A home has traditionally been and still is the best single investment anyone will ever make and 72+ million Echo Boomers (Born 1977-1994) will soon be hitting the buyers market.

In Colorado the population increase is estimated to be 37% with 200,000 of them in Weld County. Frederick alone is slated to add 2000 homes. A home may be a single family dwelling, a condo, or a townhouse but its present and future value is so important that protecting it properly is a must. While there is many important disciplines involved in acquiring a home (Realtors®, Title Companies, Home inspectors, Mortgage Companies, Insurance Agents) usually the first contact the home buyer sees is the Realtor® who must have a general knowledge of each discipline in order to assist the buyer through the process and where to direct the buyer for assistance

Protecting this investment begins with insurance where many questions arise.

Here are the answers to the 10 MOST FREQUENTLY ASKED QUESTIONS
ABOUT HOMEOWNER’S NSURANCE.
1. HOW MUCH TO THE PURCHASE DO YOU NEED TO INSURE?
Land does not need to be insured! (except for liability) but the full replacement value of the dwelling should be covered in ease of a total loss: i.e. fire, wind, etc… An insurance agent, builder, or an appraiser can assist in doing this.

2. DOES CONSTRUCTION MAKE A DIFFERENCE IN COST?
Yes. Masonry/brick construction is

generally a little higher in building cost than Frame but is usually a little cheaper to insure. Some other items that add to Replacement cost is fireplaces, central air, finished basement, type and quality of Construction.

3. DO DIFFERENT AREAS MAKE A DIFFERENCE IN INSURANCE COSTS?
Yes. The fire department (full time or volunteer) can make a difference as does the proximity to a fire hydrant. Some other factors insurance companies consider are High loss areas such as wind, hail, tornado, etc. Choosing a higher deductible can help keep rates lower.

4. ARE CONDOS & TOWNHOUSES DIFFERENT?
Sometimes. If there is a “blanket” insurance policy on the building then the buyer need only obtain contents insurance which includes personal liability and loss of usc.

If there is no blanket then a regular homeowner’s policy is recommended.

5. WHAT IS NEEDED AT CLOSING FOR INURANCE?
An evidence of insurance with an invoice if the mortgage company is going to collect the premium at closing or a certificate of insurance showing paid if the buyer has paid in advance. I’hc insurance agent will take care of this for the buyer.

6. WHAT DO INSURANCE COMPANIES LOOK FOR IN INSURABILITY?
Many factors arc considered in underwriting a residential risk. Primary considerations are condition and age of the structure, wiring and plumbing and liability hazards.

The initial inspection is done by the insurance agent but may be followed up by a separate roofing inspector. Neither of these should preclude the buyer from hiring a pre purchase home inspection company as the two arc somewhat different.

7. DOES THE BUYER NEED FLOOD INSURANCE?
If the house is in a high flood zone the mortgage company will require flood insurance. If not, the buyer can opt to purchase a policy for their own comfort.

The insurance agent can determine the cost once the flood zone has been established.

8. ARE DWELLING, CONTENTS, AND LIABILITY COVERAGES PURCHASED SEPARATELY?
Generally not. The homeowner’s policy is a package that covers all the above plus detached structures, loss of use, and many other coverages and options.
Even on townhouse and condominium owner policies some dwelling coverage is automatic with the policy and depending on the type of “blanket” insurance more may need to be purchased.

9. IS THE HOME BUYER REQUIRED TO PURCHASE MORTGAGE
INSURANCE?
There are certain types of government backed mortgages that require “mortgage” insurance to be purchased. The mortgage company or mortgage broker will be able to advise the buyer on this. Mortgage “life” insurance is not required except in certain circumstances. However, many conscientious home buyers do purchase this life insurance to protect their familics in case of prematurc death.

10. SHOULD THE AGENT MAKE PERSONAL CONTACT WITH THE  HOME BUYER?
 Absolutely. While the Realtor and/or the Mortgage Company can provide the agent with many needed details each policy needs to be tailored to the individual homeowner. There are over 20 options and endorsements that can be added for specific needs and it is very important to explain the limits and exclusions.

Notary Public information

What is a Notary Public?
A Notary Public is a public servant appointedby the state government to witness the signing of important documents and administer oaths. This responsible person is issued a certificate of authority that states the expiration date of the commission.

Why are documents notarized?
Documents are notarized to deter fraud and to ensure they are properly executed. An impartial witness (the Notary) identifies signers to screen out impostors and to make sure they have entered into agreements knowingly and willingly.

How does a Notary identify a signer?
Generally, the Notary will ask to see a current identification document or card with a photograph, physical description and signature. A driver’s license, military ID or passport will usually be acceptable. Another way to identify signers is through personal knowledge, meaning the Notary has had numerous interactions with the signer over a long period of time that eliminates any doubt that signer has the identity they claim,

Is notarization required by law?
For many documents, yes. Certain affidavits, deeds and powers of attorney may not be legally binding unless they are properly notarized.

