At Exceptional Stays, we know that owning a home in Telluride is both a privilege and a responsibility. Our homeowners invest not just in property, but in a lifestyle, and protecting that investment requires thoughtful planning. That’s why we often turn to our trusted partners for their expertise.
In this op-ed, Elaine Giuliani of Latitude Insurance offers invaluable insights into one of the most important yet often overlooked aspects of homeownership: insurance. From navigating rising premiums and wildfire mitigation requirements to understanding coverage for short-term rentals, Elaine distills complex issues into practical guidance every Telluride homeowner should know.
Consider this your seat at the dinner table with one of the region’s sharpest insurance minds: wise words that can save you time, money, and peace of mind.
When I sit down at a Telluride dinner party, the inevitable “So, what do you do?” comes around. My answer either brings the conversation to a screeching halt—or it lands like finding out you’re seated next to a sommelier just as the wine is poured. Yes, insurance. Assuming you’re more intrigued than bored, here’s how the conversation usually unfolds—especially when it comes to home insurance.
What the heck is going on with insurance?
Much like the rest of the economy, home insurance is being driven up by inflation, and recent the severe environmental catastrophes are adding to the conversation. Since it is tied closely to construction costs, every spike in materials and labor shows up in your premiums. Add to that new tech—pinpoint mapping, aerial imagery, drone flyovers, permit tracking, and finely tuned algorithms—and underwriters might actually know more about your house than you do.
Do I need rental coverage to short-term rent my secondary home?
Short answer: yes. If a carrier doesn’t know you’re renting, they can deny a claim. The good news? Many high-net-worth carriers (Chubb, Cincinnati, AIG/PCS, Berkley One, and others) now embrace secondary homes with short-term rentals—as long as they cover your full package (primary home, autos, personal articles, umbrella).
They typically require:
- 3–4 night minimum rentals
- Professional property management (Exceptional Stays is a great choice!)
- Guests who sign contracts and get vetted
- Your home being used more by you than by renters
If your setup doesn’t check those boxes, surplus carriers step in to cover the risk on a non-admitted market. That market is also a handy solution if you can’t package your primary home.
What devices are required for insurance?
Automatic water shut-off valves are now standard for every secondary home with a high-net-worth carrier (and for most primary homes above a certain value). They detect prolonged water flow and shut it down before you end up with an indoor swimming pool you didn’t plan on. Here’s more info from Chubb on water shut-off devices.
Centrally monitored alarms (fire, smoke, burglar, low-temp) are also required. Yes, burglary is rare in Telluride, but these requirements are statewide.
Do I really have to cut down the trees around my mountain home?
If Smokey Bear had an insurance license, this would be his spiel. Protecting your home means creating fire defensible space:
- Zone 1 (0–5 feet): Non-combustible only. Clear gutters, remove pine needles, trim back branches, keep grass short, hardscape is your friend.
- Zone 2 (5–30 feet): “Lean, green, clean.” Limb trees up to 8 feet, space them apart, keep grasses cut, store firewood further out.
- Zone 3 (31–100 feet): Park-like and open. Prune and limb trees.
- Zone 4 (100+ feet): Clear deadfall.
Bonus: add ember-resistant venting or 1/8-inch mesh on all openings.
My home has great clearance—why is it still high wildfire risk?
You can do everything right—devices, clearance, mitigation—and still land in a high wildfire zone. Why? Carriers base rates on models projecting the probability of a burn over the next 10 years. Your home’s rating reflects not only your property but the surrounding vegetation, including National Forest or BLM land. Unlike flood insurance, wildfire ratings are generally based on future risk, not past history.
Speaking of flood insurance—do I need it?
- In a flood zone with a traditional bank lender? Yes, required.
- Not in a flood zone? Optional, but consider it if you’re worried about groundwater or mudflow. Standard home insurance won’t cover that.
Dinner’s over, but you still have questions?
We’re always happy to keep the conversation going, and pair the right coverage for you with the right provider. We are licensed to insure nationwide, and our Telluride office is located at 171 S. Pine Street. Our team of licensed agents specializes in personal insurance, business insurance, and workers comp.
Reach us anytime:
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970-728-2200