Summer Insurance Risks in Colorado: What You Need to Know
First of all, if you know me personally, you know that I am not the most risk adverse person. I have played more than a few hands of poker, eaten my fair share of very questionable foods, and maybe picked a fight or two that I clearly would not win. I have yet to determine if this has changed since I have become an agent or not however I do know that part of my job is to educate others on risk mitigation. Especially, since I have had first hand experience with many of these events and because summer brings the highest rates of property and liability claims for Coloradans.
🏠 Home Hazards in the Centennial State
Colorado summers are notorious for unpredictable and often intense weather patterns. Homeowners should be prepared for:
Hailstorms: My dad is also an insurance agent and in his office use to hang a picture of a hailstone the size of a baseball with the caption, “the million dollar stone” and this was back in the 80’s! Colorado consistently ranks among the top states for hail damage, especially along the Front Range which is locally nicknamed the “hail belt”. Insurance check -Replacement vs ACV or Payment Schedule and Deductible. Comprehensive for your auto.
High Winds and Tornadoes: While not as frequent as in Tornado Alley, Colorado still experiences its fair share of powerful windstorms and tornadoes, especially on the eastern plains. A few weekends ago we were super disappointed when my daughter’s soccer tournament was canceled because of a visible tornado east of Denver! And we will never forget the tornado that ripped through Windsor in 2013. There was so much structural damage, fallen trees, and flying debris.
Lightning Strikes: Colorado is home to 58 14ners which Coloradan’s know as mountains that are over 14,000 feet. I have climbed a couple myself…see, not so risk adverse! The high elevation does increase the risk of lightning damage. Power surges can destroy electronics, and direct strikes may spark house fires or wipe out electrical, security systems, refrigerators, and computers.
Flooding: Flash floods are a serious risk in areas near canyons, creeks, and burn scars from previous wildfires which we have no shortage of. Standard homeowners policies typically don’t cover flooding—consider supplemental flood insurance if you’re in a high risk flood area.
Wildfires and Smoke: Cameron Peak, East Troublesome, and Pine Gutch were the 3 largest fires to date in Colorado and all of them were in 2020. This topic is near and dear to my heart because my husband helped fight the Cameron Peak fire. It was tough to see all the people who lost homes and businesses. Even if flames don’t reach your home, smoke damage and air quality issues can still affect your property and health.
Accidental Fires from BBQs and Fire Pits: Dry conditions lead to the dreaded but necessary fire bans. Be sure to follow local fire restrictions, make sure to never leave an open flame unattended, and always have a fire extinguisher on hand at backyard BBQ’s.
Burglaries During Vacation Season: Summertime travel leaves homes vacant for extended periods. Install security systems, use smart lighting, and alert neighbors before heading out of town. Insurance check - scheduled personal property (jewelry, furs, art, coin collections, high value cameras and computers, etc.).
⚠️ Backyard Liability: Trampolines & Pools
Liability is often called litigation insurance and is what you pay the “other person”. 2 things cause some of the most liability claims on home policies.
Trampolines: My kids have asked a hundred times and I have still yet to say yes…this summer activity happens to be one of the leading causes of backyard injuries, especially for kids. Many insurers require safety nets or fencing, and some may exclude trampoline-related injuries entirely.
Pools: Owners are legally responsible for maintaining proper safety measures, such as fences and pool covers. Drowning and slip-and-fall injuries can result in large liability claims.
*If you have either of these I highly recommend an umbrella policy.
🛻 Summer Toys
Colorado’s outdoor lifestyle often includes motorcycles, boats, and RVs—all of which come with unique summer risks:
Motorcycles: With scenic roads like the Million Dollar Highway and Trail Ridge Road drawing riders from across the country, motorcycle accidents tend to rise in the summer. Consider investing in safety gear such as helmets and armored jackets. Insurance check -medical, property damage, and uninsured motorist.
Boats/Watercraft: Popular spots like Horsetooth Reservoir and Dillon Lake see a spike in boating traffic. Accidents involving watercraft can result in injury, property damage, or liability claims—specialized boat insurance is recommended.
RVs: Whether you’re heading to Great Sand Dunes or camping in Estes Park, RVs are susceptible to collisions, theft, and weather damage. A dedicated RV policy will offer broader protection than standard auto insurance. If you’re taking extended trips in your RV, consider increasing your personal property limits.
