dwelling property insurance in Colorado Springs, working with an independent insurance agent tends to be a better option. They work to find the best coverage for dwelling property insurance and landlord protection insurance in Colorado Springs. Working with someone local can also help ensure that they understand local needs. They often have the know-how to ensure that the correct type and the right amount of insurance are purchased.
An independent agent can also explain the other types of insurance that might be needed, whether the owner has a residential property or an investment property. Knowing and understanding all the options that are available will make it easier to get the right coverage for each type of property.
Quality Insurance Provides Peace of Mind
A home is a major investment and is likely the biggest investment that most people make in a lifetime. Not having enough insurance coverage can lead to many financial problems. Taking the time to find quality coverage provides peace of mind for the owners and protects this valuable asset at the same time.