Time to Review Your "Second" Home Owner's Policy

What do you remember about your Homeowner’s Insurance Policy for your Second Home here in the Crested Butte area?  Have you evaluated it recently?  If not, it is a good idea to review it every year to ensure that your coverage is as expected.  Obviously, the best time to review your policy is prior to a crisis situation.  So take some time out of your busy schedule and spend a few minutes today going over the details in your insurance policy.  Many are predicting a dry summer and the possibility of Colorado wildfires.  If your home is in an outlying area on 35 wooded acres you may be at higher risk than normal. You  should contact your insurance agent if you have questions or need to make a few adjustments.  He or she should be able to answer your questions.  If you don’t feel comfortable with your agent or question whether or not he or she is providing you with the best policy for your situation, please contact me for a reference.  You may find that a change could save you money both short-term and long-term. Some helpful questions: Ask – Can I qualify for a premium reduction by installing smoke detectors, alarms, new locks or doors, or improved roofing material?  What is really covered by my insurance?  Ask about the phrase “acts of God” and the interpretation of the insurance company. Is your home insured for Replacement Cost, or Actual Cash Value?   Actual cash value covers the price to replace or repair your home, minus depreciation.  Replacement cost covers the price to replace the property with a new materials or goods that are of similar quality.  Most insurance policies include replacement cost coverage, but some sell it as an option.  Since construction costs are far more expensive than most homes are worth in the Crested Butte area- make sure to understand your options on this matter. Discover – What is insured, the actual home or only the land under it?  Is land value part of my policy amount and if so, why?  If in a condo – the HOA has insurance for the building, but what about your furniture, furnishings, artwork? Discuss – Are my valuables and heirlooms in need special coverage?  Would a higher deductible result in a significant reduction in my premium? Should I get  flood damage insurance? If replacing the roof, what roof material will help reduce your premium (ie: standing seam metal roof vs. cedar shake). Are you Renting your Vacation home?  Is your home covered if you Rent it and the Renters cause you to file a claim?  Many Second Homeowners in Crested Butte may have purchased their home thinking they would use it the majority of time – but were later enticed by rental income.  Most do not realize that their current policy may not cover claims caused by renters.  As well there may be additional items required in the home before an insurance policy will be written:  CO2 detectors, Smoke detectors, Water detectors with Main Water Shut-off protection – all tied to a monitored Security system).  Do you also have sufficient liability insurance or an umbrella policy to protect you in the event a renter slips on the ice on your porch…? Asking these questions now and periodically in the future will give you peace of mind and give you the knowledge you will need should you ever encounter a crisis with your home.