Colorado Homeowners Percent Deductibles
In the past few years Colorado has been hit with forest fires, hail, and flooding that resulted in large homeowners insurance claims. Some companies have changed their insurance policies in Colorado as a result of these large catastrophic claims. A few well known insurance companies apply a wind or hail deductible equal to a percentage of the insurance value of the home. Other companies are applying this percent deductible for any claim.
So for example:
- Insurance value of home: $350,000
- 1% deductible: $3500
Another roof related change is no longer covering the roof with a replacement cost policy (cost to replace or repair the roof). The now cover the roof with the actual cash value. This is the depreciated value of the roof as a maximum payout.
So for example:
- Replacement cost of roof: $7,000
- Actual Cash Value of roof:$3,500
- Maximum payout for a roof on this policy would be $3500 (not including the deductible)
Our independent agency has found that most insureds do not pay enough attention to the deductible or actual cash value roof provisions in their policy. Additionally, the companies that have adjusted their policies have not communicated this change appropriately. We strongly recommend that you contact your insurance agent or company and ask about your deductible and roof replacement. Most insureds will not find this out until they are filing a claim and would now be responsible for a large deductible or reduced coverage.
Orcutt Insurance Group is an independent insurance agency serving Colorado and Denver since 2004. Please contact us to discuss homeowners or business insurance.
Thank you for your consideration.
The Orcutt Group Team