Robert Langlois Insurance Agent
7901 Southpark Plaza #110
Littleton, CO 80120
If you have a mortgage on your home, you are required to carry home insurance. If you don't, then the choice is yours if you want to carry it or not. Living in Colorado and the drastic weather that we have, it is a good choice to have home insurance whether or not you have a mortgage. Since Colorado is so prone to hail storms, a homeowner will likely have a roof claim around every 8-11 years with a traditional roof. There are ways to lower your risk in hail storm with impact resisten roofs that you also receives discounts on your insurance. We work with our clients to ensure that their policy is tailored to their own situation to offer the best value for the price. Below are some of the key items included in a home policy.
Dwelling Coverage - On your declaration page, this will be listed as coverage A. This covers the damage done to your home in the event of a storm, fire, or pipe bursting. The amount of coverage determined is typically calculated through a 'replacement cost estimator.' The replacement cost of the home is the amount that it would cost to rebuild the home if the home were a total loss. There may be additional coverage available, referred to as 'extended replacement cost' or guaranteed replacement cost.' These additional coverages increase the replacement cost above if the total loss exceeds the replacement cost estimate.
Personal Property - The best way to describe this coverage, is to imagine if you could pick up your house, turn it upside down and shake everything out of it. The items that fall out would be considered your personal property. This coverage within a home policy is usually a percentage of the dwelling coverage to give a baseline number. It can be adjusted to what you feel is necessary. For certain items of personal property there may be limits (firearms, jewelry, cash, gold, and more). We recommend looking at adding those items on a floater, which is like it's own policy within your home policy.
Liability - The five most commons liability claims for home policies are dog bites, homes accidents (door to door salesman slips and falls, etc.), falling trees, intoxicated guests, and injured domestic workers. If you are found negligent for the injury of someone else, your home policy liability coverage is in force for that reason. Always consult with your agent to verify your liability is sufficient, or ask about an umbrella policy.
Deductible - This is what you pay to have your claim pay for damage to your home. A higher deductible will typically mean a lower annual premium for the home policy. We recommend to carry as high of a deductible as you can afford. By doing this, you may be able to save money in the long term.
RCV vs ACV - RCV (replacement cost value) and ACV (actual cash value) are payout options selected on a home policy. RCV is the cost to replace a damaged item to it's new state. Example: If a roof needs to be replaced, the insurance company will pay the full amount to replace the roof (minus the deductible) regardless of the age of the roof. ACV is referred to as a depreciated value. In the same example, if the roof is to be replaced under an ACV option, the insurance company will pay a depreciated amount based on the roof age, and the client would need to pay the remaining amount plus the deductible. It is always recommended with our agency to carry RCV on both the dwelling and personal property coverage.
Short Term Rental (VRBO, AirBnB, etc.)
If you rent you have a second home, or just decide to rent your home when you are on vacation, the traditional home policy will not cover this. We do offer coverage for this situation under a separate policy as it would be considered a type of investment property.