Are you sure your home is truly protected for the year ahead?
Between rising construction costs, Colorado’s extreme weather, and yearly policy updates from carriers, your homeowners insurance shouldn’t be something you “set and forget.” Whether you’re a first-time buyer or a long-time homeowner, an annual coverage checkup is one of the most important steps you can take to avoid surprises during a claim.
This guide breaks down the essentials every Colorado homeowner should review each year.
Is My Home Covered for Winter Damage?
Colorado winters bring frozen pipes, ice dams, roof collapse from heavy snow, and furnace failures, all of which can lead to costly damage. But coverage depends on how well-prepared your home is before cold weather hits.
In Winter-Proofing Your Home: What Insurance Covers and What It Doesn’t, we explain how carriers differentiate between sudden, accidental damage (typically covered) and preventable issues due to lack of maintenance (often denied).
A few examples:
- Frozen pipe coverage generally applies only if you maintained heat or drained water lines.
- Ice dam damage might be covered but mold, rot, and long-term leakage typically aren’t.
- Furnace or boiler failures caused by wear and tear are excluded, but resulting water damage may be covered.
Why this matters: A new study from the National Association of Home Builders (NAHB) highlights a major driver behind rising home repair expenses: the nationwide skilled labor shortage. According to the report, the shortage contributes to billions of dollars in added construction and carrying costs each year, putting upward pressure on pricing for everything from roofing to structural repairs.¹
What Does My Policy Actually Pay For?
This is one of the biggest areas of confusion for homeowners, especially when it comes to:
- Labor costs
- Replacement Cost Value (RCV)
- Actual Cash Value (ACV)
- Depreciation (a major factor in claim payouts)
In What Homeowners Insurance Really Covers and What Many People Miss, we break down why two homeowners with similar damage may receive very different checks.
RCV vs. ACV (and why it matters):
- RCV pays to rebuild with new materials (minus deductible)
- ACV deducts for depreciation, meaning older roofs, siding, and interior finishes receive smaller payouts
With Colorado’s rising construction labor rates, the gap between RCV and ACV has widened. Media reporting from KUNC noted that construction material costs in Colorado rose 20–40% while total project costs increased 15–25% since 2020 due to supply chain pressures.²
→ That means a roof replacement that once cost $12,000 may now be $18,000+.
This is also why notifying your insurer after a reroof is essential, covered in How Renovations Affect Home Insurance Premiums.
Why Does My Neighbor Pay Less for Homeowners Insurance Than I Do?
One of the most common questions we hear and the truth is, premiums are rarely identical, even for similar homes on the same block.
Rates may differ based on:
- Roof age & material (newer roofs = discounts)
- Claims history (even small claims can affect renewals)
- Household size (more residents = more liability exposure)
- Credit-based insurance scores
- Neighborhood claim patterns (high hail or water damage areas may see elevated rates)
We cover these factors in depth in 7 Ways Colorado Homeowners Can Save on Their Insurance Premiums.
Escrow, Renewals & Life Changes You MUST Report
Your policy evolves as your life evolves. During your annual review, make sure to confirm:
1. Escrow Adjustments
Many homeowners don’t realize their mortgage servicer pays insurance through escrow. So if your premiums rise (often due to weather losses or inflation), your mortgage payment may increase automatically.
2. Renovations or Additions
Finished basements, upgraded kitchens, new roofs, and structural changes can alter your home’s replacement cost.
Read more in How Renovations Affect Home Insurance Premiums.
3. Life Changes
Report major changes like:
- New baby or family member moving in
- Home-based business
- Expensive new valuables (jewelry, art, equipment)
- Solar installations
- Renting part of your home
- Rising Wind & Hail Deductibles
Colorado carriers continue to update minimum deductibles due to severe storm activity. We explain this trend in Understanding the Rising Wind and Hail Deductibles.
Quick Winter-Proofing Checklist
A simple end-of-year routine can prevent some of the most common winter claims:
Outdoor Prep
- Disconnect hoses
- Shut off outdoor water lines
- Clean gutters and downspouts
- Trim overhanging branches
- Inspect roof for loose shingles
Indoor Prep
- Check attic insulation
- Insulate exposed pipes
- Test your furnace and replace filters
- Know how to shut off your water line
- Update your home inventory (photos + receipts)
Need a deeper guide? Browse Tips to Prepare Your Home and Auto in the Fall.
Schedule Your Annual Coverage Review
Policies change, construction costs rise, and your home evolves your insurance should keep up.
At Mitchell Insurance Group, we help Colorado homeowners understand their options, prepare for seasonal risks, and make sure their coverage fits their real-world needs, not just the basics.
Schedule your annual review today.
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