Types of Colorado Liability Insurance

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Colorado insurance companies offer general liability insurance and many types of custom liability insurance policies. Liability coverage is available to cover buildings, property, vehicles and people. Most people are aware of general liability insurance. This can be a combination of coverage to protect against lawsuits for bodily injury, personal injury and damage to property. Businesses need to have general liability insurance and some opt for additional specific liability policies.

There are some areas of business that require specific coverage. For example, a contractor needs to have special coverage that protects their business against claims for mistakes or poor workmanship, and they need to be sure that any subcontractors they hire also have liability coverage. Here are a few types of Colorado liability insurance options for businesses:

  1. Contractor General Liability
  2. Construction Liability
  3. Environmental Liability
  4. Errors and Omissions
  5. Pollution Liability
  6. Employment Practices Liability
  7. Directors and Officers
  8. Excess Liability
  9. Garage Keepers
  10. Medical Professional Liability
  11. Nursing

General liability policies can be written to include aspects of liability that are specific to a particular business. For example, there is liquor liability for bars and restaurants, inland marine transport liability for those in the inland waterway transportation business, and there is pollution liability for industries like mining and drilling. Most of these policies apply to a business or commercial situation.

For individuals, ask the local insurance agent about general liability when discussing policies for home, vehicles and property. Liability is for everyone and all businesses. If someone becomes injured, killed or property damage is due to some negligence or problem at a home, business or other property location, the liability insurance can be a blessing to help protect against personal financial ruin or bankruptcy following lawsuits.

Every state has different insurance regulations; for Colorado interests, please contact your local Colorado insurance agent for detailed information and advice. They are in the best position to made recommendations based upon the latest governmental regulations and requirements.

Colorado Homeowners Insurance Made Easy

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Buying Colorado homeowners insurance is not required by the state but almost always is required by the lender who holds the mortgage on your home. Even if you do not have a mortgage and own your home free and clear, it might be a wise idea to purchase Colorado homeowners insurance to protect what is probably your most valuable single asset.

The Declarations Page

Every homeowners policy has what is called a Declarations page, which details all of the things that are protected under the policy and the maximum amount the insurance company will pay for a covered loss.

Property Coverage

This coverage provides protection against different perils. A typical homeowners policy will cover you against, fire, wind damage, hail storms, vandalism and theft.

Liability Coverage

This coverage protects you if someone should happen to get injured while on your property. It will pay medical bills and also help with any legal costs you might incur as a result of the incident for which a claim was filed.

Exclusions

This is a list of specific perils that are not covered under your Colorado homeowners policy. Some typical exclusions include perils that are usually excluded like floods, earthquakes and landslides. You also may need to buy a rider to cover particularly expensive items like fine jewelry, rare coins and valuable artwork. Most homeowners insurance policies will offer you the opportunity to buy additional coverage to protect you from non-covered perils with the exception of floods. You can buy flood insurance through the Federal Government’s Flood Insurance program.

Types of Coverage

Colorado homeowners insurance coverage has eight basic types of policies, numbered HO-1 through HO-8:

HO-1 – Covers valuable, specific items like jewelry, rare coins or art

HO-2 – Covers a specific part of the house against damage like the roof

HO-3 – Most common, covers the house, contents of the house and injury to persons in the house or on the property

HO-4 – Protects renters

HO-5 – Similar to an HO-3 policy except more comprehensive and more expensive

HO-6 – Covers condominium owners for things not covered under the HOA policy

HO-7 – Covers certain losses for a mobile home owner

HO-8 – Special coverage for older homes that tend to need more repairs than new homes

Don’t Forget the Broker

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As we discuss the ins and outs of home insurance and auto insurance, it can be easy to lose sight of the critical role that an insurance broker plays in the process. Your insurance broker or agent will represent you to several different home and auto insurance companies so that you can get the right coverage at the right price. What are the advantages of hiring a quality insurance broker or agent? Read on to find the answer.

