Navigating the ever-changing insurance landscape in the state of Colorado can be tricky, especially when you are looking for cheap homeowners insurance. With so much misinformation floating around, it’s easy to feel lost. But don’t worry—we’re here to bust some of the biggest insurance myths and get you on the right track!

Here are five common homeowners insurance myths you should know about:

1. Myth: You’re locked into your home policy for a year.

Fact: You can change your homeowners insurance at any time!

Think you’re stuck with your policy for a full year? Think again! You have the freedom to switch providers whenever you like. Just be sure to do your research and find a policy that offers the right coverage for your needs before you make the leap.

2. Myth: You can file as many claims as you want without consequences.

Fact: There’s a claims threshold, and exceeding it can cost you.

While insurance is there to help when disaster strikes, filing too many claims—usually more than two within a three-year period—can raise red flags for insurers. This could make you ineligible for lower rates or, worse, lead to your policy being canceled. Be mindful of when it’s truly necessary to file a claim.

3. Myth: Homeowners insurance covers everything.

Fact: It covers a lot—but not everything!

Here’s a quick breakdown of what’s typically covered:

• Dwelling Coverage: Protects the structure of your home against perils like fire, theft, vandalism, and certain natural disasters (excluding floods and earthquakes, which may require separate policies).
• Personal Property: Covers your personal belongings, such as furniture, electronics, and clothing, if they are damaged or stolen.
• Liability Protection: Offers coverage if someone is injured on your property and you are found legally responsible. This can help cover legal fees and medical expenses.
• Additional Living Expenses (ALE): Covers costs for temporary housing and living expenses if your home becomes uninhabitable due to a covered event, such as a fire.
• Other Structures: Protects structures not attached to your home, like sheds, fences, or detached garages, against damage or loss.
• Medical Payments: Provides coverage for medical expenses if someone is injured on your property, regardless of fault.

However, homeowners insurance typically doesn’t cover flooding, earthquakes, or wear-and-tear damage. Be sure to review your policy carefully and add extra coverage as needed!

4. Myth: Filing a claim always leads to higher premiums.

Fact: Not all claims result in a premium hike.

While it’s true that some claims can increase your rates, it doesn’t happen every time. Many insurers offer discounts for going claim-free for a certain period, which could help cushion the blow if you ever need to file. Plus, some insurers may forgive the first claim or have options that minimize rate hikes after certain types of claims. Always check with your provider to understand how claims might affect your premiums.

5. Myth: Plumbing issues are fully covered by homeowners insurance.

Fact: Plumbing coverage depends on the situation.

Homeowners insurance can cover plumbing-related issues, but the extent of that coverage often depends on the specific circumstances and the policy details. Here’s a general overview:

• What’s Typically Covered:
• Sudden and Accidental Damage: If a plumbing issue causes sudden damage—like a burst pipe leading to water damage in your home—this is usually covered. This includes damage to walls, flooring, and personal belongings.
• Water Damage from Plumbing Failures: If a plumbing system fails and causes damage, such as a broken toilet or leaking pipes, homeowners insurance may cover the repairs and any resulting damage.
• Liability Coverage: If someone is injured due to a plumbing issue (like slipping on water from a leak), liability coverage may apply.

• What’s Typically Not Covered:
• Gradual Damage:
• Issues resulting from wear and tear or neglect, like a slow leak that has gone unaddressed, are generally not covered.
• Flooding: Damage from flooding is usually not covered under standard homeowners insurance and typically requires separate flood insurance.
• Maintenance: Routine maintenance and repair costs for plumbing systems (like replacing old pipes) are usually not covered.

• Optional Coverage: Some homeowners opt for additional endorsements or riders, such as:
• Sewer Backup Coverage: This can provide protection against damage caused by sewage backups, which is often excluded in standard policies.

Always check your specific policy and consult with your insurance agent to understand what plumbing-related issues are covered and if you need additional protection!