Front Range Real Estate Market Update, January 9, 2025

Three years ago, Colorado faced devastation wrought by the Marshall Fire. Almost 1,000 structures were destroyed, two lives were lost, and tens of thousands of people were evacuated. Homeowners are still recovering from their losses. Today, we’re watching wildfires wreak havoc in California.

After the Marshall Fire, many homeowners found that they were inadequately insured. We’d like to take this moment to remind you to review your insurance to ensure you can rebuild after a devasting event.

Consider purchasing full replacement insurance; it offers significant benefits and financial security in case of a disaster or damage to your property.

Full replacement coverage ensures that if your home is damaged or destroyed, your insurance will pay to rebuild it, regardless of depreciation or market fluctuations.

Construction costs, materials, and labor prices often rise over time. Full replacement policies account for inflation, which helps ensure you’re not left underinsured when rebuilding. Many full replacement policies also extend coverage to personal belongings, allowing you to replace items with equivalent new ones rather than receiving a depreciated value.

Knowing that your home can be restored to its original state without financial strain provides homeowners with peace of mind, especially in areas prone to natural disasters.

Without full replacement coverage, you could face significant out-of-pocket costs to make up the difference between the policy payout and the actual cost of rebuilding or repairing your home.

Many lenders require sufficient insurance coverage to ensure the property can be restored in case of loss, and full replacement policies typically meet or exceed these requirements.

While full replacement coverage will certainly cost more than most standard policies, the additional investment provides unmatched security and ensures you won’t be caught off guard in the event of significant damage or total loss.