Colorado · High rebuild cost
A custom house needs a rebuild limit, not a nicer brochure
A Front Range or foothills house with a high rebuild cost often outgrows a standard HO-3 appetite. “High-value” or “private client” is the name some carriers use for a form that will insure that rebuild, schedule jewelry the base policy sublimits, and offer more liability. It is not a dollar threshold in Colorado law, and the sale price is still the wrong number. Coverage A is the cost to rebuild. Land is not insured.
Extended or guaranteed replacement is a form feature, not a courtesy. Extended replacement pays a percentage above Coverage A on a covered total loss. Guaranteed replacement, when a carrier still offers it, pays to rebuild without that cap, on that carrier’s terms. Many forms pay replacement cost on the dwelling only if it is insured near rebuild cost, often about 80 percent. A percentage hail deductible is a percent of Coverage A. On a $900,000 dwelling, 2 percent is $18,000. That is an example, not a quote. Jewelry, art, and similar items often sit under a small sublimit unless they are scheduled. An umbrella pays only after the homeowners liability limit is used up. Carriers commonly want about $300,000 of that liability underneath. That is underwriting, not a statute. Wildfire eligibility can still decline the house. Hail does not care what the kitchen cost.
The Colorado policy: Colorado homeowners. The dwelling number: dwelling coverage. Belongings: personal property. What you add: riders. Above the house: Colorado umbrella. The regulator: Colorado Division of Insurance.
Price the rebuild, schedule what the sublimit will not hold, and then look at liability. Get a quote or ask an agent.
