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How does homeowners insurance work in Colorado?

Dwelling value vs. market value: What are you insuring? With home values steadily rising in Colorado in recent years, we have gotten many questions about why the dwelling limit listed on the homeowners insurance is lower than the market value of the home. Many homeowners are concerned that their home is underinsured since they could sell it for more than what the dwelling is insured for. With spring coming up and the real estate market starting to pick up again, it might be a good time to explain what home buyers are actually insuring.
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