First, an insurance broker will help explain the different kinds of insurance available to you. Understanding the legal contracts and other documents provided by an insurer to its customers is not always a simple matter, for the legal language and unfamiliar terms can confuse us about the precise kind of insurance coverage that we have purchased. Licensed insurance brokers, however, are experts in the reading and analysis of these documents, and they can explain in easy-to-understand language the ins and outs of your insurance policy.

The second advantage of hiring a licensed insurance broker is the potential savings that you can enjoy on your home or car insurance. Today it is easy to buy directly from insurance companies, but if you only consult one company, you do not know if you are getting the very best deal on your insurance. Insurance brokers will contact several companies to get competing bids on insurance for you, and they know which insurance companies tend to offer the best coverage at the lowest rates.

It may be that your insurance broker will receive a small commission for these services, but it is well worth it to you in light of the greater savings you can receive on insurance. So the next time you are shopping for car or home insurance, do not forget the licensed insurance broker.

Getting the Right Colorado Insurance Coverage for Your Home

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Every state has its own insurance regulations; getting the right Colorado insurance coverage for your home should being with a little background research. Colorado law does not require homeowners insurance, but mortgage lenders do. Homeowners, condominium owners, renters and those who own mobile homes should have home insurance. The first step to take is to know what coverage should be purchased for your situation. Do some browsing on the Internet for comparative rates with the following areas in mind:

  • Protection for the Dwelling
  • General Liability
  • Personal Property Protection
  • Deductible Amount
  • Discounts
  • Medical Coverage
  • Temporary Living Expenses

One of the best ways to keep insurance rates lower is to have a higher deductible. If you have damage, yes, you will pay more, but in the long run there should be considerable savings. Another way to save is to upgrade an older home with newer, safer materials. This is applicable to homes more than 10 years old. Do repairs and renovate outdated systems around the property. Remove any hazards and clear brush up to 30 feet away from the building. If there is a swimming pool, hot tub, trampoline or other potentially hazardous areas on the property, make it safer by installing fencing and locks.

Have the home professionally inspected. Include checks of electrical wiring, appliances, heating and cooling units. Wood burners will add to insurance premiums due to higher risk of fire. Make an inventory of personal property on paper and with photos or videotape. Certain items, like jewelry, electronics, antiques or art may need special insurance. Colorado is known for severe storms with damaging lightning, hail and wind. A separate policy can be written for wildfires and floods. It is recommended to insure for replacement cost rather than actual cash value. Replacement policies do not reduce payments for depreciation; actual cash value does use depreciation calculations.

How to Understand Colorado Insurance

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Insurance is not an easy subject to understand, but if you live in Colorado, you need certain minimums of coverage for auto insurance in order to be compliant with the law. Homeowners insurance doesn’t have the same required minimums, but it’s still a good idea to have it.

Minimums for auto insurance

If you own a car and you live in Colorado, you have to have at least liability insurance in the amount of $25,000 per person or $50,000 per accident for bodily injury coverage, and $15,000 minimum in property damage coverage in order to be compliant with the law. This protects you in the event you’re in an accident and are deemed at fault. Your insurance company will cover you for damages up to those amounts. Insurance experts recommend that you carry $100,000 per person or $300,000 per accident for bodily injury coverage if you can afford it, to further protect yourself.

Optional extras in regard to auto insurance

In addition to the above-mentioned liability insurance minimums, there are also two other types of auto insurance, comprehensive and collision insurance. If your car is newer than 10 years old, it’s a good idea to carry these types of coverage; they’re optional, in that you don’t have to have them by law, but if your car is damaged in an accident and you deemed at fault, collision insurance will cover you for repair or replacement of your car up to its current market value. Comprehensive insurance covers you in the event your car is damaged by a non-accident event like hail or vandalism.