With other documents, no. Private entities.~and individuals may require notarization to strengthen the document and to protect it from fraud.

Does notarization make a document “true” or “legal”?
No. A notarization typically means the signer acknowledged to the Notary that he or she signed the document or vouched udder oath or affirmation that the contents of the document were true.

May a Notary give legal advice or prepare legal documents?
Absolutely not. A Notary is forbidden from preparing legal documents or acting as a legal advisor unless he or she is also an attorney. yiolators can be prosecuted for the unauthorized practice of law, so a Notary cannot answer legal questions or provide advice about a particular document.

May a Notary prepare or notarize immigration papers?
Only a few immigration forms must be notarized, such as the Affidavit of Support (1-134, 1-864), but the U.S. Immigration and Naturalization Service (INS) regulations state that no one may prepare or file another person’s immigration papers unless he or she is an attorney or a U.S. Departynent of Justice-approved “accredited representative.” Notaries may provide clerical, secretarial or translating assistance with INS forms as long as they do not provide legal advice, and then may notarize~these forms.

is a Notary the same at a Latin Notario Pubilco?
No. In Latin countries, the Notario Publico is a high-ranking official with considerable legal skills and training. Unlike the U.S. Notary, the Notario Publico drafts documents, provides legal advice, settles disputes and archives documents.:

Can a Notary refàse to Notarize?
A Notary can refuse to Notarize if they are uncertain of a signer’s identity, willingness, general competence, or has cause to suspect fraud. Notaries may not refuse service on the basis of race, religion, nationality, lifestyle, or because the person is not a client or customer.

Where can one report unethical or unprofessional Notaries?
Any wrongdoing or illegal activity should be reported to law enforcement and the appropriate Notary-regulating state official (typically the secretary of state, governor, lieutenant governor or attorney general).

In formation from the National Notary Association. www.nationalnotary.org

Every year our judicial system is filled with million dollar mold liability lawsuits. And there is a good reason why. Mold is sometimes hard to locate due to the nature of which it grows and reproduces. A modem home is a perfect breading ground for mold if the right conditions exist. Due to all the closed wall cavities, organic material, trapped moisture, plumbing and dark areas found in a typical residential dwelling, it should not be a surprise that mold might be present.

Mold produce tiny spores to reproduce. The spores waft through the indoor and outdoor air continually. When mold spores land on a damp area in side a home, they begin growing and digesting whatever they are growing on in order to survive. Organic material is key for mold to grow. There are molds that grow on wood, paper, carpet and foods.

When excessive moisture or water accumulates indoors, mold will often
occur. The is no practical way to eliminate all mold and its spores in the indoor environment: the key is to control mold is to control moisture. It is important to dry waterdamaged areas within 24 48 hours to prevent mold growth. Mold spores go dormant when the source disappears. If moisture or water is reintroduced, mold will start to grow again. The organic material of the effected area must be replaced i.e. wood framing, drywall, sub flooring, wall paper ect. not just cleaned. If the material is not replaced, mold could start to grow again in the same area.

You may suspect hidden mold if a building smells moldy, but you cannot see the source, or if you know there has been water damage and residents are reporting health problems. Molds may be hidden in places such as the backside of dry wall or wallpaper. Other possible locations of hidden mold include areas inside walls around pipes or inside ductwork.

Investigating hidden mold problems may be difficult and will require caution when the investigation involves disturbing potential sites of mold growth. For example, removal of wallpaper can lead to a massive release of spores if there is mold growing on the underside of the paper. If you believe that you may have hidden mold problems, consider hiring an experienced professional like an Industrial hygienist.

Health effects and symptoms associated with mold exposure should be paid close attention to. When mold problems occur and mold growth results, building occupants may begin to report odors and a variety of health problems. Headaches, breathing difficulties, skin irritation, allergic reactions, and aggravation of asthma. All of these symptoms could potentially be associated with mold exposure. All molds have the potential to cause health effects. Molds produce allergens, irritants and toxins that cause reactions in humans. The types and severity of symptoms depend in part, on four things: types of mold present, the extent of an individual’s exposure, the ages of the individuals and their existing sensitivities or allergies.

Most nationally recognized insurance companies will not cover a mold claim over $5,000. Currently there are no state or federal licensed requirements on how to remove or mitigate the effected areas, so be careful when choosing a contractor to mitigate mold for your client.

