​One of my clients hit a snag thanks to BOULDER COUNTY.

He’s considering moving to an assisted living facility and wanted to see if they could rent their home furnished as an AirbNb.

Nope.

You see, they have to live in their home 6 months out of the year for Boulder County to allow it.

I called my friend, Dan Guenther admin. of the Boulder County Co-Living & Rent-by-Room Support Group page.

I've shared the fantastic informantion he gave to me below: 

Short-term rentals can indeed be highly lucrative, but with increasing city regulations, investors are often left searching for viable alternatives. Many of my clients frequently ask about other strategies to optimize their ROI. Exploring these often-overlooked exit strategies can open new avenues for profitability and long-term success.

Can't Run a Short-Term Rental? No Problem! Here Are 5 Powerful Alternatives for Investors:
If city regulations are putting a halt to your short-term rental plans, don’t worry—there are still plenty of ways to maximize your investment! Here are my top five alternative strategies to maximize returns.

Rent by the Room:

• Benefits: Higher total rent, lower vacancy risk, and a steady income stream. Perfect for markets with a strong demand for affordable housing options, like students and young professionals.
Medium-Term Furnished Rental (30+ days):

• Benefits: Ideal for traveling professionals, remote workers, or families in transition. Enjoy less turnover and less wear-and-tear on your property, while still earning more than traditional long-term leases (sometimes up to 2x traditional long term rents)

Have a Tenant Be the STR Operator:

• Benefits: Stay within legal bounds while still reaping STR-level profits. Your tenant handles the work, and you enjoy a share of the revenue without the headaches of day-to-day operations. This one does not work in every market but if it does, then you can take full advantage of prime STR markets without the property being your primary residence.

Sober Living Home:

• Benefits: Steady demand and potential for higher rent. This option also allows you to contribute to a meaningful cause by providing safe, supportive housing for individuals in recovery.

Group Home:

• Benefits: Consistent government or agency-backed income, with the chance to create a supportive environment for those in need. This option often comes with fewer vacancy issues and long-term stability.
Don’t let regulations limit your potential—there’s always a way to keep your investment thriving!
​
If you or any of your investor friends are curious about any of these options and want to dig a bit deeper into the pros/cons of each model, let me know and I can connect you with one of my conections! 

I'm currently working with a client who owns a very successful and fast-paced remodeling business. Unfortunately, he worked with another agent prior to working with me and was never guided on how to prepare for an insurance audit.

We are now helping him to navigate through total chaos.

If you're a contractor and you've experienced an audit, you know how crazy they can be. By applying three simple tips, your audit can be made much easier.

Tip #1: Divide and Conquer

Set up two separate bank accounts, one for payroll and sub costs and the second, for all other items: materials, marketing, office supplies, etc. It is also crucial that you do not mix your business expenses with your personal expenses. THE DO NOT MIX!

Tip #2: Gather Certificates

Make sure you are collecting certificates of insurance from every subcontractor you work with and keep those certificates filed safely away in case they are needed for an audit or claim. You'll want to make sure your subs' insurance limits are the same as yours-not less. To make sure you are as protected as possible, require that your subs add your company as an additional insured on their certificate. A little FYI, there are special endorsements you can require your subs to add which will add an additional layer of protection for YOU.

Feel free to reach out to us if you'd like to know what these endorsements are or if you would like a sample certificate to use for refrence.

Tip #3: Work With a Bookkeeper

You're busy.

I know.

You're watching your expenses.

I get it.

However, you may be as surprised as I was to find out how inexpensive working with a bookkeeper can be. If you're small, it can cost as little as $50 a month - depending on who you're working with. Working with a bookkeeper allows you to focus on bringing in the money instead of managing it and better ensures you're going to have a really well done profit and loss statement (which your auditor will request.)

I have several bookkeepers whom I have personally trained. Should you decide to work with one of them, your audit becomes incredibly easy. They send me the information I will need, I forward it to your auditor, and you are finished.

It can be as easy as that.

Had my client known these tips and applied them, he would have been saved dozens of hours searching for check stubs, certificates, and bank records.

​If you'd like to know more, receive recommendations for bookkeepers who are familiar with the insurance auditing process, or would like to connect with us please reach out.

I'm happy to help.

