Home Insurance in Colorado

Apr 29, 2021 | From The CEO, Personal Insurance

Colorado is known for its beautiful sceneries, natural landscapes, and numerous outdoor recreational activities. Living in Colorado means waking up every day to a serene and peaceful environment surrounded by nature. In addition to this, Colorado is considered one of the best states to move to in 2021. So if you are looking to lead a happy life, Colorado is a good option for you to build your lifelong home.

However, like any other state in the country – living in Colorado also has some specific perils brought about by natural disasters. According to a study, Colorado is the 5th state in the U.S. most at risk for natural disasters. Natural disasters ranging from hail storms, winter storms, tornadoes, and wildfires may strike at any time. As a result, they can cause property damage which may result in tremendous unexpected financial losses on your end. A household in Colorado may incur property damage worth $220 per year.

In light of this, one way of minimizing the risks caused by unexpected natural disasters is by getting good home insurance for your house. Getting good insurance coverage will not only serve as your safety net in case of financial losses brought about by natural disasters.  But it will also reimburse the expenses in case you need to repair any property damage in your home. Since your home is a lifetime investment, make sure that it is well-protected by the best insurance coverage that you can afford.

Currently, there are different kinds of home insurance policies available in the market. These insurance policies differ in their coverage and the price of premiums that you have to pay. If you are looking for a home insurance policy for your house, always check its coverage and your budget. On top of this, you also have to take into consideration your specific needs and the risks that you want to secure your home against.

Before diving into buying home insurance, make sure to do your own research about the different kinds of policies available in the market. Here are some helpful tips that can guide you in getting the best home insurance policy possible.

What is homeowners insurance and how does it work?

Home insurance covers your financial losses and repair costs if ever your house or your personal belongings inside your house get damaged or lost as a result of a natural disaster, fire, or an accident in your property. A standard homeowner’s insurance usually covers financial loss brought about by natural disasters, accidents, or even theft in your home. Once you suffer any damage or financial losses due to a peril that is covered by your insurance policy, then you can simply file an insurance claim before your insurance provider. Upon the approval of your insurance claim, you will be given the money to cover the costs of repairs, replacement, or any other expenses.

Where Do I Buy Colorado Home Insurance

Searching for the best home insurance fit for your specific needs may be difficult and time-consuming due to the huge number of different insurance policies available in the market – each with varying coverage and price ranges. Getting a reliable insurance agent is essential as they can ease your burden and more importantly, provide you with the best insurance options available according to your specific needs. Moreover, they can guide you in your insurance application process to make sure that you are getting the best insurance policy possible.

If you are looking for an insurance policy fit for your budget, one practical tip is to get at least three quotes before buying a particular home insurance policy. A quotation or quote in short is an estimated cost of the insurance premiums that you would have to pay for your insurance coverage.

An insurance agent can make this selection process easier for you as they would be the one who will search for the best insurance option among all the multiple insurance carriers available in the market. With this, you do not need to go through the stressful and lengthy process of going to each insurance carrier in your state. Instead, your insurance agent will provide you with the best budget-friendly insurance options for you to choose from.

For your insurance agent to get an insurance quote from an insurance carrier — it is essential that you provide them with the correct information about yourself and the home that you want to insure. This information is crucial as they are used by the insurance carriers in assessing how much you would have to pay as an insurance premium.

What is the information needed to get a homeowners insurance quote?

To get a quote, you need to provide the following information:

●        Personal information – this includes some basic information about yourself like your name, date of birth, social security number, marital status, updated contact information like your email address or your phone number. In addition to this, you also need to provide information related to your current job and your income so that the agent can determine your insurance budget.

●        House information – the insurance agent will also ask about some details regarding the house since this is important in assessing the insurance premiums that you have to pay. Information such as the year your house was built, the duration you lived in the house, recent home renovations, and the number of people who currently live in the house is usually asked. Questions relating to your pets may even be asked.

●        Other information – details relating to your history of insurance claims are also relevant. You may be required by potential insurers to share information about your previous home insurance claims. Moreover, you will also need to disclose if your home was previously insured and its corresponding insurer.

In addition to this, the insurance companies may even use external sources of information to gather more information like your credit score.

Why should I provide all of this information?

These questions are asked by the insurance agent since they are crucial details that they would have to consider in approving your insurance application and in assessing the quote or price of the insurance premium that you have to pay. Giving the most accurate and transparent information to your insurance agent is really important as you do not want your home to be underinsured. 

Different Types of Home Insurance Policies

There are various kinds of home insurance policies available in the market, they differ on the specific risks that they cover and their prices.

The first kind is the HO-1 Basic Policy Form.

