Owning a home in Summit County, whether it’s a cozy single-family retreat in Breckenridge or a slope-side condo in Keystone, comes with its own unique set of joys and responsibilities. One of the most critical aspects of homeownership is making sure your property is adequately insured. Mountain homes are subject to specific risks, from heavy snowfall to wildfire threats, and understanding these factors is key to protecting your investment.
Here are essential insurance tips for mountain property owners in Summit County to keep in mind, whether you’re buying a new home or reassessing your current coverage.
1. Understand the Specific Risks of Mountain Living
Living in the mountains comes with natural beauty, but also challenges:
- Snow Load: Ensure your policy covers potential damage from heavy snow and ice accumulation, especially for single-family homes. Roof collapses and ice dams are more common in areas with extreme winters.
- Wildfire Coverage: With increasing wildfire risks across Colorado, confirm that your policy includes protection against fire damage.
- Flooding and Ice Melt: Contrary to popular belief, mountain homes are not immune to flooding. Spring runoff from snowmelt can lead to flooding, and most standard homeowner policies don’t include flood insurance. Consider adding this coverage if your property is in a lower-lying area.
2. Review HOA Master Policies for Condos
If you own a condo, much of your exterior insurance will likely be handled by your Homeowner Association’s (HOA) master policy. However, many buyers (and even owners) are often unclear about what’s covered. Here's what to check:
- What Does the HOA Cover? Typically, the HOA covers the exterior structure, roof, and shared amenities. However, you are responsible for insuring the interior, including appliances, flooring, and cabinets. Make sure you have an HO-6 (condo) policy for adequate interior coverage.
- Recent HOA Trends: In Summit County, HOAs are cracking down on certain property uses and safety regulations, such as prohibiting gas grills or requiring specific balcony inspections. Be aware of these changes, as they can impact how you use and insure your property.
- Deductible Assessments: Many HOA policies now include high deductibles. If a large claim is made, homeowners may need to cover a portion of the cost. Double-check your coverage to make sure you’re prepared to handle these potential assessments.
3. Liability Coverage for Short-Term Rentals
Short-term rentals are a popular option for second homeowners in Breckenridge and surrounding areas. However, renting out your property comes with added risks:
- Specialized Policies: Most standard homeowner policies don’t cover short-term rental activities. Look for a policy designed for vacation rentals, or add a rider to your existing policy.
- Guest Liability: Ensure your policy includes liability coverage in case a guest is injured on your property.
- HOA Rules: If you own a condo, confirm that short-term rentals are allowed under your HOA rules, as restrictions are becoming increasingly common in mountain communities.
4. Protecting Outdoor Features and Belongings
Mountain homes often come with unique outdoor features like hot tubs, fire pits, and large decks. These features, while wonderful, may require additional coverage:
- Detached Structures: If you have a shed, garage, or gazebo, confirm they are covered under your policy.
- Outdoor Equipment: Snowmobiles, skis, and bikes are common in mountain homes, but they might not be covered under a basic policy. Add coverage for these high-value items if needed.
- Grill and Fire Pit Restrictions: Many HOAs in Summit County now prohibit gas grills or fire pits due to wildfire risks. Be aware of these rules, as they could impact your liability if not followed.
5. Work with a Local Insurance Agent
When it comes to insuring your mountain property, working with a local agent is invaluable. Local agents understand the unique challenges of Summit County real estate and can help you find the right coverage. They can also provide insight into:
- Changes in state laws or local ordinances.
- Specialized coverage options for mountain properties.
- Tailored policies for second homes or investment properties.
6. Regularly Review and Update Your Policy
As property values rise in Summit County, it’s essential to ensure your coverage matches the current replacement cost of your home. Additionally, if you’ve made upgrades to your property—such as remodeling the kitchen or adding a hot tub, make sure your policy reflects these improvements.
7. Check Your Policy for LLCs or Trusts
Many mountain homes in Summit County are owned under an LLC or Trust for tax or estate planning purposes. However, this can lead to insurance complications if not properly addressed.
- Add the LLC or Trust to Your Policy: Ensure your insurance policy explicitly lists the LLC or Trust as an additional insured or part of the policy.
- Avoid Claim Denials: Insurers in some states, like California, have denied claims simply because this small but critical step was overlooked. Protect your investment by confirming this detail with your provider.
Final Thoughts: Protect Your Piece of Summit County
Whether you’re nestled in the heart of Breckenridge or enjoying Keystone’s slopeside amenities, having the right insurance is key to protecting your mountain investment. By understanding the risks, staying on top of HOA changes, and working with local professionals, you can ensure peace of mind for years to come.
If you’re looking to buy or sell a home in Summit County and have questions about insurance or other aspects of mountain living, I’d love to help! Reach out anytime to chat about your real estate goals.
