Paying for Denver homeowners insurance isn’t always cheap. However, if you try buying a home without one, it’s not easy to get a mortgage. Fortunately, homeowners insurance policies provide essential protection for homeowners.
Most Lenders Require Policy Coverage
During underwriting, you’ll have to send proof of coverage to the insurance company. Otherwise, they’ll refuse to issue the mortgage to you. Most of them require enough coverage to pay for the home’s market value, too.
Denver Homeowners Have Several Insurance Options
While comparing options, there are 3 broad categories of coverage. Actual cash value covers the cost of your home and belongings. If you’ve filed a claim, depreciation is taken away from the total before issuing a payment.
Replacement cost coverage pays for everything in the home to be replaced. So, you won’t have to worry about depreciation taking away some of the money.
Some insurers also offer extended coverage that covers up to 125% of the home’s assessed value. So, it’s more than what you’ve paid for the place, typically.
What Is and Isn’t Covered by Your Policy
Most damage to your home will qualify under the policy’s guidelines. Also, if anyone steals something, that falls under its guidelines, usually.
However, certain things won’t trigger a policy payout unless you’ve purchased additional coverage. For example, when there’s a flood, you must have a flood policy. Regular homeowner’s insurance wouldn’t cover any damage caused by one of them. Longevity Insurance Brokers provides brokerage service for Denver homeowners insurance. Visit us to learn more.