Home Insurance for New Homeowners

Maybe you’re buying a new home for the family, or you’re purchasing your first-ever home in Centennial, CO. Either way, if you’re a new homeowner, you need homeowners insurance. If you’re new, it can be hard to know what home insurance covers and what policy is right for you. Learn the in’s and out’s of home insurance with the experts at Compass Insurance. 

What Does Home Insurance Cover? 

Home insurance provides you with financial protection in the event that your home sustains damage from an accident or other type of incident. Since new homeowners may be unfamiliar with home insurance protection, here are some areas in which you can receive coverage with home insurance: 

  • Property damage
  • Damage sustained from a natural disaster
  • Liability
  • Injury 
  • Damage of another person’s property
  • Other structures on your property

These are just some of the areas in which home insurance can provide coverage. The specific coverage types and coverage amounts will depend on what home insurance policy you choose. To find the right home insurance policy for you, visit Compass Insurance for a consultation. 

Why Is Home Insurance Important?

Home insurance doesn’t just provide your home with protection, but it gives you relief from the fear of not being covered. Life can be unpredictable, and your home is your best investment. You want to do everything in your power to make sure that your home is properly protected. It’s always better to have coverage and never need it than it is to never have coverage and need it one day. 

Protect Your Home with Compass Insurance

When it’s time to choose a home insurance policy to protect you and your family, visit Compass Insurance to find the right policy for you. Our office serves the Centennial, CO area, and you can contact us online or over the phone to receive your consultation. 

What Home Upgrades Should I Tell My Insurance Provider About?

Whenever you perform a home upgrade you will improve the value of your property. Ideally, you’ll insure these upgrades just in case it is ever damaged due to a storm, fire, or other issues. While you’re not obligated to tell your insurance provider about your home upgrades some are more important than others. Here at Compass Insurance, we want to help educate you on home insurance and the ins and outs within these policies. So, if you’re looking to upgrade and live around Centennial, CO, here are some of the upgrades you need to consider informing your insurance provider about. 

Kitchen and Major Bathroom Renovations

If you make any kind of major kitchen and bathroom renovations you should tell your insurance provider. If your home was damaged you wouldn’t want to repair these out of pocket all over again, would you? Now, if you just update fixtures and the paint color you don’t need to, but anything that you spend more than several thousand dollars on is something you should likely discuss. 

Finished Basement

If your home has a basement and you finished it up you’ll want to contact your insurance provider. This drastically improves the value of your home. You should consider doing the same if you finished your attic. 

Update Your Home Insurance Today

It doesn’t matter if you currently have home owner’s insurance, there’s a good chance you can find a policy that better fits your personal needs as a homeowner. If you’re interested in shopping around and finding a new policy that covers your property our staff here at Compass Insurance is here to help. So, if you live in Centennial, CO we are happy to address all the questions and concerns you might have. 

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.

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. 

Safety Equipment to Have on Hand in Your Home

When you keep your home safe, you ideally have more of a sense of relaxation and calm. Here are some key pieces of safety equipment to have in your home, and these tips are coming to you courtesy of Compass Insurance serving the Centennial, CO area.

Carbon monoxide detector

It is really important to have a way to be able to detect carbon monoxide problems. The challenge is that carbon monoxide cannot be smelled or seen. Thus, you need to install a carbon monoxide detector so you can properly monitor. 

Smoke detectors

How many smoke detectors you need in your home will vary based on factors like how large your home is. If your home has more than one level, you need a smoke detector on each level of the house. Make sure you have fresh batteries in smoke detectors at all times.

Fire extinguisher

Every home should have at least one fire extinguisher. When a fire breaks out, seconds matter. So you need to have some of your own safety equipment so you can be more proactive and self-efficient.

Fire alarms

Fire alarms provide even more safety equipment to your home. Make sure yours are tested periodically to verify that they are working properly. Just be aware that the firm alarm testing is extremely loud.

First-aid supplies

You always need to have certain basic first aid items on hand. Those include bandages, antibacterial ointment, sunburn soother, medications, pain relievers, and hydrogen peroxide.

It pays to be prepared by making sure you have all the necessary safety equipment around your house. Once you have gathered your essential equipment, keep all of that organized and in a safe but easily accessible spot.

Does homeowners insurance in Centennial, CO cover my shed and outbuildings?

You trust your homeowners’ policy to protect you in case anything ever happens, and the last thing you need in the event of a disaster is a surprise where you find out certain important properties aren’t protected. If you are in Centennial, CO, we at Compass Insurance can help you understand your current policy and see if you need to make any changes.

What Is Normally Covered?

Your homeowners’ policy is a contract, and most people pay the most attention to the coverage amount and the deductible. However, it is important to also pay attention to any limitations or exclusions. For instance, some policies don’t cover damages because of flooding, or injuries caused by inherently risky items like trampolines.

The physical structure of your home is covered, including the building itself and most of its contents. Your clothing, appliances, electronics, decorations, flooring, and everything else in your home should all be protected under your policy.

