Why is Homeowners Insurance Rate So Expensive

Hey guys, Jason here with 303 Insurance Brokers. I hope you’re doing well today. I know I am. It’s another beautifully sunny day here in Colorado. Love that 360 of sunshine we get every year. I wanted to share with you another insurance tip. This video will be part two of the insurance tips on why our Auto Insurance and Homeowners Insurance rates are so high in Colorado. In the first video, we talked about auto insurance.

Why Auto Insurance and Homeowners Insurance Rate So High in Colorado

Car Insurance is driven by more people living in Denver. More accidents, more cars, more distracted drivers with cell phones, marijuana laws, all of those things impacting it, and health insurance bills. For anybody that’s injured in a car accident that insurance companies have to pay for and, another one is the hail storm that we’ve seen destroy homes is the same thing. Hail has driven up the price of homeowners insurance. I have discussed 3 Crucial Home Insurance endorsement you should have in my previous videos. Check it out for more in-depth information about adequate protection for your home.

What are the things that drive Home Insurance Rate?

Suppose you think about the average insurance rate for my clients. Somewhere between 1200 and maybe $3,000 a year. Depending on the size of the house finishes and all those things like the roof. The inexpensive roof will be 10,000 all the way up to $30,000 for a hail claim.

•  Hail Storm
  

If you think about those numbers, the insurance is naturally going to have to increase every time there’s a 10, 20, $30,000 hail claim out there. So that’s the big driver to Homeowners Insurance Rate. Ultimately, even if you don’t have a hail claim, but all your neighbors do and have the same insurance carriers, they’re going to have to raise the rates across the board, across zip codes across geographic areas, across the entire state.

• Wildfires
  

The other big thing that we see in Colorado is not just the hail storm but also the double whammy, the fires. If we think about the houses that were lost last summer during the 3 largest wildfires we had here in Colorado, the insurance burden will ultimately be shared amongst the entire state area.

So I’d love to review your insurance policies. There are great ways to see if we’re getting you the best price, best coverages. We can look at what higher deductibles do you want to take a very holistic approach to it. Please feel free to reach out to me with Jason with 303 Insurance Brokers. We’ll do a great insurance review for you. Have a great day. Thanks.