Month: December 2018

Why Buy Homeowners Insurance?

Posted on by AgentInsure

Compass Insurance in Centennial, CO are experts in homeowner insurance and will guide you in the right direction to purchase a policy that will meet your needs. Is homeowners insurance just another expense or is it essential? What if something happens to your personal property or your home? A good homeowners policy results in saving money if your home or belongings are damaged. A policy will also raise your awareness of how to protect your home from any natural disaster by upgrading your home.

While homeowners insurance essential to protect your dwelling, personal property, and financial interests, it is not required by law. However, to obtain a mortgage on your home, insurance is required as a matter of contract but not as of law to protect the financial interests of the mortgage company.

Eight types of homeowners policies have their unique coverage to protect homeowners from certain events which harm the dwelling. These policies or forms were promulgated by the Insurance Office, Inc. and the American Association of Insurance Services. These organizations collect data, create rating information, standard policy forms, and present this information to state regulators to be used by their client insurance companies. These policies exist for homeowners for both new and older homes, condos, renters, and owners of mobile homes. The specific policy forms are:

1. HO-1 is the basic form that covers against certain named perils.
2. HO-2 is named the broad form, which many homeowners purchase which is a broad form policy that is a type of homeowners coverage covering HO-1 perils plus other events.
3. HO-3 is considered a special form because it covers a broad range of events and is considered an open peril policy.
4. HO-4 policy is renters insurance
5. HO-5 is viewed as a comprehensive form which covers more perils than the other policies.
6. HO-6 is the condo form.
7. HO-7 is the mobile home form
8. HO-8 is the older home form

The agents of  Compass Insurance in Centennial, CO will advise you of your homeowner insurance needs.  Please call for an appointment!

When do you no longer need collision coverage on your car?

Posted on by AgentInsure

When you have an older vehicle that is of low value, you might be better off dropping collision coverage. Colorado requires you to have liability coverage-meaning insurance to cover damage you cause in an accident. The professionals at Compass Insurance in Centennial, CO can help you decide which policies are best for your situation. 

If you are in an accident and are at fault, liability coverage will cover damage to the other vehicle. In that situation, the collision coverage would pay for damage to your car. This would also be true if you ran your car into a tree or something and had damage.  If you owe on your car, the lending company probably requires you to have collision coverage. 

If you own your car outright there is a situation where you might want to not have collision insurance. The insurance company will not pay more than the market value of the car, regardless of how much coverage you have. If your car is worth $3,000, and it sustains $4,000 in damage, you will only get $3,000. The insurance company will declare it a total loss and will pay you only the market value.  You would still get the market value if you had collision insurance, so there is a bit of a risk factor to consider.

If you choose to go without collision insurance, another option is to have uninsured motorist coverage. While coverage is the law, not everyone obeys the law, so it is possible to get in an accident with a driver who has no insurance or means to pay for the damage he or she caused. In that case, uninsured motorist coverage would pay for your car’s damage if the accident were not your fault.

The value of your car that you own outright is the key factor in deciding what coverage you need. Call or visit the Compass Insurance agency in Centennial, CO and let them help you find the coverage that is right for your situation.