How To Value a Home For Proper Home Insurance

There are many ways to value a home. Let’s consider the different ways and how to obtain adequate home insurance coverage. If you prefer, you can simply call your agent at Compass Insurance, serving Centennial, CO and the surrounding area, and make them do all the work. They will review existing insurance that you have, if any, and give you a professional recommendation that you can rely upon as being in your own best interest. To be a better-informed consumer it is helpful to know how home valuations are calculated.

How does valuation work?

A home has five valuations, which are:

1. Private Mortgage Insurance (PMI)

2. The Purchase Price

3. The Resale Value

4. The Reconstruction Cost

5. The Replacement Cost (including the contents)

Over 60% of homes in America are either not insured or underinsured. That risk you want to avoid.

Private Mortgage Insurance Valuation

Private mortgage insurance (PMI) is sometimes required by a lender to close the loan. This adds a monthly premium included in the monthly mortgage payments. This insurance only covers the remaining balance on the loan for the home. 

PMI does nothing at all to protect a homeowner. It is often wrongly thought by the homeowner to be adequate insurance, which it is not. It does not cover any money paid for the down payment or the closing costs to buy the home. It does not cover any equity value that might increase over time.

Purchase Price Valuation

The purchase price is easy to calculate. You simply look up the total price paid including the down payment and the closing costs in the document to buy the home. Insuring a home for the purchase price is also underinsured for two reasons. Usually, the home goes up in value or it becomes more expensive to rebuild it if it is destroyed.

Resale Value

The resale value is what the home would sell for to another person. This is estimated by using three comparable homes that are listed for sale. They should be as close to the characteristics of your home as possible. Usually, this value is higher than what you paid for the home but not always. In depressed real estate markets, homes sell for a fraction of their purchase price. Those homeowners are "underwater” because the homeowners owe more for the home loan than what it is worth.

Reconstruction Cost

This value is the average price of construction of a new home of the same type in the same area. This is the gold standard for home insurance coverage. It needs to be regularly updated as construction costs increase or the home is improved.

Replacement Cost

This adds to the gold standard and may be set up to cover the cost to replace anything lost including the contents of the home, up to the policy limits.

Summary

Now, that you are well-informed, talk over your circumstances with your agent to make sure you have adequate coverage. Ask about flood insurance too, which is a separate coverage that everyone needs. To get an insurance review and a quote, contact your agent at Compass Insurance in Centennial, CO.

Is Auto Insurance Required in Colorado?

For a lot of people in the Centennial, CO area, owning a car is a necessity. When you have a car in this area, it will be a lot easier to get around the Denver metro area. If you are going to have a car, no matter how often you drive it, considering your insurance needs is important. There are several situations when auto insurance is required in Colorado. 

When Driving on Public Roads

One situation when having auto insurance is required is when you are going to be driving your car in public. Similar to other states, those in Colorado need to have liability auto insurance whenever they are going to use public roads. When you have this form of auto insurance, it is going to allow you to have coverage to pay restitution if you were to cause damage during an auto accident.

When Taking Out a Loan

The majority of people that purchase a vehicle today need to take out a loan to finance the purchase. As long as the loan is outstanding, you are going to need to have auto insurance. Auto loan providers will want you to have this coverage as it ensures their collateral is covered and protected. This way, if your car is stolen or damaged, you will at least have enough coverage to pay off the loan.

Having a car in the Centennial, CO area is very common. When you do get a car in this area, choosing the right auto insurance policy is a big decision. Due to the challenges that come with this decision, working with Compass Insurance is a good idea. The team at Compass Insurance can help you to find an auto insurance policy that works for you based on your needs.

Do you need toy insurance?

If you are an owner of toy collections that are valuable and important to you, obtaining toy insurance may be a priority. This type of insurance can also cover toys that move, such as all-terrain vehicles (ATVs), motorcycles, boats, and Recreational vehicles (RVs), although separate policies can be obtained for each of those.

If you have spent a lot of time and money on your prized collection, you will want to obtain an insurance policy for your investment to protect it if there is a fire, flood, burglary, theft, or other disastrous incidents. When it comes to your recreational toys, an insurance policy will cover liability expenses you may be responsible for if you cause an accident while driving. You can also obtain a comprehensive policy that will cover losses caused by a disaster or an underinsured or uninsured policy that will help cover the costs of repairing or replacing your recreational toy if an accident occurs that is caused by someone with little or no insurance coverage.

Toy insurance will give you the peace of mind of knowing that if a disaster occurs, your beloved collection or fun recreational vehicle can be repaired or replaced. Your policy coverage will be based on the amount your collection of items is worth so you can replace your collection or if it is a rare one that cannot be replaced, at least you will be compensated for your loss.

Whether you own a collection of rare wines, priceless baseball cards, rare coins, or some other collection that means a lot to you, monetary or otherwise, you should ensure that it is protected through a proper insurance policy in case of a horrible incident that may occur.

