Homeowners insurance is an important part of buying a home in Colorado Springs, especially if you're financing the purchase. Buyers should arrange coverage early, understand what the policy covers, and confirm that the insurance works for the specific property before closing.

The cost and availability of coverage can vary depending on the home's location, age, construction, roof, claims history, coverage limits, and other factors.

Start Shopping for Insurance Early

Don't wait until the last few days before closing to look for homeowners insurance.

Once you have a property under contract, start requesting quotes from insurance providers. Your lender may also need proof of insurance before finalizing the loan.

Why this matters:

Getting started early gives you time to compare coverage, ask questions, and address potential issues before closing.

Understand What the Policy Covers

A standard homeowners insurance policy can include coverage for the dwelling, personal property, liability, and additional living expenses, depending on the policy.

However, coverage varies between policies. Read the policy carefully and ask the insurance professional to explain exclusions, deductibles, and coverage limits.

What to do:

Don't choose a policy based solely on the lowest premium. Make sure you understand what you're actually purchasing.

Pay Attention to the Home's Roof

The roof can have a significant impact on homeowners insurance.

Ask the seller about the roof's age and maintenance history. Your insurance provider may also request information about its condition, materials, or replacement history.

Why this matters:

An older or damaged roof can affect premiums, coverage, or whether an insurer is willing to provide a policy.

Consider Colorado Springs Weather Risks

Colorado Springs homeowners may encounter weather-related risks such as hail, wind, heavy snow, and freezing temperatures.

Ask your insurance provider what types of weather-related damage are covered and what exclusions or deductibles may apply.

Don't assume every type of damage is covered simply because you have homeowners insurance.

Check Coverage Limits and Deductibles

Your policy should provide appropriate coverage for the home and your belongings, but higher coverage limits can affect your premium.

Also pay close attention to deductibles, including whether certain types of claims have different deductibles.

Why this matters:

A lower premium isn't necessarily better if the policy leaves you with coverage gaps or a deductible you aren't prepared to pay.

Tell Your Insurer About Important Property Features

Make sure your insurance provider knows about features that could affect coverage or premiums.

These may include:

• Finished basements

• Detached garages or outbuildings

• Pools

• Solar panels

• Fireplaces or wood-burning stoves

• Significant renovations

Your insurer can explain whether these features require additional coverage or documentation.

Understand the Difference Between Insurance and a Home Warranty

Homeowners insurance and home warranties serve different purposes.

Insurance generally addresses covered risks and losses, while a home warranty may provide service coverage for certain appliances or home systems under the terms of a separate contract.

Neither should be assumed to cover every repair or problem with the property.

Confirm Coverage Before Closing

Before closing, make sure your insurance policy is active or scheduled to become effective on the appropriate date.

If you're financing the home, your lender will typically require evidence of insurance before closing.

Also confirm that the policy information provided to your lender matches the property and loan requirements.

Common Mistakes Buyers Make

• Waiting until the last minute to shop for insurance

• Choosing coverage based only on price

• Not reviewing exclusions and deductibles

• Assuming every weather-related loss is covered

• Forgetting to disclose significant property features

• Not confirming coverage before closing

Frequently Asked Questions

Do I need homeowners insurance before closing?

If you're financing the purchase, your lender will generally require homeowners insurance as a condition of the mortgage. Confirm the specific requirements with your lender.

How much does homeowners insurance cost in Colorado Springs?

There isn't one standard price. Premiums can vary based on the home's characteristics, location, coverage limits, deductible, claims history, and other factors.

When should I get homeowners insurance?

It's best to start shopping for coverage soon after going under contract so there is enough time to obtain quotes and satisfy lender requirements before closing.

Does homeowners insurance cover hail damage?

Coverage depends on the specific policy, including exclusions and deductibles. Ask your insurance provider exactly how hail and other weather-related damage are handled.

Can an older roof affect homeowners insurance?

Yes. The age, condition, materials, and replacement history of a roof can affect insurance availability, coverage, and premiums.

Key Takeaways

• Start shopping for homeowners insurance early in the transaction.

• Compare coverage, deductibles, exclusions, and premiums.

• Ask how Colorado weather-related risks are handled.

• Understand how the home's roof and other features may affect coverage.

• Make sure your lender receives the required insurance documentation.

• Confirm that coverage is active by the appropriate closing date.

Ready to Buy a Home in Colorado Springs?

Homeowners insurance is an important part of preparing for closing. Understanding your coverage and getting the policy arranged early can help prevent last-minute surprises.

Nora Pajian, a Colorado Springs real estate agent with Engel & Völkers, can help you stay organized throughout the buying process and coordinate with your lender and other professionals as you prepare for closing.

👉 Reach out today to start your Colorado Springs home search.