Making Sure Your Outbuildings Are Protected

When you purchased your policy, an agent probably obtained photographs of your home, and that would have included a picture of any structures on your property, like a shed or detached garage. These are considered part of your property, and they will normally be protected. If you added an outdoor structure after purchasing your homeowners’ policy, it wouldn’t hurt to inform your agent. There may also be limitations as to how much is covered for outdoor structures, so you should check your contract if you have any questions.

Just like with any other contract, you will be safest if you make sure any additional outbuildings are mentioned in your contract. If you live in Centennial, CO and are thinking about adding to your homeowners’ insurance, or if you just have any questions, call Compass Insurance today.

Why You Might Want to Update Your Home Insurance

Do you have enough home insurance? Many owners are unlucky and, when disaster strikes, their coverage is insufficient.

The best thing to do to prevent finding yourself in this position is to speak with a knowledgeable agent at Compass Insurance, serving the Centennial, CO region. Ask what they believe is the best additional coverage for your unique situation. Then, you will be able to rest assured that when something goes wrong, you are well protected.

Following are some top reasons why you might need to update your current home insurance.

Major Renovations

Have you remodeled a room or your entire house? If so, the value may have gone up. Speaking with an insurance agent about increasing your home insurance would be wise.

You may also want to think about reviewing your policy even before embarking on a major remodeling project. Ensure that you are covered for any possible damage that may arise during the renovation.

New Pet

A new dog, cat or other pet may necessitate a revision of your home insurance. Animals can destroy property, either yours or that of a neighbor.

Furthermore, an aggressive pet can lead to costly legal problems if they attack or scare someone at your home. Your insurance may be able to help you deal with this situation if you have planned ahead. Be sure to talk to your agent about your specific needs.

Recently Retired

Have you left the workforce? This change of circumstance may require you to update your insurance policy. Now that you no longer have to leave the house each day, you will be around much longer. Consequently, the odds of a home-based accident increase.

Get Professional Advice

Do not waste time. Contact the experienced staff at Compass Insurance, serving the Centennial, CO region. They can provide you with a quote on an updated policy that will hopefully make your day.

 

Why Buy Homeowners Insurance?

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!

What are the Benefits of Home Insurance?

When you are looking to purchase a home in the Centennial, CO area, there are many different important decisions that need to be made. One important decision that you need to make is when you are looking to purchase a home insurance policy. There are many benefits that come with home insurance that you need to consider and think about when shopping for a policy.

Property Protection
One of the primary advantages of having a home insurance policy is that it will provide you with necessary protection for your home.  Your home is a very important investment that you need to properly care for. If there is a fire, major storm, or damage created by something else, your home insurance policy will be there to protect you. This will prove to be very beneficial in the event of an emergency. The policy will provide you with protection for the home structure as well as your personal belongings.

Liability Protection
One thing that many people do not think about when they own a home is how much liability they are taking on. If you ever have any guests over to your home, you could be found liable if they end up getting injured while at your property. Having a home insurance policy will provide you with liability protection as well. This will ensure you are covered if you are ever sued and found liable for an accident.

Once you are ready to buy a home in the Centennial, CO area, the first thing you should call Compass Insurance. When you contact Compass Insurance, you will learn far more about your insurance needs and all of the options that you have to choose from. The team will help to make sure you get the right policy that covers your needs. 

 

 

 

 

 

Disaster Preparedness and Recovery Tips to Protect Your Property When The Unexpected Strikes

Centennial, Colorado is known for its refreshing, outdoor recreational areas that are enhanced by stunning vistas of the nearby Rocky Mountains.  However, its rolling hills and ravines can present challenges when natural disasters strike.  Throughout the years, Colorado residents have experienced a number of these hazards that include floods, fires, earthquakes, blizzards and even avalanches.  Here are the two most likely natural disasters that you’ll face in Centennial, Colorado, and ways to prepare for them.

Floods

Most of you have flood insurance, but you’ve perhaps forgotten the specifics of your policy.  Now is the time to go over your paperwork and contact your Compass Insurance Group agent if you have any questions about gaps in coverage for your home or commercial property.  Some things that may not be covered by your basic flood insurance policy are:

  • Finished basement furnishings and fixtures

  • Valuable paperwork that you could’ve protected

  • Mold damage that you could’ve prevented    

  • Septic tanks  

For those of you who are waiting for an alarming weather forecast before obtaining flood insurance, be aware that your property will not be covered until 30 days after you obtain the policy.  Now is the time to protect your real estate investment from flood damage.  

Wildfires

The personal safety of you, family members and colleagues should be of primary importance when it comes to wildfire disaster preparation. You want to have designated evacuation routes and meeting spots identified ahead of time. It’s best to conduct evacuation drills with your family or co-workers periodically to keep them ready for actual incidents.  Create emergency supply kits that you can take with you if you need to evacuate quickly.  Here are some things that your kit should include:

  • Three-day supply of potable water and non-perishable food

  • Change of clothing

  • Hygiene and sanitation items

  • Copies of valuable paperwork

  • battery operated radio

Final Thoughts

Natural disasters usually represent trying times for everyone. However, doing some upfront planning can ensure that you keep your sanity and more of your money intact. Call your Compass Insurance Group agent to find out the best ways to insure your home or commercial property against flood and fire hazards.