In Centennial, CO, the experienced and trusted agents at Compass Insurance can assist you with all of your toy insurance needs.

Tips to Protect Your Motorcycle From Theft When Traveling

There is nothing more exciting than hitting the road for a long-distance trip on your motorcycle. When traveling by motorcycle it’s important to be well-prepared and organized. One of the most important things to consider is how you’ll protect your bike against theft while traveling. Motorcycle theft is a common problem, so to avoid having your trip to Centennial, CO ruined because your motorcycle is stolen; Compass Insurance has put together a few tips to help you protect your motorcycle from theft when traveling.

Park Smart

When you stop for the night, be sure to park in a well-lit area. If there are other bikes in the parking lot, consider parking in the same area.  Park the motorcycle in an area where you will have a clear view or if you’re unable to park in an area that you can see from your hotel room, ask the front desk if you can park in view of the front entry.

Use a Cover

Covering your bike will often make it less attractive and noticeable to those passing by. There are several motorcycle covers to choose from, but make sure you choose one that is compact and lightweight to help keep you traveling light. A cover will also come in handy for keeping the bike dry should it unexpectedly rain during the night.

Install an Alarm

An alarm may be a good investment and it may provide you with a discount on your motorcycle insurance. There are several motorcycle alarm options to choose from, but it’s best to choose one that comes with perimeter and motion sensors as well as a paging system that will alert you if the motorcycle is approached or moved.

Remember to follow the rules of the road and be aware of others on the road. Ride safe and have fun, but remember to take the steps necessary to prevent a thief from stealing your motorcycle.

Residents of Centennial, CO interested in insuring their motorcycle should contact Compass Insurance.

4 Ways to Secure Your Boat at Home

Many Colorado boat owners living in or around Centennial, CO store their boat during the winter months with hopes to keep it secure until boating season comes back around. At Compass Insurance, we’ve found four ways for you to keep your boat secure when you are not taking advantage of the water. 

Lock the Boat Trailer and Make it Unmovable

Once you have loaded your boat one last time and are locking it away until warm weather returns, make sure that you lock the boat trailer it is on. A boat lock prevents thieves from backing their truck up to the trailer and taking off with the boat.

Location is Important

If you are planning to store your boat at your home, make sure that you put it in a place where it is not easy to access for stealing. Tucking it in a corner on the backside of your home or locked in a fence will deter most thieves because of the difficulty of trying to access the boat. 

Get a Boat Cover

Whether you are planning to store your boat at home, in a storage facility, or at a marina, it is best to have a full boat cover on your boat when it is not in use. This is simply to keep others from taking advantage of your graphics and features while it is being stored. 

Install an Alarm

Boat alarms are now as easy to install and track as any other alarm system that you can purchase. If your boat is stolen, you will be able to alert the authorities immediately and track the boat. 

Get the Boat Insurance You Need

When you purchase boat insurance, you really are securing your boat and protecting your investment. If you live around the Centennial, CO area, call our agents at Compass Insurance today for more information. 

How Do Centennial Businesses Benefit from Commercial Insurance

The city of Centennial, CO is well known for having a great local economy and plenty of tourist traffic. Due to these factors, it can also be a great place to start and own a business. While there is a lot of potential for success in this area of Colorado, business owners should still make sure that they have a quality commercial insurance policy. A full commercial insurance policy can benefit a company in many different ways. 

Reduces Your Concern of Liability

All business owners are going to take the proper steps to ensure they deliver quality and safe produce. However, accidents do happen from time to time. In these situations, the business owner could be found liable if a customer suffered an illness or bodily injury. When you have a commercial insurance policy for your company, it will give you coverage for liability. This will drastically reduce your liability risk.

Covers Your Company Assets

To get your business up and running, there is going to need to be an investment in inventory, equipment, and other assets. Businesses that lose these to theft, fire, bad weather, or another unforeseen issue could be financially devastated. Due to this risk, you need to keep a full commercial insurance policy at all times. This insurance will protect you and make sure that you continue to have financial support if your business assets do incur these types of losses.

Those that are in the Centennial, CO area will find that choosing the right commercial insurance policy can be complicated. Because of this, it will make sense to work with a seasoned insurance professional to choose a good policy. Compass Insurance is a great resource for anyone in the area. Compass Insurance will explain all of your options and help you to get into a good policy. 

Three factors to consider regarding your auto insurance policy limits

One of the biggest considerations to take into account when you’re purchasing auto insurance is what your coverage limits are. Your coverage limits are the maximum amount a claim can be worth for various expenses such as medical bills and property damage, for example.

There are numerous factors that could influence what the claim limits should be for a policy in Centennial, CO from Compass Insurance. The following are three of the most significant factors influencing auto insurance policy limits: 

State laws

Each state sets its own mandatory minimum coverage amount when it comes to auto insurance. In the state of Colorado, motorists need to carry limits of at least $25,000 for bodily injury. It’s also required to have at least $50,000 of coverage per accident and $15,000 of coverage for property damage. 

