INSURANCE

ally at the policy renewal date. Here are some things to look at when reviewing your home insurance: Dwelling coverage—this is the base amount of coverage in the policy to replace your home in the event of a total loss. Most policies have an extended replacement cost provision in the event that the base dwelling coverage is not enough to rebuild the home with the same fit, finish, and quality as before the loss. This additional dwelling coverage amount is typically 20-50% of the base dwelling coverage amount.

Your home should be insured for a minimum of $300 per finished square foot as a baseline amount for what it would cost to rebuild that home in the Foothills area.

Loss of Use coverage—this is coverage for any expense you incur when you are displaced from your home because of a covered loss. The reimbursement for those expenses typically defaults to twelve months from the date of loss. This is not a long enough time period for loss of use coverage. Victims of the Marshall Fire, which happened over twelve months ago, have still not had enough time to rebuild their homes. This coverage should be extended to 24 months, as it will take 18 to 24 months to rebuild your home in the event of a total loss.

Building Ordinance or Law coverage—this is additional coverage to help defray additional building costs that result from county build- ing code and ordinance changes. Boulder County changed building codes to include requirements to use fire resistant materials, ecologically friendly materials, and other code changes that increased construction costs dramatically, driving up the cost to rebuild for Marshall Fire victims. This coverage should be a minimum of 10-25% of the dwelling coverage to compensate for increased building costs of new codes.

Many insurance companies are not accepting new home policies in our area and many companies are non-renewing existing customers because of the perceived wildfire risk in the Foothills. Home policy premiums are rising because of the wildfire danger. That’s why it is wise to review your home policy with your insurance professional. It is better to understand and adjust your coverage now before a catastrophic loss event happens.

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Envision Martial Arts

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