XOXO
Your favorite insurance lady, 
​Shauna 

You've put in a lot of time, effort, and money into getting your next project. Not being able to start on time due to a lack of insurance is not what you want to have happen!

Here are three key steps to help you secure the right insurance coverage promptly:

1. Provide Lender's Information to Your Insurance Agent Right Away: This will help make sure your policy aligns with the lender's requirements and is tailored to the specifics of your fix and flip project. Communication between your lender and insurance agent can help streamline the process and avoid any last-minute issues.
2. Provide Detailed Information About the Property: Be prepared with comprehensive details about the property, especially if it is an older structure. Underwriters may scrutinize older properties more closely. Provide information about the roof's age and material it is made of, as well as the last updates to electrical, heating, and plumbing systems. This information helps the underwriters assess the risk and determine appropriate coverage.
3. Research and Share Your Builder's Information: Know your builder's background and track record. Provide details such as:

 

• The builder's website and/or portfolio of past projects.
• The number of projects they undertake annually.
• Any insurance claims against the builder in the last 10 years.
• Sharing this information with your insurance agent allows underwriters to evaluate the reliability of the builder and the associated risks. A reputable builder with a positive track record can positively impact your insurance coverage.

Remember, proactive communication and thorough documentation are key to expediting the insurance process and ensuring you have adequate coverage for your fix and flip project.

To know more of what might be asked of you, feel free to check out our online form here or call or text us at: 720-389-7651.

​When it comes to commercial property insurance, coinsurance plays a crucial role in how expenses are shared between you, as the property owner, and your insurance company. Here's how coinsurance works in the context of commercial property insurance and how it can affect your business:

1. Deductible: Similar to other insurance types, your commercial property insurance policy will have a deductible. This is the initial amount you must pay before your insurance coverage kicks in.
2. Coinsurance Percentage: After you've met your deductible, coinsurance comes into play. It's expressed as a percentage, typically 80%, 90%, or 100% to value, and represents the portion of the covered property damage expenses you are contracted into paying premium for. Ex: your building is valued at $200,000 and you have agreed to 80% coinsurance, you need to be paying premium for $160,000. Making sure your building is valued correctly is crucial!
3. Covered Losses: Coinsurance applies to the losses or damages covered by your commercial property insurance policy. This can include damages caused by fires, storms, theft, vandalism, or other covered perils.
4. Out-of-Pocket Costs: Your out-of-pocket costs depend on the total amount of covered property damage expenses. If your coinsurance percentage is, for example, 20%, you will pay 20% of the costs, and your insurance company will cover the remaining 80%, up to the policy limit should there be a total loss.
5. Policy Limits: Your policy will have specific coverage limits. It's crucial to understand these limits because once the covered expenses exceed the policy limit, you may be responsible for additional costs incurring what is called a Coinsurance Penalty. 
6. Risk Management: Coinsurance is a factor to consider when managing the risks associated with your commercial property. You should assess the potential costs of property damage and ensure that your policy's coinsurance percentage aligns with your risk tolerance and budget. In plain English, you better make sure you have enough in savings to pay for the percentage and the deductible you have agreed to pay just in case there is a loss. 
7. Premiums: Commercial property insurance premiums are influenced by various factors, including the coinsurance percentage. Policies with higher coinsurance percentages (i.e. 80%) often have lower premiums, while lower coinsurance percentages (100%) may result in higher premiums. Balancing these factors is essential to find the right coverage for your business at an affordable cost.

​In summary, coinsurance in commercial property insurance determines how property damage expenses are shared between you and your insurer. Understanding your coinsurance percentage, policy limits, and how they affect your out-of-pocket costs is essential for making informed decisions about your commercial property insurance coverage, managing risks, and budgeting for potential property damage events.

by Josalyn Tippets

It feels like everything is increasing in price and the pinch is beginning to hurt. Many people have asked me why insurance premiums have shot up aggressively this year. Below you will find a short break down of why costs are on the rise:

