Offered by: Melissa Rippy – Rippy Insurance Agency / Allstate
According to a Policygenius analysis of 2022 premiums, Colorado homeowners pay an average of $208 per month or $2,496 per year for home insurance for a policy with $300,000 in dwelling coverage. This means that home insurance premiums in Colorado increased at almost double the rate of inflation (8.6%) from May of 2021 to May of 2022. There was an increase of nearly 18% in premiums due to a mix of rising inflation, labor shortages and higher rebuild costs. This is compounded by the wake of recent natural disasters like wildfires and hailstorms. The Marshall Fire from December of 2021 was the most destructive in state history, and that combined with record-high inflation is forcing replacement costs and insurance premiums to increase.
Insurance premiums are based upon the cost to rebuild a home, not the market value. Allstate will annually adjust the replacement cost for our policyholders to keep up with the inflation and market. As a result of the hot real estate market and rising material costs, most Coloradans have seen their homeowners insurance increase from the prior year.
When you’re looking at your policy in the new year, make sure to review your dwelling replacement amount, which is what you would receive if your house was completely destroyed. There is additional coverage offered through Allstate called Building Structure Reimbursement Extended Limits that can increase the cost to rebuild above the dwelling amount.
We will be fast approaching hail season, so make sure to review your deductible for a wind and hail loss. We are seeing some insurance carriers mandate a percentage deductible for these type of losses, which is a terrible thing to experience. That means you’d have to come up with that percentage of your dwelling coverage before the loss would be paid by the insurance company. For example, if you have a 1% deductible and the dwelling is insured for $500,000, that’s a $5,000 deductible coming out of your pocket.
Although American Family was found to offer the “cheapest” homeowner insurance, Allstate was named the best company for most Colorado homeowners. We are here to help! Call or text 303.219.1470 for a review of your current policy. Hindsight is 20/20 but not when it comes to insurance. Make sure you’re covered before it’s too late.