The Colorado Springs Real Estate Connection welcomes the Wermers Allstate Insurance Agency as they answer some fequently asked questions about Homeowner's Insurance.

Q: How can I save money on my homeowners insurance?
A: Raising your deductible is one way to save money. Consider a deductible of at least $500 or even $1,000. You could also save by insuring both your home and car with the same company or qualifying for other discounts.

Q: I have a policy with "replacement cost." Does that mean my insurance will pay to rebuild my home?
A: Typically, replacement cost means your insurance will pay the cost (up to the policy limits) of rebuilding or repairing your Colorado Springs home without a deduction for depreciation. However, it may not take into consideration price increases for labor and supplies. A policy with extended replacement costs may provide better protection by paying a percentage over the limit to rebuild your home. For example, if you purchased insurance with an extended replacement costs of 20% on a $200,000 policy, you could get up to an extra $40,000 in coverage to pay for the additional expenses of replacing your home.

Q: If I file a claim, do I have to work with the insurance company's contractors?
A: The process for selection of a repair company may vary by your insurance company. With Allstate, you can choose the repair firm, and an Allstate claim representative will work with them to agree to the cost. Or, you can choose the contractor participating in the Allstate vendor referral program, and workmanship guarantee will be issued on behalf of the vendor for up top three years from the date the repairs on your Colorado Springs home are completed.

Q: Does a homeowner's policy include flood insurance?
A: Homeowners polices usually do not provide coverage for flood damage. However, if your community participates in the National Flood Insurance Program, you may be able to purchase flood insurance from a local insurance company. The cost varies based on a number of factors. What happens if you decide not to buy this type of insurance and your home is flooded? You'll only receive federal disaster assistance if the flood is declared a disaster by the U.S. President. The assistance is typically a loan, which must be paid back with interest. If you buy flood insurance from an insurance company, claims are paid even if the U.S. President does not declare a disaster. Better yet, there's no payback requirement.

For more information on Homeowner's Insurance in Colorado Springs, please contact the Wermers Allstate Insurance Agency at
(719) 264-9272 or visit their Allstate Website.