How Long To Keep Insurance Records in Colorado

Understanding how long to keep your insurance records in Colorado is critical for anyone with a policy. Situations can arise in which you may need proof of insurance and without it, you’ll have quite an ordeal without the right paperwork.

Documentation is important and it’s a good idea to have a record of your insurance policies even if you are no longer with that carrier. You can keep them safely and more easily than ever these days because most of these documents are provided to you online.

Simply keep them wherever you keep other secure, important documents for safekeeping and you’ll be able to access them for years to come.

While there isn’t an exact number of years in which you’ll want to keep your insurance records, here are a few considerations when doing so:

• Are you switching carriers but still awaiting reimbursement for a claim?
• Do you own your home or was it purchased with a mortgage?
• Even if you are not at fault, do you have any legal obligations involving an accident and your vehicle or home?
• Do you deduct insurance premiums from your taxes?
• Have you moved recently or are you planning to do so in the next 5 to 10 years?

 

All of these questions and more will help you determine a better timeline for your specific situation involving recordkeeping. Below, we’re taking a look at different insurance policies and how long you should consider keeping them on file.

 

How Long To Keep Car Insurance Records in Colorado?

Having your car insurance policy on hand will need to be the standard throughout the duration of your coverage. However, if you have a claim that is still outstanding, it’s best that you don’t get rid of your policy even if you change carrier until your claim is settled.

Furthermore, there are legal issues that can arise. For example, if you were at fault for an automobile accident in Denver, until everything is settled, you’ll want to protect yourself by being able to prove you had proof of insurance at the time.

It’s also a good idea to keep your policy for auto insurance in Colorado if you still owe a carrier money. While it’s never ideal to own money on coverage, it’s important to recognize that in the real world, things happen and you need to be prepared.

 

How Long To Keep Expired Homeowners Insurance Policies for Your Records in Colorado?

You generally won’t need to keep your homeowners insurance policy in Colorado longer than a year as it’ll expire. For most homeowners, this means either renewing with their current carrier for another policy or choosing a new carrier and enrolling in their coverage.

But if you have claims that are yet to be settled, you’ll want to be sure that you have proof of your coverage during the time of your claim. Therefore, it’s a good idea to keep your older policies on hand until everything is taken care of, similar to that of an auto insurance policy.

The same is true about home insurance policies in the event you still owe on your coverage. Everyone has different situations and regardless of who you enroll with, it’s easier than ever to keep track of your records online. Maintaining a record can help you stay prepared for the unexpected.

 

Is There Any Reason To Keep Old Insurance Policies in Colorado?

There are several reasons why keeping a digital or physical copy of an old or expired insurance policy may be advantageous. While ultimately, not all of these may apply to you, some likely will or could in the future. Here are key considerations when determining how long you should keep insurance records on hand that go beyond proof of coverage:

• We’ve mentioned claims that are ongoing, but it’s still also a good idea to maintain a policy to help you prove your claims history down the road.
• Mortgage lenders and other institutions may need to see that you’ve maintained coverage. This can also be helpful if you decide to sell or gift your home.
• For anyone, but especially those with small businesses, if you are taking tax deductions using your premiums, it’s important to keep your policies in the event of an audit.
• According to the General Assembly of the State of Colorado, Section 2 of House Bill 94-1281 allows visitors up to two years from the date of an accident to sue homeowners if they are injured on their property. Maintaining proof of coverage can help you avoid liability concerns involving lawsuits.

 

There are various other scenarios that may arise on a more one-by-one scenario, however, the bottom line remains. If you have a realistic means of doing so, simply stash old policies in a folder online and/or in person with your other important documents, such as tax returns. That way if you need them they are there for use.

 

How Long To Keep Homeowners Insurance Policies in Colorado to Stay Covered

Keeping the literal copies of your homeowners insurance policy is one thing, but for some, getting rid of coverage makes sense on the surface. But if you dig a little deeper, you’ll note that it’s never advisable to forgo coverage.

It doesn’t matter if you have a mortgage or not, maintaining a homeowners insurance policy on your home is paramount. For some, a great way to save money is to avoid monthly premiums. Here’s why that can be a very costly decision:

• The average home in Colorado costs well over $500,000 to purchase. If you suffer a major or total loss, buying another home is a costly endeavor, and most would have issues accomplishing it without financial hardships.
• Furthermore, you’ll erase your equity. Real estate continues to be a major part of building wealth for Americans and a major loss will take much more than your place of refuge away.
• Even when you consider the price of homes these days, to rebuild, you’re going to need to consider inflation. Just because it costs a certain price to build your home doesn’t mean you’ll pay the same today. Labor and materials continue to rise making this costlier by the year.

 

However, knowing how long to keep insurance policies doesn’t just end with a home insurance policy. Failing to drive without an auto insurance policy in Colorado can cost you tens if not hundreds of thousands of dollars for repairs, medical fees, legal expenses, and more should you cause a wreck.

The best case scenario for an insurance policy is that you pay money each month never to use it. This can be a hard pill to swallow. But the alternative is far too risky to pursue. However, just because you need coverage doesn’t mean you should pay more than you need to for peace of mind.

Freedom Insurance Group isn’t a singular brand but rather partners with several carriers to help you shop and compare coverages and rates. Our team provides you with expert care and can help you pinpoint the protection you need at the lowest price possible.

Comparing your options gives you a wider scope of what’s available and since you’re shopping exclusively with top-rated carriers, you can rest easy knowing that the coverage and rate you see is from a company you can trust.

Our agents are here for you, so give us a call today at the number above to save on home and auto. We can even help you bundle your policies and save. If you don’t have time to talk, you can get a free, no-obligation home insurance quote or auto insurance quote in just a few clicks!