The truth is I don’t know if this is a real estate bubble or not and neither does anyone else! What I can tell you is what I tell all my clients. “If you’re ready to buy then now is the right time”. Of course, I also tell them to carefully consider the following information:
With all that being said… If you’ve been sitting on the fence, wondering if you want to buy or not, please reach out to me. I will help you logically evaluate your unique situation so you can make an informed decision about whether or not you’re ready to buy.
Almost 2 years ago now we were hit by a bad wind & hail storm, here in Englewood, where I live. After the storm passed we inspected our roof and realized we were going to have to have it replaced. The good news for us? Our homeowner’s insurance covered the replacement cost of our roof. The bad new for our next door neighbor? His insurance only covered the actual cash value. Our neighbor ended up having to come up with almost 50% of his cost to replace his roof, boy was he mad!
This article was generously provided by Taylor Bigandt of American Family Insurance. Taylor is a local Insurance Producer in the Englewood area. The agency that Taylor works for has two locations, one in Lakewood and the other in Englewood. Taylor is the Sales Lead Manager at the Englewood office. You can reach Taylor by phone or email at 303-462-2100 or email@example.com.
Summer is fast approaching, and you know what that means? Afternoon thunderstorms. These storms place Colorado in the middle of “Hail Alley”. Hail season starts in mid-April and goes through mid-August. The damage can be catastrophic and may leave you wondering what to do next. If you have the correct coverage on your Homeowners Insurance when that next storm hits, you will not have to worry about what to do next. Many people are not educated by their agents on the coverage that will help them save money when a hailstorm or windstorm destroys their roof. When your roof is destroyed by wind or hail, there will be two different coverages that you can be covered under. The first coverage that I personally recommend having on your Homeowners Insurance is Roof Replacement Cost Coverage. The definition of replacement cost is “the current cost of replacing an existing asset or property with the same quality of construction”. The second coverage is Actual Cash Value. The definition of actual cash value is “the current cost of replacing an asset less the depreciated value”.
Roof Replacement Cost Coverage means that your insurance company will cover your roof at a replacement cost value, less your deductible, without taking into consideration the depreciated value. This means that if your roof costs $20,000 to replace with a $1,000 deductible, the insurance company will pay $19,000. If your policy does not include Roof Replacement Cost Coverage then your roof will be covered at Actual Cash Value. Actual cash value means that your insurer will pay to replace your roof, less the deductible and depreciation for the age of the roof. For example, your roof costs $20,000 to replace and it is 10 years old with a depreciating value of $500 per year along with a $1,000 deductible. The insurance company will then pay out $14,000 ($20,000-$1000=$19,000-$5,000(depreciation) =$14,000) leaving you to pay $6,000 to get your roof replaced.
When shopping for a policy it is important to understand what your wind and hail deductible will be. Some insurance companies are starting to go to a percentage deductible. Having a percentage deductible will help you save at the time of purchase on your homeowners insurance but most people don’t understand the consequences financially by selecting this deductible. A percentage wind/hail deductible will be based on your dwelling coverage. If you own a home that costs $400,000 to replace and you have a 1% deductible for wind and hail then your deductible will be $4,000. If you do not have $4,000 to spend then the policy you purchased will be of no use and your roof will not be replaced.
At American Family Insurance where I am currently employed we still offer a $1,000 wind/hail deductible. In addition, we offer Roof Replacement Cost Coverage on roofs up to 15 years old. This is longer than the industry average which is about 10 years. Our homeowner’s product will be able to properly protect your home during hail season in Colorado.
Again, if you have any questions or would like to inquire about a quote from American Family Insurance please give Taylor a call at 303-462-2100 or email Taylor at firstname.lastname@example.org
If you live in Colorado, you should be receiving your new property assessment and tax rate notification by May 1, 2017. Below you will find definitions and information that I have summarized from the Arapahoe County Assessors website for your review. It is extremely likely that your tax rate will have increased significantly as property values continue to increase at an extraordinary rate.
If you disagree with the property valuation you can make an appeal with your county assessor. The deadline is likely June 1, 2017 to file an appeal. You cannot appeal the mill levy as that is determined by the individual taxing authorities.
If you disagree with the property value the assessor has determined, and are considering making an appeal, feel free to contact me and I will gladly provide you with comparable property sales for documentation to use in your appeal.
Property Value – In Colorado the county Assessor, for the county in which your property is located, is required to reappraise (determine the market value) all real property (land and improvements) every 2 years in the odd numbered years.
Property Assessment – Every 2 years the assessor determines the actual (market) value for all real and personal property. Then a percentage (assessment rate) is multiplied by the actual value to determine the assessed value. In Colorado the residential assessment rate is currently 7.96%.
Mill Levy – Is the tax rate applied to real property. The mill levy is set by individual taxing authorities in your area, these might include schools, county, fire, water, sanitation, library, recreation districts and metropolitan districts. Mill levies within a county can vary widely.
Property Taxes – The final property taxes for your home and/or land are calculated using this information. The actual value is multiplied by the assessment rate which is then multiplied by the mill levy. The residential rate in Colorado currently is 7.96%. The assessment rate for all other property, including vacant land, is 29%.
Example: A home which has a market value of $300,000 (actual value) x 7.96% (residential assessment rate) x .081265 (mill levy) = $ 1,940.61 (annual tax dollars). Please note this is only an example. Your value and mill levy maybe different. (300,000 x .0796 = 23,880 then 23,880 x .081265 = 1,940.60)