What You Need to Know About Home Insurance in Lakewood, Colorado

Lakewood homeowners pay about $2,864 in home insurance annually, which is significantly higher than the national average of $1,899. In recent years, home insurance rates in Lakewood have been on the rise and are expected to continue to increase in the coming years.

One of the main reasons why home insurance rates have been increasing is because of the increased risk of natural disasters. The Rocky Mountain region is prone to wildfires, and Colorado has experienced several large wildfires in recent years. Lakewood is also located in a high-risk area for earthquakes.



Another factor that has contributed to the rising cost of home insurance in Lakewood is the increasing cost of rebuilding homes. The cost of construction materials and labor have both gone up in recent years, and this has made it more expensive to rebuild homes that have been damaged or destroyed.

What Does a Lakewood Home Insurance Policy Cover?

A home insurance policy in Lakewood, Colorado, typically covers the following:

The dwelling: This includes the physical structure of your home, such as the walls, floors, and roof. It also covers any attached structures, such as a garage or deck.

Your personal belongings: This includes all of the possessions that you keep in your home, such as furniture, electronics, and clothing.



Liability: This provides protection if you are sued for someone else's injuries or damage to your property.

Medical payments: This covers the medical expenses of anyone who is injured on your property.

Additional living expenses: This pays for your temporary living expenses if your home is uninhabitable due to a covered event.

What Does Basic Home Insurance in Lakewood Not Cover?

There are some things that a basic home insurance policy in Lakewood will not cover, such as:

Flooding: Flooding is not covered by most home insurance policies. If you want flood insurance, you will need to purchase a separate policy.

Earthquakes: Earthquake damage is also not covered by most home insurance policies. If you live in an earthquake-prone area, consider purchasing earthquake insurance.

Wind damage: Wind damage is typically only covered if a hurricane or severe thunderstorm causes it.

Sewer and drain backup: Home insurance policies do not typically cover sewer and drain backup. You will need to purchase a separate policy if you want this coverage.

Mold: Mold is not typically covered by home insurance policies. Some policies will provide limited coverage for mold damage resulting from a covered event, such as a pipe burst.

What Affects the Cost of Home Insurance in Lakewood?

There are several factors that affect the cost of home insurance in Lakewood, Colorado:

The value of your home: The amount you pay for home insurance is based on the value of your home. The more your home is worth, the more you will pay for insurance.

The age of your home: Older homes are typically more expensive to insure than newer ones because they are more likely to need repairs or replacements after a covered event.

The type of home you have: A brick home will be more expensive to insure than a wood-frame home.

Your home's location: The location of your home also affects the cost of your insurance. Homes located in high-risk areas for natural disasters or crime will be more expensive to insure than those in low-risk areas.

Your home's insurance history: Your home insurance rates will be higher if you have a history of filing claims or if a covered event in the past has damaged your home.

The amount of coverage you need: The more coverage you need, the more you will pay for insurance.

Your credit score: Your credit score is one of the most important factors that insurers use to determine your home insurance rates.

How Much Home Insurance Should You Buy in Lakewood? 

The amount of coverage you need will depend on several factors, such as the value of your home and your personal belongings, the age and type of home you have, and your home's location. You should also consider how much coverage you need for liability and medical payments.

A good rule of thumb is to purchase enough coverage to rebuild your home and replace your personal belongings if they are damaged or destroyed in a covered event. You should also consider buying additional coverage for liability and medical payments if you have assets that you want to protect.

Tips for Reducing Your Lakewood Home Insurance Rates

There are several ways you can save money on your Lakewood home insurance rates:

Shop around: The best way to save money on your home insurance is to compare rates from multiple insurers. However, make sure you are comparing apples to apples by getting quotes for the same amount of coverage.

Increase your deductible: Raising your deductible is one of the easiest ways to save money on your home insurance. Just make sure you can afford to pay the higher deductible if you have a claim.

Bundle your policies: You can often save money by bundling your home and auto insurance with the same insurer.

Improve your credit score: Your credit score is one of the most important factors that insurers use to determine your rates, so improving your credit score is a great way to save money on your home insurance.

Ask about discounts: Many insurers offer discounts for things like installing a security system or being claim-free for a certain period of time. Ask your insurer about any discounts you may be eligible for.

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