1. Real Costs of Accidents and Disasters: When accidents happen or natural disasters strike, insurance companies step in to help you get back on your feet. But the reality is, these incidents often lead to costly repairs and medical bills. With technology becoming more advanced, fixing a car or home has become pricier, and insurers have to adjust their prices to ensure they can cover these expenses.
2. Mother Nature's Impact: Think about those hurricanes, wildfires, and floods that have been making headlines. They're not just stories – they lead to real damage and real claims. Insurance companies are there to assist you during these tough times, but the increasing frequency and severity of these events mean more payouts, and that's a significant factor behind rising premiums.
3. Keeping Up with Inflation: Just like how your grocery bill might be higher this year, the cost of repairing your car or home has also gone up. This is due to inflation, which affects everything around us. Insurance companies need to adapt to these rising costs, so they adjust their rates accordingly.
4. Tech Comes at a Price: Sure, those fancy car sensors and smart home devices are cool, but they can be expensive to fix when things go wrong. Insurers need to factor in the higher costs of repairing technologically advanced vehicles and homes, which can impact your insurance rates.
5. Everyday Distractions: Our lives have become busier, and that's led to more accidents caused by distractions like phones. Unfortunately, this has resulted in a higher number of claims for insurers to handle. When they pay out more claims, it often leads to adjustments in your premiums.
6. Standing Strong in Legal Battles: Legal changes and the rising cost of legal proceedings can also impact your insurance rates. If more people are filing lawsuits or if the legal landscape shifts, insurers might need to adjust their rates to make sure they can cover the potential expenses.
7. Facing Fraud and Challenges: Insurance companies also face challenges like fraud and complicated legal battles, which can increase their costs. To continue providing you with reliable coverage, they may need to increase rates to handle these unexpected hurdles.
8. A World of Influence: Sometimes, global events like supply chain disruptions or pandemics can indirectly affect your insurance costs. Just like your life is interconnected, so is the insurance industry, and global factors can play a role in rate adjustments.

In the end, rising insurance prices are a result of a mix of real-world factors that impact insurers' ability to provide the support you need. While it's frustrating to see those rates increase, remember that insurance is there to protect you through life's twists and turns and the cost of a loss is spread out across the masses instead of being your responsibility alone.

Life insurance is the most personal type of insurance you can have in today’s world.

But there seems to be a lot of confusion about it. Every consumer has different priorities and feelings. Add to that the fact that life insurance can be used for a variety of financial goals and needs, and you have a recipe for befuddlement.

When it comes to life insurance, most agree that if you have children, you should probably have it. There is no question. But what if you don’t have children? Do you need to purchase life insurance? Here’s why it may still be important, even if you don’t have kids now (or don’t plan to):

Many households need a dual income to survive.

Since women began entering the workforce en masse in 1960, household incomes have been on the rise. Many households have now adopted a lifestyle that depends on a dual income to maintain itself. If you’re in this situation, there might be some consequences of your life insurance decisions.

If something happened to you or your spouse, would the survivor still earn enough money to maintain their lifestyle? If the answer is no, consider how a life insurance policy might help.

Mortgage debt is big debt.

Mortgage debt in the United States is big – bigger than credit card or student loan debt. Still, mortgage debt is “healthy” debt assuming the growing equity in a home makes it worthwhile.

But mortgage debt can become a problem if a household’s income takes a hit. Life insurance can protect families from this risk by helping to pay off a mortgage, should something happen to you or your spouse. Either a term life policy or a special mortgage life policy can be used to pay off a mortgage.

Mortgage life insurance can be a nice layer of protection for couples that don’t have children but do have a mortgage.

Life insurance can be used as a savings tool.

Many life insurance policies offer a cash value. This means that certain policies can be cashed in whether or not a death has occurred. In this way, a life insurance policy can act as a savings tool.

Couples without children can pay into their policy in the form of the premiums, and then cash it out for a retirement dream: a new home, a hobby business, or an extended vacation. Using life insurance as a savings tool can offer tax benefits, a guaranteed savings method for the “savings challenged”, and a creative way to finance a dream. In short, it’s a savvy use of life insurance for couples who don’t have kids.

Funeral expenses can wipe out an emergency fund.

A life insurance policy can help cover funeral expenses for you or your spouse. This is one of the most common uses of life insurance. The average funeral today can cost between $7,000 and $10,000. That’s enough to wipe out an emergency fund, or seriously deplete it.

Having a life insurance policy in place can help cover expenses if you or your spouse were to pass away unexpectedly, so you can leave your fund for the day-to-day difficulties intact.
​
Whether you have children or not, a sudden illness or loss of a breadwinner can have lasting consequences for the loved ones you leave behind. Taking advantage of a well-tailored life insurance policy to shield them from an unnecessary financial burden if something were to happen is one of the best gifts you can give.

