Discover the coverage Colorado homeowners miss—and how to protect your home with the right replacement cost insurance.
Most Homeowners in Loveland Are Underinsured—Here’s How to Fix That
Nearly 60% of homeowners in the U.S. don’t have enough coverage to fully rebuild after a disaster.
It’s not because they’re careless. It’s because most people think their policy already covers everything. Then the fire hits—or the pipe bursts—and suddenly they’re paying tens of thousands out of pocket.
If you’re unsure what your homeowners insurance would actually pay in a worst-case scenario, now’s the time to review it. Especially if you live in Colorado or Wyoming, where rising construction costs and extreme weather make underinsurance a major risk.
When “Full Coverage” Falls Short: A Real Story
One family I worked with thought their homeowners policy had them completely covered. Then a fire destroyed part of their home. What they didn’t realize? Their coverage only paid for 70% of the rebuilding costs—and didn’t include temporary housing or personal items lost in the fire.
They were forced to dip into savings, delay repairs, and scramble to make ends meet.
This isn’t rare. It’s what happens when your policy is based on actual cash value instead of replacement cost—and when important add-ons get overlooked.
3 Things Most People Miss in Their Homeowners Policy
1. Full Replacement Cost vs. Actual Cash Value
If your policy pays out based on actual cash value, depreciation is deducted from your claim. That means your 10-year-old roof or furnace won’t be covered at today’s prices. You’ll be stuck with the shortfall.
What to do: Ask your insurance agent if your policy is based on replacement cost. If not, it’s time to change that.
2. Missing Add-Ons That Can Save You Thousands
Even if your base coverage is solid, here are three low-cost extras most people overlook:
- Water Backup Coverage
Protects you from damage caused by sump pump failure or sewer backup—one of the most common and expensive home claims. - Extended Replacement Cost Coverage
Adds 25%–50% more to your policy limit, covering inflation or unexpected construction spikes. - Service Line Coverage
Covers underground water, gas, and electric lines leading into your house. Without it, you’ll pay out-of-pocket for costly repairs.
3. Personal Property and Liability Limits Are Too Low
Think of everything inside your home—furniture, electronics, clothes. Your policy should cover replacing it all, not just a fraction.
And don’t forget liability coverage. If someone slips and sues, your policy should protect your home and assets—not leave you personally responsible.
Most policies come with $100,000 in liability coverage. Bumping that up to $300,000 or $500,000 often costs just a few dollars more.
Who Needs to Double-Check Their Coverage?
You should review your homeowners insurance if:
- You live in or near Loveland, Fort Collins, Cheyenne, or anywhere in Colorado or Wyoming
- You’ve made home upgrades or renovations
- You haven’t reviewed your policy in the last year
- You’re unsure whether you have replacement cost or actual cash value
If you fall into any of these categories, now is the right time to make changes—not after disaster strikes.
How Summit Insurance Helps You Get the Right Coverage
At Summit Insurance Agency, we specialize in helping homeowners like you:
- Understand the difference between actual cash value and full replacement
- Add overlooked coverages that protect against real-life risks in Colorado and Wyoming
- Ensure your personal property and liability limits match your lifestyle and assets
We don’t push policies. We walk through your current one line by line, fix the gaps, and make sure you’re never left exposed.
You worked hard for your home. We’ll make sure your coverage protects all of it.
Stop Guessing. Get the Protection You Deserve.
No two homes—or families—are the same. That’s why insurance isn’t one-size-fits-all.
Request a quote from Summit Insurance Agency today and we’ll build a personalized policy that gives you real confidence—not just a monthly payment.