If you are looking to get homeowner’s insurance to cover your home, how much are you likely to end up paying? The answer is a bit more complex than giving out a simple dollar amount, sadly.
To begin with, you must consider the value of the house. A house that costs 200,000 dollars in Colorado is not going to cost the same to cover as a house that costs double. Differences in size and construction will come into play. Speaking very generally, here in Colorado you are going to end up paying between 1200 and 2500 dollars annually for a house that costs in the 250,000 to 400,000-dollar range. That’s not a bad premium, and for some people, it may even be close to what they pay annually for car insurance. Also remember that you want your insurance to cover any work you need, whether it’s roof repairs, window replacement, or something else.
Then you must take into consideration the location of the house. Colorado homeowner’s insurance will tend to be a bit higher than you would find in other parts of the country. There are various reasons for this, but one of the big ones is that Colorado is prone to some more extreme weather conditions, like hail. These conditions cause additional damage to homes, and when those homes are damaged, the homeowner’s insurance has to pay out to cover the cost of repairs. Remember, the insurance company seeks to make a profit, too.
Next, you must consider deductible. In general, the lower your deductible is, the more you have to pay in premiums. However, the upside is that, when something happens, you don’t have to pay as much. When it comes to deductibles, though, you have to be wary. Some insurance policies will have varying deductibles for different things. In some cases, for example, the deductible for something that happens more commonly, like hail and wind damage to homes in Colorado, will be based on a percentage of the value of the home. If you have a 400,000 dollar home in Colorado and you have to pay a percentage of the value in the event of wind or hail damage, even at 1 percent you’re spending 4,000 dollars.
If there is one thing to be taken away from this discussion, it is that you must read your policy carefully. A policy may look attractive because it has a low monthly cost, but it can have a high deductible to be paid in the event of tragedy. Or the price may be reasonable and your deductible may seem low, but that deductible may only apply to rare situations, and not to the more common issues like wind and hail damage. It is important that, before you ever sign for an insurance policy, you understand what it says, what it covers, and how much it covers. If your insurance premiums are cheap, but the deductible is something that you cannot possibly afford, then your policy is not going to be of much help to you in the event of damage to your home.
It may seem like a tired piece of advice, but it is so important, especially in insurance, that you read the fine print.
To begin with, you must consider the value of the house. A house that costs 200,000 dollars in Colorado is not going to cost the same to cover as a house that costs double. Differences in size and construction will come into play. Speaking very generally, here in Colorado you are going to end up paying between 1200 and 2500 dollars annually for a house that costs in the 250,000 to 400,000-dollar range. That’s not a bad premium, and for some people, it may even be close to what they pay annually for car insurance. Also remember that you want your insurance to cover any work you need, whether it’s roof repairs, window replacement, or something else.
Then you must take into consideration the location of the house. Colorado homeowner’s insurance will tend to be a bit higher than you would find in other parts of the country. There are various reasons for this, but one of the big ones is that Colorado is prone to some more extreme weather conditions, like hail. These conditions cause additional damage to homes, and when those homes are damaged, the homeowner’s insurance has to pay out to cover the cost of repairs. Remember, the insurance company seeks to make a profit, too.
Next, you must consider deductible. In general, the lower your deductible is, the more you have to pay in premiums. However, the upside is that, when something happens, you don’t have to pay as much. When it comes to deductibles, though, you have to be wary. Some insurance policies will have varying deductibles for different things. In some cases, for example, the deductible for something that happens more commonly, like hail and wind damage to homes in Colorado, will be based on a percentage of the value of the home. If you have a 400,000 dollar home in Colorado and you have to pay a percentage of the value in the event of wind or hail damage, even at 1 percent you’re spending 4,000 dollars.
If there is one thing to be taken away from this discussion, it is that you must read your policy carefully. A policy may look attractive because it has a low monthly cost, but it can have a high deductible to be paid in the event of tragedy. Or the price may be reasonable and your deductible may seem low, but that deductible may only apply to rare situations, and not to the more common issues like wind and hail damage. It is important that, before you ever sign for an insurance policy, you understand what it says, what it covers, and how much it covers. If your insurance premiums are cheap, but the deductible is something that you cannot possibly afford, then your policy is not going to be of much help to you in the event of damage to your home.
It may seem like a tired piece of advice, but it is so important, especially in insurance, that you read the fine print. 