​ The average cost of a wedding in the U.S. is $30,000 - crazy high, in my opinion, that amount might be enough for a down payment on a first home!

Having cold feet about shelling out that much cash for one day’s festivities? Or even worse, going into debt to pay for it? Here are a few ideas on how you can make your wedding day a special day to remember while still saving some of that money for other things.

Invite Close Friends and Family
Many soon-to-be newlyweds dream of a massive wedding with hundreds of people in attendance to honor their big day. But at some point during any large wedding, the bride or the groom – or maybe both – look around the well-dressed guests and ask themselves, “Who are all of these people, anyway?”

​You can cut the cost of your wedding dramatically by simply trimming the guest list to a more manageable size. Ask yourself, “Do I really need to invite that kid who used to live next door to our family when I was 6 years old?” Small weddings are a growing trend, with many couples choosing to limit the guest list to just close friends and immediate family. That doesn’t mean you have to have your wedding in the backyard while the neighbor’s dog barks during your vows – although you certainly can. It just means fewer people to provide refreshments for and perhaps a less palatial venue to rent.

Budget According to Priorities
Your wedding is special and you want everything to be perfect. You’ve dreamed of this day your entire life, right? However, by prioritizing your wish list, there’s a better chance to get exactly what you want for certain parts of your wedding, by choosing less expensive – but still acceptable – options for the things that may not matter to you so much. If it’s all about the reception party atmosphere for you, try putting more of your budget toward entertainment and decorations and less toward the food. Maybe you don’t really need a seven-course gourmet dinner with full service when a selection of simpler, buffet-style dishes provided by your favorite restaurant will do. My little sister had a soup and charcuterie spread AND she asked several family members to bring a crock pot full of their favorite soup. He bill was tiny compared to other weddings I've been to.

​Last month, I spent three day in Kansas City learning about retirement plans.

I know this doesn't create a lot of "wow" factor for most, but I felt honored as I sat the feet of some of the insurance industry's greatest leaders. Ron Essary (pictured above) is one of the masterminds of annuities. He is sought after by insurance carriers to create retirement plans that will provide bonuses, life-time income, safety from the market, doubling factors (should the client get sick), etc. He is often referred to as the mad scientist of the annuity world and I feel a little smarter for being taught by him.

The good news for you, is that I came back with information that YOU should know about. The American retirement atmosphere has had some significant changes. I've listed a few below.

SECURE 2.0 legislation, a follow up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, was passed as part of an omnibus appropriations bill on Dec. 29, 2022. This new wave of retirement reform is designed to help more Americans reach retirement with more savings. The following summary can help you get up to speed and modify plans to better secure your future.

RMD Age Raised
The age for taking required minimum distributions (RMDs) increased from 72 to 73 on Jan. 1, 2023. Anyone who has already begun taking RMDs from 401(k) plans or traditional IRAs must continue doing so. The RMD age will rise to 75 in 2033.

Emergency Withdrawal Opportunities
New rules allow one annual distribution of up to $1,000 from a retirement account without penalty. Larger withdrawals may be made for terminal illness, natural disasters, long-term care or other specific financial emergencies.

Catch-Up Contributions Increased
Clients aged 60-63 can add the greater of $10,000 ($5,000 for SIMPLE Plans) or 150% of the current regular catch-up contribution in 2025. The increased amounts are indexed for inflation after 2025.

529 Plan Changes
Effective in 2024, beneficiaries can roll over up to $35,000 from a 529 plan to their Roth IRA, subject to Roth IRA annual contribution limits assuming the 529 account has been open for 15+ years.

“Rothification” Trends
In 2024, Roth assets in an employer-sponsored plan will be exempt from lifetime RMDs. SEP and SIMPLE plans can allow Roth contributions beginning in 2023.

Student Loan Match
Starting in 2024, employers will be able to count student loan payments as plan contributions eligible for the employer match in a retirement account.

Expanded Auto-Enrollment
Beginning in 2025, employers are required to auto-enroll eligible employees to the new 401(k) or 403(b) plans. Long-term, part-time workers will also be allowed to participate in such employer plans.

Front Range Insurance Solutions offers a variety of safe-money retirement plans. Please reach out if you'd like to know more.