IDENDITY THEFT – Don’t Be The Next Victim

                      Brought to you by Active Properties-

Following are tips that can protect you:

1. Do not sign the back of your credit cards with your signature.   Instead, insert:    ”PHOTO ID REQUIRED “ 
2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the “For” line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels will not have access to the check .                                                                                                                                     
3. Put your work phone number on your checks instead of your home phone.  If you have a PO Box, use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks (well, DUH! I guess we know this point)  You can add a SS# only if it is necessary. 
4. Copy the contents of your wallet, making sure you copy both sides of each license, credit card, etc. You will then know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place to easily get hold of when needed. Carry a photocopy of your passport when traveling either here or abroad. There are plenty of stories, beyond mine, of the horror stories about fraud that is committed when someone steals a name, address, Social Security number, or credit card/s number.   
5. We have been told one should cancel our credit cards immediately when a credit card has been compromised. But the key is having the toll free numbers and your card bank numbers handy so you know whom to call. Again, keep these contact and phone numbers where you can find them.  

File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation  (if there ever is one). 

MOST IMPORTANT 
7.   Call the 3 national credit reporting organizations immediately* to place a fraud alert on your name and also call the Social Security fraud line number. Do this step when advised by a bank that has called to tell you an application for credit was made over the Internet in your name or if an address change has been requested. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit. 
  
Finally, here are the numbers you will need to contact should someone be accessing you personal or credit card information, or your wallet has been stolen:      

(* also, when I contacted one bureau, the automated online process forwarded the information to the other (2) bureaus).

1.) Equifax:  800-525-6285

2.) Experian (formerly TRW):  888-397-3742  

3.) Trans Union:  800-6807289 

4.) Social Security Administration (fraud line): 800-269-0271

Brought to you by Active Properties

VACATION ALL I EVER WANTED… But will your home and your sensitive information be safe while you’re away? Now you can make sure they are! 

For example, with the quick mail tip below, you can ensure your bank statements and bills don’t end up in the wrong hands! You can also protect your home and everything in it…and avoiding falling prey to a hotel credit card scam by reading the article below. 

WAIT A MINUTE MISTER POSTMAN 

Think about what lands in your mailbox…bank statements, credit card bills, and maybe even DVDs. Where do they all go when you’re gone? If you’ve been asking a nosy neighbor to pick up your mail–or worse, letting your mail pile up in the box–there’s a better option and it’s easier than ever! 

Whether you’re on vacation or an unexpected business trip, you can rest easy knowing your mail is safe and sound by asking the Post Office to suspend delivery while you’re gone. They’ll hold your mail from 3 to 30 days, and then resume normal delivery on the date you specify. It’s convenient, easy to do, and most of all SAFE!

Make It Easier with the Internet

Now you can notify the Post Office to hold your mail in two minutes flat without even leaving your house. Just hit this link, and you can quickly fill out the form online: USPS Mail Hold. If your area isn’t served online, simply call 1-800-ASK-USPS (1-800-275-8777) and a representative can assist you. Then, have the time of your life…without worrying about your mail while you’re gone!

NOT TO BE AN ALARMIST.…..

But did you know that home security systems may actually attract burglars? Shocking, but true.

Each year, Americans spend more than $18 Billion on professional alarm systems. Unfortunately, according to security consultant Walter Shaw, some of those systems may actually be attracting burglars. Shaw, a former burglar, contends that when thieves see a house with a security system sign on it, they know it typically means that the house actually has something of value inside…which makes it a better target for them to consider breaking into.

In addition, Shaw notes that determined thieves can actually use those security system signs to their advantage. First, if the sign displays the name of the alarm system company, a thief may be able to use that information to research the system and figure out how to bypass it. Second, thieves may decide to test the system. By tripping the alarm on purpose, burglars can gain a better idea of how long they’ll have to get in and get out before the police arrive!

So do alarm systems help at all?

The answer, thankfully, is YES! A recent study indicated that alarm systems are still the single most effective way to reduce the risk of burglary. Interestingly, some preventive measures such as deadbolts do little to dissuade burglars, since these measures cannot be seen until a burglar has already chosen a house…at which point they tend to pursue it and find a way in, regardless of the deadbolts. 

Here’s how to best protect your home.

First, make sure any alarm signs posted on or around your home are generic–without the name of the security company. In addition, you might want to consider adding security cameras-or even fake cameras-around your entrances and windows. No thief wants to be caught on tape…even if they’re wearing a mask. Also, make sure that bushes and branches are cleared away from windows and entrances. 

For more help with your house’s security, you should seek advice from a professional security provider. Be sure to tell them about your specific concerns and ask how to best address them.      

HOW SAFE IS YOUR CREDIT CARD WHILE YOU’RE IN YOUR HOTEL ROOM?

Most would answer “very safe” because the card is right there with you, either tucked securely in a wallet or locked in the safe. But beware…it might not be as protected as you think. There’s a scam lurking about hotels, and it’s not coming from hotel employees–it’s from people outside the hotel altogether.