Homeowners insurance

You’re not required by law to carry homeowners insurance in Colorado, but if your home is financed, your lender may require it of you as a condition of offering you a mortgage. As with auto insurance, homeowners insurance protects your property against disaster like fire, hail, wind damage, theft, or vandalism. Liability insurance is carried as part of your homeowners’ insurance policy and protects you in the event someone is injured on your property and sues you for damages.

Colorado Homeowners Insurance Requirements

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The state of Colorado does not require that, as a homeowner, you carry homeowners insurance. While this may be true, most mortgage companies will require that you carry homeowners insurance on your home at least for the duration of your mortgage. With that being said, the actual requirements of how much homeowners insurance you will need to carry will vary from one lender to the next, so it is recommended that you speak to your lender prior to purchasing homeowners insurance in Colorado.

Aside from lender’s requiring your home have insurance, you may want to have insurance on your own just because. These types of policies are generally known as an actual cash value policy. Market conditions will not cause this type of policy premium to fluctuate since the premium that you will pay will be based on how much you purchase your home for (minus the value of the land it is built on) so they are generally cheaper policies. The problem with this is that if you were to lose your home, you may not get a large enough settlement to get a similar home.

There is also a policy known as replacement value. These are obviously more expensive than the actual cash value since these policies will pay for the total replacement of a home regardless of what was paid for it initially and regardless of how much the home’s value has depreciated since initial purchase. The settlement you receive to replace your home will be the value of the home at the time of loss rather than at the time of purchase. This is a much better policy in the long run.

Why Shop for Insurance Before Leasing or Financing?

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Leasing a car carries with it an additional cost that many people don’t think about before signing. Virtually all lease contracts require that you carry ample insurance on the vehicle. In addition to liability insurance, they require collision and comprehensive coverage that insures the company financing the vehicle as well as the lessee. Whether leasing or financing, the same principles apply.

For optimal security, it is a good idea to include gap insurance in your lease policy. If you car is totaled before the end of the lease term, you are still responsible to make all of the required payments and are responsible for the value of the car. Gap insurance covers you for the remaining lease payments and for the difference between the vehicle value and the balance of what is owed the lease.

One of the more important reasons to shop for insurance before committing to a lease agreement is that lease insurance is not cheap. You want to be sure that you not only have sufficient coverage but that you are not paying more than you have to for it. Rates are variable, so review your policy annually.

Auto lease insurance is like other insurance policies in many ways. You get to choose the options that address your specific needs, purchasing no more and no less than is necessary. All providers offer essentially the same options but not for the same premium costs. Some providers are more user friendly than others, while some have better financial ratings.

You want to be secure knowing that the provider you select has a proven record of paying claims in full and on time. If not, you could wind up being responsible for a large financial loss.

If you do a bit of online research, you will have no trouble finding a reputable company that can offer you the protection you need for the best price.

Colorado Insurance Options

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If you live in Colorado and you own a car, you must carry auto insurance amounts that meet certain minimums. There are other options for additional auto insurance that may be beneficial to you, depending on the age or condition of your car. Let’s take a look at them.

Liability Insurance

In Colorado, you must carry liability insurance in the amount of $25,000 per person, or $50,000 per accident, for bodily injury coverage, and at least $15,000 in property damage coverage. If you can afford it, it’s recommended that you carry bodily injury coverage in the amount of $100,000 per person or $300,000 per accident, to further protect yourself.

Uninsured/Underinsured Motorists’ Coverage

Uninsured or underinsured motorists’ coverage is something that’s not understood by a lot of people. In Colorado, this insurance must be offered to you as a policyholder in the same amounts you choose for liability insurance coverage (for example, $25,000 per person, or $50,000 per accident, in bodily injury coverage). You can choose to reject it if you wish, but it’s a good idea to carry it.

With underinsured or uninsured motorists’ coverage, bodily injury costs for yourself and your passengers are covered in the event the other motorist doesn’t have enough insurance to cover you (or isn’t insured at all), and is at fault for the accident.

