Colorado · Closing does not set Coverage A
A common mistake is insuring the sale price. Coverage A is rebuild cost. Colorado does not set a homeowners dollar minimum, and the 80% replacement-cost condition is a policy rule, not a statute that splits the bill.
Land is in the purchase price and out of the policy. A lender’s minimum protects the loan. Many HO-3 forms pay replacement cost on the dwelling only if you carry about 80% of rebuild cost. Example: rebuild $400,000, 80% is $320,000, you carry $240,000, an $80,000 repair pays ($240,000 / $320,000) times $80,000, which is $60,000 before the deductible. Forms differ. Colorado CRS 10-4-110.8 covers replacement-value estimates, additional living expense, policy copies, contents, inventories, and some wildfire total-loss duties. It is not an 80% coinsurance law.
Rebuild math: Colorado dwelling coverage. The policy: Colorado homeowners. Fire in the wildland: how the peril works and wildfire coverage. What to add: riders. The state hub: Colorado insurance.
