We know it’s no fun shelling out money every month for automobile insurance that you hopefully never have to use, but think of it this way: being insured not only protects you and your vehicle, it also protects the people around you in case an accident happens. And that’s important, especially when you consider that an estimated 1/3 of Colorado drivers are either uninsured or underinsured. We want to change that so our roadways become a safer place for everyone.

An automobile policy is comprised of six different parts of coverage. Most states require you to buy some, but not all, of these coverages. If you’re financing a car, your lender may also have additional requirements. In Colorado, every motor vehicle that is operated on roadways must be covered by liability insurance by a company licensed to do business in Colorado. This includes motorcycles, golf carts and mopeds.

Here are the minimum levels of financial responsibility you need in Colorado:
• $25,000 in bodily-injury liability for one person and $50,000 for two or more people
• $15,000 in property-damage liability

Replacement Cost Coverage vs. Actual Cash Value

When choosing a renters insurance policy, be sure to pay attention to how you will be paid for items that are lost, damaged or stolen. A replacement cost coverage policy will pay you what it costs to replace your item after you make a claim and pay the deductible. An actual cash value policy will pay you what the item is worth after you make a claim and pay the deductible, taking into account any depreciation.

Additional Coverage for Expensive Items

Your insurance policy will pay for you to replace or repair your personal belongings up to a certain amount. So if you have items that are more expensive than the amount your policy will cover, you should look into purchasing an additional type of coverage called an endorsement, or a scheduled personal property floater.

Making Sure You Can Use Your Insurance to Replace Your Belongings

Some people who have renters insurance in Casa Grande make the mistake of not taking inventory of their items and keeping proof of purchase. If you can’t prove to the company that you owned the items that you are claiming to have been stolen or destroyed, they won’t be able to help you replace them.

That’s why it’s so important to keep a detailed list of every item that you want to insure. You will need to take photos of the item, have a recent receipt of purchase or appraisal certificate, and log any model numbers or serial numbers. Make sure to store this information somewhere outside of your home so that it isn’t lost or destroyed if a fire or natural disaster occurs. Many policy holders store this information in the cloud so that it can be easily accessed by them from anywhere.

Examples of Covered Incidents:

• Theft
• Vandalism
• Smoke, if sudden and accidental
• Sudden and accidental discharge of water or steam from plumbing, heating, or air-conditioning system, or household appliance
• Fire or lightning
• Windstorm or hail

What is the difference between “Replacement” and “Actual Cash Value”?

When looking to protect your mobile home it is important to understand the difference between Replacement and Actual Cash Value policies. Replacement value should be your first choice when considering a policy to protect your mobile home. With Replacement value, your manufactured home and personal property will be replaced for what they cost at the time of loss and no greater than your policy limits. This is a huge advantage and is the optimal coverage. Actual Cash Value affords coverage to your home and personal property at market value. Since market value and replacement value can be significantly different, you may have to produce extra cash out of your copy to replace your belongings and home.

For example: Your Park Model Home cost you $40,000 five years ago. It suffered a fire today causing it to be completely destroyed. Your home was insured for $40,000 as well. A Replacement Value Policy would pay the full $40,000 to replace your Park Model while an Actual Cash Value policy would pay the depreciated value of your 5-year-old Park Model, which might only be valued at $25,000. This means that you would have to pay for the remaining $15,000 to replace your Park Model.