Medical Payments Coverage

Your insurance company is also required to offer you $5,000 in medical payments coverage in the event you’re in an accident; you can reject it if you so choose. The extra premiums for this insurance are simply added into your current premium.

Other Colorado Auto Insurance Options

In Colorado, you can also choose to buy collision and/or comprehensive insurance for your car, although these are not mandatory. Collision insurance covers you for car repairs or replacement in the event you’re in an accident and are deemed at fault. Comprehensive insurance covers you for repair or replacement in the event your car is damaged by a non-accident event, like a falling tree branch or vandalism, or if it is stolen.

Comparing Colorado Insurance Quotes Online

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It pays to compare Colorado Insurance quotes online. Whether you are looking to buy Colorado homeowners insurance or Colorado auto insurance or both, you can benefit by shopping around for the best price and the best deal to meet your insurance needs.

Tips for Comparing Colorado Insurance Quotes Online

The following tips are fairly generic in nature and can applied to both homeowners and auto insurance. Depending on the type of insurance you are buying, you can tailor some of your questions to that specific type of insurance. For example, you would not request a special rider to cover your expensive collection of fine art if you were buying car insurance and you would not request collision coverage if you were buying homeowners insurance.

1. Determine the type and amount of insurance you want or need.

2. Shop around and get quotes from at least three or four insurers.

3. Ask for the exact same coverage with each insurer that gives you a rate quote.

4. Ask if there are any discounts that you may be eligible to receive.

5. Look for the company that provides the best claims service.

Give Yourself Plenty of Time to Compare Policies

It can take hours and sometimes even days to contact a sufficient number of insurance companies, provide them with the pertinent information they need to give you an accurate quote and then hear back from them with the quote. Do not lose patience waiting for all the quotes you requested and simply go with the first quote because it is most convenient. Having a little patience can pay off with a much lower premium and a better overall deal on insurance.

Do Not Commit Too Soon

Similar to the above warning, give yourself enough time to evaluate each quote. Sometimes what appears to be the best deal is really not. If you do not understand all the terms of the quote, ask for clarification. No one is holding a gun to your head and if you feel pressured by one insurance company, that is a perfect reason to drop them from consideration.

What Materials Should I Have Ready for a Meeting with Agent

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Do you know what materials you need to bring to the insurance agency when you are meeting with your agent? Well, that kind of depends on the type of insurance you want to buy. There are certain things you should bring for any type of insurance and certain things that are specific for individual lines of insurance.

Basic Information

When you get to the insurance agency and are invited to sit down in the chair on the other side of the desk from the agent, you should come prepared with identification. You will very likely be asked to present your driver’s license and also furnish your Social Security number. Some additional identification papers, such as a military discharge, birth certificate or passport, may also be handy to have if you do not happen to have a valid driver’s license or car but still need some other type of insurance.

Specific Information

  • Homeowners Insurance - You must furnish your physical street address to the broker when purchasing insurance to cover your home. You must also answer some questions, such as whether or not you are occupying the home or it is an income-producing property or vacation home. The agent may need some form of confirmation, such as a utility bill or copy of your mortgage papers, to submit to the underwriters of your policy.
  • Automobile Insurance - In addition to the basic information, you may be asked to provide information about the car that you want to insure. You will probably need to bring your registration, which will show the vehicle identification number (VIN) as well as the year, make and model of the vehicle.
  • Health Insurance - Bring any documentation that will show any medical conditions you may have. It is very important to be as truthful as possible when buying this type of insurance because if you lie about a pre-existing condition and it later shows up that you were diagnosed before the policy was issued, any claim you may make in the future may be denied.
  • Life Insurance – Again, be truthful and provide accurate information when you are asked questions about your age, health and habits. If you are a smoker, don’t try to get a lower premium by saying you do not smoke. Not answering questions truthfully is reason for an insurance company to deny any claims you may have in the future.