As a Colorado homeowner, you know all too well that Mother Nature can have a mind of its own. From thunderstorms to blizzards, you want to ensure your property and, most importantly, your family stay safe. In the event of damage, the last thing you want to worry about is a lack of coverage from your homeowner’s insurance.
At Alliance Insurance of the Rockies, we’re passionate about giving our clients superior coverage options. If you’re wondering which natural disasters have coverage under homeowners insurance in Colorado, you’ve come to the right place. Let’s break it down.
Types of Homeowners Insurance Policies
There are various types of homeowners insurance policies that have different benefits, including:
- HO-1: HO-1 is the most limited homeowners insurance policy. It only covers your residence, not any of your personal belongings. This policy only covers certain disasters like fire, lightning, hail, and volcanic eruptions. Because this policy is so limiting, insurance companies don’t typically sell it anymore.
- HO-2: HO-2, the next level up, covers the primary dwelling plus personal property caused by the disasters listed in HO-1.
- HO-3: HO-3 is one of the most common homeowners insurance policies. It covers your home plus any additional structures (e.g., sheds, greenhouses). It also covers personal property, loss of use, liability, and medical payments.
- HO-4: HO-4 is specifically for tenants and is often referred to as renters insurance.
- HO-5: HO-5 is the most comprehensive homeowners insurance plan. You get main structure, personal property, loss of use, liability, and medical payment coverage. You also get open perils policies. Typically, it’s as expensive as it’s comprehensive.
- HO-6: HO-6 is coverage for condo owners.
- HO-7: HO-7 covers mobile or manufactured homes.
- HO-8: HO-8 covers older properties that would be more costly to rebuild than they’re worth on the market.
Natural Disaster Coverage
A peril is an event that occurs that may cause damage to your home. Whether or not your homeowners insurance covers specific perils can be found in your policy. The most common mishaps typically covered by homeowners insurance policies include:
- Fire and smoke
- Lightning damage
- Windstorms and hail
- Falling objects
- Water damage
- Ice, snow, and sleet
- Vandalism
- Theft
- Explosions
What’s missing from this list? Some of the two most common natural disasters in Colorado — floods and earthquakes. Unfortunately, homeowners insurance cannot cover them.
According to the Colorado Department of Local Affairs, the frequency of natural disasters in the state is up by 275% over the last 20 years. Therefore, it’s crucial to understand the ins and outs of your policy to know precisely what your coverage is.
Colorado’s Most Common Natural Disasters — Are They Covered?
Frequent natural disasters include fires, floods, storms, tornadoes, droughts, and earthquakes. Let’s discuss what may or may not be covered under your Colorado homeowners insurance policy.
Wildfires
High winds and drought conditions are the perfect recipe for wildfires in Colorado. Luckily, homeowners insurance covers fire damage — from HO-1 to HO-5.
Floods
Unfortunately, most of the damage associated with flooding isn’t covered by homeowners insurance. If you live in a flood zone in Colorado, it’s best to purchase a separate flood insurance policy in addition to your homeowners insurance.
Storms
Severe storms and hail are generally covered. Additionally, most homeowners insurance policies in Colorado will cover damage caused by the weight of snow and ice on your roof and pipe issues.
Earthquakes
Even though earthquakes aren’t rare in Colorado, they aren’t covered by most homeowners insurance policies. If you want earthquake coverage, you must purchase a separate policy.
Tornadoes
While tornadoes aren’t explicitly listed as named perils, wind, hail, and lighting are. So, if your property gets damaged by a tornado, you’ll likely have coverage.
Protect Your Home With Alliance Insurance of the Rockies
At Alliance Insurance of the Rockies, we know your home is likely the most valuable investment you’ll ever make. You want to review all of your homeowners insurance options before a natural disaster can wreak havoc on what you care about most.
We’re happy to match you with the best home insurance policies in Colorado that meet your unique needs. Our expert team of home insurance brokers will get to know you and what you need to make the right decisions for your home and family. For more information, contact us today for a no-obligation quote.
