Homeowners insurance is typically mandatory in the United States for bank-mortgaged properties. The importance of homeowners insurance in Highlands Ranch is that if anything happens—from a natural disaster to criminal activity—the damages are covered by the policy. However, there are a wide variety of types of homeowners insurance and quality of policies available in Colorado, so it is good to know what to expect.
1. Basic coverage. Most homeowners insurance policies cover a set of specific problems or natural disasters, which should be explicitly listed in detail. Basic homeowners insurance may cover things like fire and smoke damage, lightening strikes, and some forms of vandalism.
2. Extended coverage. Most homeowners insurance policies offer the option of expanding coverage, which is critical in some areas that are prone to specific disasters. Those might include property loss and home damage due to burglaries, ice and snow damage, plumbing freezes, and damage from fallen tree limbs.
3. Exclusions. It is important for homeowners to understand that their policy might not cover specific types of events or problems, which is why consulting with the insurance company or even an attorney can help. Types of events that might not be covered include things like flood and earthquake, but it depends on the parameters of the policy.
4. Structural and property damage. Homeowners insurance covers both structural damage to the house, as in situations where a tree limb falls on it, or inside belongings and personal effects, such as loss from a robbery or fire. However, the policy will vary in terms of how much is covered, and what items are insured. It is always a good idea to provide a detailed inventory of home items that are going to be covered under the policy, and you can also opt into extended coverage for special effects like art or a wine collection.