There’s how it works:

The phone in your room rings and the person on the other end identifies themselves as someone from the front desk. They say there is a problem with your credit card and the number needs to be verified. You cooperatively pass along the information, and don’t think about it again until the monthly statement arrives with a slew of charges that are not yours.

Suddenly you realize while on vacation or caught up in an important business trip, you were scammed!

So how do these people get to your room if they don’t know your name? They simply call the hotel and randomly ask for room numbers until they can get through to a person in the room, or they ask for a hotel guest with a common last name like “Smith” until the connection is made. One way or another, they get through and scam hotel guests.

If a call is ever made to your hotel room requesting credit card information, taking just one precautionary step will confirm whether or not the call is a legitimate one. Simply ask for the hotel employee’s name and tell them you will come down to the front desk and provide the credit card information. Asking for the name may cause the scammer to panic and hang up–but even if a name is given, take the time to go to the front desk and confirm the call.

According to the American Hotel and Lodging Association, hotels never ask for credit card information over the phone. So, chances are good that receiving a call like this is a scam, and taking the time to walk down to the front desk will confirm whether there really is a problem with your card.

Be on guard for anyone asking for your credit card number over the phone, and ensure that you can enjoy your vacation or focus on that business trip with the peace of mind that you are not getting scammed.

Information brought to you by:  Active Properties

The facts about Solar Energy (Photovoltaics) in Colorado 

Colorado is experiencing a boom in the solar energy field not seen since the late 70’s and 80’s. Whether it’s due to a fear of global warming, diminishing natural resources, Mid-East terrorism or possibly just the desire to own a renewable and reliable energy source, solar is taking off.

The photovoltaic (PV) effect is the process by which a semi conductor diode converts visible light into an electrical current (DC). I won’t go into the history or all the technical aspects of PV but trust me when I say the concept isn’t new and the technology is proven. Simply put, the PV panels go on the roof of a residence or building. They can even be mounted as a ground mount near the building. The panels generally face south but can also be pointed west or east with some drop in performance. The DC current from the panels is routed to an inverter that converts the electricity to AC. In a typical grid connect system, the power is used by the homeowner, but if the PV is producing an excess of power at any instant, it literally spins the meter backwards and Xcel provides it to another customer, giving you a 1:1 credit for the that excess. If the system does not produce enough energy to meet the needs of the building, Xcel supplies the additional power needed – this process is seamless and automatic. And better yet, PV cells are guaranteed to produce energy for 25 years but are actually lasting upwards of 30-40 years. And if you are curious how much energy it takes to produce a PV module, it is only about 2 years worth of the energy to produce the module.

How much energy do you need? It varies but an average single family home in Colorado consumes about 8,000 KWH (kilowatt hours) per year. To achieve “net-zero” (you make as much power as you use) this average home would need roughly a 5.5kw system. This system would require about 500 sq ft of roof space.

Now to the economics of PV.

Colorado passed a bill, Colorado’s Renewable Portfolio Standard (RPS) aka Amendment 37, that requires investor-owned utility companies to have 20% of their retail electricity sales come from renewable energy sources by 2020.  To accomplish that goal, Xcel offers significant incentives (about 55% of the installed cost) on the purchase of PV systems for residential or commercial use. In addition to these generous incentives by Xcel, the Federal Government allows residential buyers a 30% tax credit with a $2,000 cap. Commercial customers also get the 30% tax credit but there is no $2,000 cap. Additionally, commercial customers are allowed an accelerated depreciation on the purchase price.

It is estimated that the increase in the home value after installing PV is roughly 20 times the first year energy savings. So from a purely economic viewpoint, one would break even immediately upon installing a system. Long term, PV customers have inflation proof, clean energy for years to come.   

What does it all cost?

The incentives to go solar in 2008 are excellent but won’t last forever. The Federal Tax credit is due to expire at the end of the year. Although the Xcel credits do not have a specific expiration date you might want to consider getting one while they last.

A typical system sized to do about 65-75% of an average residential load would be about 4kw. After all the rebates and tax benefits are applied the net cost to a homeowner would be about $11,000.  Commercial systems are even more exciting when it comes to pricing. When applying Xcel incentives, Federal Tax Credits and Accelerated Depreciation, a commercial building owner will realize a very attractive return on investment.

What does this mean for you?

Reduced carbon footprint – a 5kw system will reduce carbon output by about 5 tons per year.

Locked-in energy costs at today’s rates. Some estimates show energy increasing at 5% – 10% per year.

Excellent long-term investment.

Increased home value. 

How does it look?                                 

Most of us love the look of solar panels on the roof. These aren’t the same panels you remember from the 80’s with racks that look unsightly. Today’s panels are streamlined and lay flush to the roof. And they make a statement that says you are doing your part to save energy and the environment. Oh, and if you’re worried about your HOA, don’t be. Current Colorado law states that an HOA cannot deny you the right to install a solar system on your roof.