This is the most basic form of home insurance which insures your home against the following perils: fire, lightning, windstorm and hail explosion, riots and civil commotion, theft, vandalism and malicious mischief, aircraft, vehicles, smoke, volcanic eruptions.

Nowadays, home insurance is becoming more and more essential due to the increasing instances of natural disasters and civil unrest. That is why getting home insurance is one way of protecting you and your family from unexpected losses. Investing in good insurance is one way of securing your future and you can do this without breaking the bank.

The Basic Policy Form is the most budget-friendly home insurance available since they only protect your house against these basic perils. So if you are just starting out and do not have a big budget to spend, but you still want to protect your home this type of home insurance is perfect for you.

The second kind of home insurance is the HO-2 Broad Form.

From the name itself, this specific type of insurance policy provides broader protection for your house and your personal properties inside it. In addition to the specific perils enumerated in the Basic Policy Form, this Broad Form policy also protects you against damages resulting from frozen pipes, accidental discharge or overflow of water or steam, power surges, and other perils as long as it is specified in the policy.

The third kind of home insurance is the HO-3 Special Form

Also known as the open perils coverage, this type of home insurance is the most popular one in the market. If you choose this type of home insurance, your house will be protected against any and all kinds of perils except those which are specifically excluded in the policy. On the other hand, your personal properties shall be protected against damage or losses as long as the peril is specifically stated in the policy.

The fourth type of home insurance policy is the HO-5 Comprehensive Form

This is very similar to the HO-3 Special Form. However, they have fundamental differences since comprehensive home insurance protects your house AND your personal properties against all kinds of perils. On the other hand, in HO-3 special form – you would have to specifically state the perils in the policy to protect your personal properties against them. While comprehensive home insurance is a lot pricier than others, it provides the greatest coverage among all the other types of home insurance policies. So if you are willing to spend more to fully protect your home, this type might be best for you.

The fifth type of home insurance is the modified coverage form policy which is also called the HO-8 policy form.

This home insurance policy is dedicated to older houses and buildings wherein the costs of rebuilding the house or its replacement costs are more than the market value of the house. This type of insurance is a named policy which means that the specific perils are expressly stated in the policy.

The modified coverage form protects your home from the following ten specific perils: aircraft, vehicles, civil unrest and riots, explosions, theft, vandalism and malicious mischief, hail storms and sandstorms, lightning, fire, smoke, and volcanic eruptions. Unfortunately, this type of home insurance does not protect you against earthquakes, floods, or winter storms. In a modified coverage form policy, the amount of reimbursement that you can claim from your insurer depends on the actual cash value of the house rather than its replacement costs.

 The HO-7 Mobile Home Form

If you are living in a mobile home or a manufactured home, there is a specific type of home insurance specifically for you. The HO-7 Mobile Home Form is extremely similar to the HO-3 Special Form home insurance since they both protect your house against all kinds of perils except the perils expressly excluded from coverage. In addition to protecting your mobile home, this policy also secures your personal belongings if it was damaged or lost as a result of ‘named peril’ or a peril specifically stated in the policy.

 The HO-4 Contents Broad Form

There is also a special type of insurance dedicated for people who are renting out their homes or apartment units. The HO-4 Contents Broad Form or the so-called ‘renter’s insurance only covers the personal properties in the house and not the house itself. In addition to this, this insurance policy provides additional living expenses in case the renter is displaced and protects the renter against liabilities.

This policy secures the personal properties inside your house against 16 perils: fire and lightning, explosion, smoke, sudden and accidental tearing apart, burning, bulging, cracking, windstorms and hail, damage from accidental discharge or overflow of water or stream ice, snow, or sleet, freezing, volcanic eruptions, theft, riots and civil commotion, vandalism and malicious mischief, aircraft, vehicles, falling objects, and sudden and others that are specified in your policy.


With natural disasters becoming more and more frequent nowadays, you must protect your most precious investment which is your home. One way of doing so is by getting reliable home insurance that can cover the repair, rebuilding, or replacement costs of your house together with your personal belongings in case of loss or damages as a result of specific perils. In finding the perfect home insurance for you it is important that you take into consideration your specific needs plus your budget. Currently, there are different kinds of home insurance policies available in the market depending on the extent of its coverage and its price.

Selecting the most appropriate home insurance can be quite tricky and time-consuming since there are a lot of insurance providers available. That is why consulting with an insurance agent is important since they can match your specific needs with the best insurance policy available.

We are here to help!

Advantage Insurance Solutions is here for your Home Insurance needs. Our friendly and reliable team insurance expert will help you in finding the best policy suitable for your needs and your budget. Start protecting your home by giving us a call today!