Often referred to as “Colorful Colorado,” the Centennial State is an amazing place to live and deserves most of the hype it gets. There’s a reason it’s the second fastest-growing state in the U.S.—newcomers are rapidly planting roots in Colorado because of its high quality of life, from the gorgeous scenery to the abundant outdoor activities to the thriving craft beer scene.
Many of the people moving to Colorado are young families and millennials who will end up renting a home or apartment, especially in larger cities like Denver, Colorado Springs, and Aurora. Colorado landlords often require renters insurance as a condition of leasing a property and will want to see proof of coverage before you move in.
What is renters insurance? For one thing, it’s part of being a responsible tenant. The landlord’s rental policy only covers the building, not your personal belongings. A renters policy covers your personal property in case of a fire, an accident, theft, and certain natural disasters. That way, if disaster strikes, you can have the peace of mind of knowing you won’t be solely responsible for replacing your belongings. It covers tenants in rented properties just like homeowners insurance covers the property of people who own homes. In fact, renters insurance is structured a lot like home insurance, except that it doesn’t cover the building itself.
So what does renters insurance cover?
Liability coverage covers you in case someone hurts themselves at your home or certain kinds of property damage occur. The personal liability portion of your policy may also pay for legal fees and medical expenses of people who get hurt on your property.
Loss of use pays for additional living expenses that you incur when you suffer a large covered loss that makes your home or apartment temporarily uninhabitable. It will help defray the costs of living somewhere else while your home is being repaired or replaced.
Personal property coverage will pay to replace your belongings, like electronics and appliances, that are damaged by covered losses like fire, smoke, wind, theft, or vandalism.
Read more about renters insurance with Insurify ’s comprehensive guide to renters insurance, also known as an HO-4 policy.
What factors determine the cost of renters insurance in Colorado?
Coverage Level
The type and amount of coverage you choose and how much personal property and liability protection you need will have a major impact on your renters insurance rates.
Deductible
How much money can you afford to pay out of pocket after a covered loss? The higher the deductible, the cheaper your renters insurance quote.
Value of Property
Predictably, higher-value properties will have a higher renters insurance premium. This is because an insurance provider will have to pay out more to repair or replace them than they would for a lower-cost property.
Residence Type
A high-value rental home will cost more to insure than a bare-bones apartment, and your renters insurance coverage will increase in cost accordingly.
Credit Score
People with lower credit scores are statistically more likely to file more claims, so renters insurance companies charge them higher premiums. Raising your credit score can result in discounts.
Owning Pets
Pets may increase your liability risk—for example, if your dog bites someone—so your premiums are likely to go up if you own pets.
Colorado -Specific Factors
Colorado is known for long, cold winters with plenty of snow and ice. This can occasionally lead to burst or frozen pipes that result in water damage to your home or apartment. This will be factored into your premiums.
Insurance agents will also look at the specific location of your rental property—not just the state but the ZIP code, too. That’s because some things that affect your premiums, like theft, are higher in places like Denver than they are in the rest of the state.