Many of my clients call to add their summer toys or check on their roof coverage during the summer months. Please, reach out if you have any questions regarding your policy. I am always happy to have a conversation about insurance!
Navigating the Challenges of a Hard Insurance Market: What Consumers Should Know
Understanding the insurance market can sometimes feel like solving a complex puzzle with numerous moving pieces. Recently, this landscape has shifted gears, entering what experts refer to as a "hard market." This shift holds significant implications for individuals seeking various insurance types such as home, auto, and umbrella policies. Let's delve deeper into what this transformation means for you and how it impacts your insurance journey.
A hard market is like a time when sellers (in this case, insurance companies) have more control. This means customers might face higher premiums, stricter rules for getting insurance, limited coverage options, and fewer companies competing for their business. Some businesses might even receive notices saying their insurance might not be renewed. Additionally, some insurers may decide to stop offering specific types of coverage because it's no longer profitable for them.
Several key factors have contributed to this shift:
Catastrophic Losses: Natural disasters like floods, hurricanes, and wildfires have caused massive damages. Insurance companies have had to pay out significant sums, leading to higher costs for coverage, especially for commercial property policies.
Financial Considerations: Insurance companies need to balance their books. If they pay out more in claims and expenses than they collect in premiums, it's bad for their business. Low-interest rates also mean they can't rely on investments to cover their losses.
Economic Fluctuations: When the economy takes a hit, businesses might cut back on insurance. This means less money for insurance companies coming from premiums.
Inflation Impact: Rising costs over time, like medical care or construction, force insurance companies to pay more for claims. This makes it challenging for them to keep insurance prices stable for customers.
Reinsurance Costs: Insurance companies buy reinsurance to protect themselves from huge losses. But when the companies providing that reinsurance face the same issues, it affects regular insurance prices.
For consumers, these changes are noticeable. Insurance costs have increased, making it harder to switch companies or get coverage, especially after accidents or past claims.
However, there's a silver lining amidst these challenges. Insurance brokers can be your guiding light in this complex market. As insurance professionals, we are well-versed in the ins and outs of different insurance companies. We work on your behalf, searching through multiple options to find coverage that fits your budget and needs, even in this challenging market environment.
Understanding the shifts within the insurance industry is key to making informed decisions. Even during a hard market phase, collaborating with an experienced broker can help you navigate the complexities and secure the best insurance coverage for your specific circumstances. With our expertise, you can make smarter choices that align with your financial constraints while ensuring adequate protection.
Why You Should Choose an Insurance Broker: Your Guide to Better Coverage and Peace of Mind
How many of you procrastinate when we have an overwhelming or complicated task? For many of us one of these tasks is finding the right insurance coverage at the best price. That's where insurance brokers come in—we do this everyday. We are well versed in the language, the market, the policies, etc… and it does not feel overwhelming to us. In fact, we like it! Here’s why working with an insurance broker beats going solo:
1. Access to Great Rates: Believe it or not, insurance brokers often have access to better rates than what you might find on your own. They’ve built relationships with multiple insurance companies and can shop competitive premiums and find discounts on your behalf. That means more savings in your pocket!
2. Expert Guidance Simplified: Insurance policies can be full of confusing jargon. Brokers are there to break it down for you in plain English. They'll explain your options clearly, help you understand what’s covered (and what’s not), and guide you to make informed choices that suit your needs and budget.
3. Your Advocate, Not the Insurer’s: Unlike insurance agents who work for specific companies, brokers work for you—they're on your team. Their goal is to find the best coverage for your unique situation, without any allegiance to a particular insurer. You can count on them to have your back and prioritize your interests. And if one company is no longer a good fit, they’re able to help you move to another company with ease.
4. Comprehensive Protection Tailored for You: Brokers take a personalized approach to insurance. They’ll assess your risks, recommend the right coverage limits, and suggest additional policies you might not have considered. Whether it’s adding a protection for a short-term renter or home business - they'll tailor a plan that fits like Cinderella’s glass slipper.
5. No Extra Cost to You: Here’s the best part—using an insurance broker won’t cost you extra. They're compensated by the insurance companies they partner with, so you get all their expertise and advice at no additional charge. It’s a win-win!
Partnering with an insurance broker means more than just finding coverage—it’s about gaining a trusted advisor who’s there to simplify the process and protect what matters most to you. Whether you’re insuring your home, car, or business in Colorado, a broker can make insurance less daunting and more rewarding. So, let us handle the heavy lifting while you enjoy some peace of mind.