Homeowner’s Insurance Rate Hikes are HAMMERING PEOPLE
Many Colorado homeowners are NOT liking the new quotes they’re starting to receive for homeowners insurance.
According to Kyle Semler of Colorado Insurance, many of his clients are seeing increases of 60%-130% for 2024-2025.
** Personally, I (Kevin) just had a policy get dropped on a rental property and the new replacement policy came in at a 70% increase ($1650/yr compared to $972/yr). Oof. **
Many clients are seeing increases of 60%-130% for 2024-2025.
I asked Kyle for some tips he would offer Colorado home buyers and owners, and here is what he said:
“Roofs are a HUGE deal right now because of all the hailstorms we had last summer.
If purchasing a new home make sure the inspector is paying special attention to the roof, any roof with damage will have to be replaced to make the home insurable. And a brand-new roof is a great way to lower the premium. If/when they do replace a roof consider doing a class 4 impact resistant shingle, they’re not too much more in cost and can save them having to pay a big deductible for a roof loss in the future.
Just about every insurance company has gone to a minimum 1% or $5k deductible for wind/hail claims as a direct response to last summers storms.
Insurance rates in CO have skyrocketed for 2024-2025, most of my clients are seeing increases of 60%-130% and that’s with every single company.
Consider a higher deductible to keep your rates lower, I’m a big fan of $5k.
You really shouldn’t be filing a claim for less than $5k. Not only will that cause your rates to increase for the next 5 years due to that claim, but if you have another claim in within the next 3 years you’ll most likely get dropped.
Your insurance policy is really there for the big stuff.”
As a % of the value of the home, Colorado thankfully remains middle of the road. The midwest and south, where homes are generally cheaper in price, experience the cost of insurance being the highest as a % of the home’s value.
The main reasons for these increased costs are increases in property values, cost of claims (it costs the insurance company more to fix stuff when homeowners file claims), and recent costly claims across the country due to fire and hail and flooding.
There’s no easy solution, but by knowing what’s coming, hopefully you can plan wisely regarding the costs to come.
* These costs won’t just hit single-family home owners. They will also “invisibly” show up in increasing HOA dues for condo and townhome owners and increasing rental prices for tenants.
If you have a desire to buy or sell in the coming year, let’s chat.
Life has a way of keeping us all moving, and I’d love to be your real estate agent.
Contact me here to set up your free and confidential consultation.
Kevin