The value of your vehicle

If you have collision coverage, the value of your vehicle should determine your needed coverage limit for this type of coverage. Your collision coverage limit should be any less than the value of your vehicle. This way, you could potentially be compensated for all of the collision damages your vehicle experiences if it is declared a total loss after an accident. 

Your budget

Of course, you’ll ideally want the highest limits possible to make sure any expenses resulting from an accident are covered. However, you may be limited by your budget. The higher your coverage limits are, the more expensive your policy is going to be.

You need to consider the resulting monthly premiums you’ll be required to pay for corresponding coverage limits. Then, choose the coverage amount that is affordable to you and offers the best value. 

If you’d like to explore our policy limit options for insurance for Centennial, CO motorists, get in touch with us at Compass Insurance. 

Reasons to Get a Colorado Home Insurance Policy

Centennial, CO is a wonderful community to live and work. Along with this, it can be a great place to buy a home as there continues to be a lot of potential for asset appreciation in this city. If you are going to purchase a home in this area, you also need to make sure that you are properly protecting your assets. The best way that you can do this is by getting a full home insurance policy as they can protect you in several different ways. 

Ensures Home is Protected

Similar to those that are in any other area, there is always a risk in Centennial that you could suffer a loss due to fire, bad weather, theft, or even vandalism. Since these risks are always present, it would be a good idea to protect your home with insurance. When you have a home insurance policy, you will get coverage against all of these risks.

Liability Mitigation

If you own a property and someone is injured while on your premises, you could be found liable for any damages. Since this is a risk that all people take on at all times, it is important to get good insurance coverage for these situations. This will protect you well against liability concerns that come with homeownership.

If you do buy a home in the Centennial, CO area, it is clearly very important that you get a good home insurance policy to cover it. To make sure that you get the best policy possible, you should contact the team at Compass Insurance. The team of insurance professionals at Compass Insurance can handle all of your home insurance needs. This will make sure that you get into a home insurance policy that protects your valuable asset and gives the liability protection that you need to have peace of mind. 

What is Toy Insurance and Why Do I Need It?

When you think of toys do you picture dolls and action figures, ponies and monster trucks? Or do you picture grown-up toys like ATVs, dune buggies, and watercraft like speed boats and jet skis, because these are the toys you want to insure. Compass Insurance serving Centennial, CO is here to help.

Toy Insurance Explained

Toy insurance is a type of insurance that covers your recreational vehicles and crafts like four-wheelers, fishing boats, snowmobiles and various other types of off-roading and seasonal machinery.

If the vehicle spends most of its time in storage, only coming out when the seasons change or the mood strikes, it likely qualifies for toy insurance. This helps keep you and your craft protected in case of an accident while in use. 

It comes is the same varieties as auto insurance:

  • Liability Coverage

  • Comprehensive and Collision

  • Uninsured/Underinsured

  • And Supplement/Additional Coverages 

Why You Need It

As with most toys, we tend to share them with friends and family. This can be fun for everyone, but when a user has an accident, gets injured or damages your toy, who pays for it? Toy insurance, hopefully. No one wants to have to foot the bill to repair or replace a broken toy.

Having the right type of toy insurance can help keep you, your friends and family and your toy out of the woods in case someone takes a spill. 

How to Get Toy Insurance

If you’re in or around the Centennial, CO area and you want to protect your toys you’ve come to the right place. Compass Insurance can help you find the right type of coverage for your toys with they’re in storage and when they’re in use. Talk to an agent today to learn more.

What To Do About Insurance When Customizing a Motorcycle

Customizing a motorcycle is fun but it may also be a significant investment. If you are making custom modifications of your motorcycle, be sure to inform your insurance agent at Compass Insurance serving Centennial, CO and the surrounding area.

How to Increase the Value of a Motorcycle with Custom Work

Custom work on a motorcycle adds value when the additions are more useful to others. For example, if the seat is worn out, installing a new one is an obvious improvement. New hand grips, a new headlamp, and turn-signal lights are very helpful improvements too. Other practical additions, such as a fly screen also add some value.

A new paint job should increase the value. However, be careful when doing custom paint jobs because beauty is in the eye of the beholder. You may love the dragon with flames painted on the gas tank; however, others may think it looks stupid. It is better to stay with solid colors with a bit of design flair in the racing stripes and trim but do not go overboard with a specific image.

The increase in the value of the motorcycle may not be enough to include the value of the labor to make the custom work. If the custom work is very expensive, then you may need to get a certified appraisal from an appraiser acceptable to the insurance company.

When possible, use original manufactured (OEM) parts. If you choose to install aftermarket parts, make sure they are high quality and as close to original parts as possible. Heavy customization with non-original parts might make the value of the motorcycle go down. If you change out original parts with custom parts be sure to save the original parts so that you can change them back when you a ready to sell the motorcycle if this helps get a better price for it.

Contact your agent at Compass Insurance in Centennial, CO to get a motorcycle review and a quote for motorcycle insurance.