2022 Colorado Renters Insurance Guide

Also referred to as tenant insurance, renters insurance is a policy that protects a tenant’s belongings from damage emanating from a named peril. It pays for the loss related to theft, vandalism, some natural disasters, fire, bodily injuries, and water damage, among other perils. Renters insurance in Denver, Colorado, is particularly important because this city ranks 6th among the riskiest places for housing damages caused by natural disasters.

Renters Insurance in Denver – Is Renters Insurance Mandatory?

Renters in Denver and other parts of the country have no legal mandate to carry renters insurance coverage. In fact, only about 41% of tenants in the U.S. carry renters insurance. However, tenants are legally liable for any third-party injury or property damage that occurs on their rented property. Additionally, landlords are only responsible for the damage that occurs on the building structure and fixtures, unless they rent out a furnished house. Therefore, for adequate protection of your belongings, it is a good idea to have renters insurance. Take note that while renters insurance is optional, some landlords in Colorado require tenants to not just have it but also include them as “additional interests”. Failure to carry this coverage may compel the landlord to charge you additional rent, or in worst cases, terminate your lease, citing violation of terms.

The Cost of Renters Insurance in Colorado

The average cost of tenant insurance in Colorado is $128 per year, which is 20% lower than the national average. It is worth noting that renters insurance is relatively more affordable in Colorado than in many other states. This cost generally varies based on factors such as location, size of risk, the value of belongings, credit history, and claims history. Policyholders can, however, lower these costs by mitigating risks in their rented properties.

What Does Renters Insurance in Colorado Cover?

Renters insurance typically provides the following coverage options:

  • Personal property – This portion pays for the cost of repair or replacement of personal belongings damaged by a covered peril. For instance, if a fire erupts at your rented property, destroying all your belongings, renters insurance will cover the related expenses.
  • Liability – This policy pays for legal costs, claims, and medical expenses in case a third-party injury or property damage occurs on your property.
  • Medical payments– Also known as Coverage F, this policy compensates third parties for minor injuries sustained on your rental property.
  • Additional living expenses – If a named peril makes your house uninhabitable, renters insurance will also cover the cost of alternative accommodation.

Colorado renters insurance also extends coverage away from home. For instance, if, while on vacation, someone breaks into your car and steals your laptop, renters insurance will cover the cost of replacement. The liability portion of it will also pay for any liability costs incurred while you’re away from home.

Amazing Facts About Colorado Renters Insurance

  • Even if you’re not at fault, coverage F prevents minor injuries or incidents from escalating into bigger liability claims and lawsuits.
  • In case of a minor property damage incident, renters insurance can also cover the related costs to prevent a larger liability claim from arising.
  • While a typical insurance policy will not cover intentional acts, Colorado renters insurance pays for deliberate damage caused by children aged 13 years and younger.
  • This policy pays for the costs of staying in a hotel for some time in case a covered peril damages your rented property, making it uninhabitable.
  • Colorado tenant insurance also covers water damage from freezing, burst pipes, and water overflow, among others.

Renters insurance can help protect your personal finances and belongings in a rented property. To get a renters insurance policy that suits your unique needs, contact our experts at Spotlight Insurance Agency today.