End of year or New Year's Eve Party Plans?

Hey everyone, amazingly enough another year is coming to a close and it is time to finalize the plans for either this weekend or Monday night. (Or for some, the party through the entire thing!) These times are always great for celebration with family and friends and can typically be completely enjoyable without incident or tragedy with a little thought and preparation.

First of all, be smart with who you are serving alcohol; I know that many times parents feel it is okay to serve alcohol to minors in their own home but my personal advice is this isn't a great practice, not considering the legal aspect but also from an insurance aspect as if an incident may occur due to the illegal service, most, if not all homeowners policies exclude acts that are performed illegally that result in liability claims.

Secondly, be smart with the amount of alcohol served! If you are allowing someone to consume more than their fair share of alcohol, it may cause problems with their attitude first off, but then it may create liability issues as well! If someone does happen to drink too much at your home, make sure to help arrange a designated driver, taxi or even let them spend the night.

This time of  year is meant to celebrate the past and be excited about the future, make the right choices so that it is purely a celebration!

From the staff at Advantage 1 Insurance, have a SAFE and Happy New Year's Eve and get ready for an exciting 2013!

Winter driving troubles! (Especially around the holidays!)

Last weekend South Dakota and Minnesota experienced a snow storm that reminded me of ones from my childhood! Lots of snow and wind and many nearly impassable roads.
Now, we all know the dangers of driving during these storms, but what about afterwards? This week has given us mild temps to induce slushy roads and large gravel and sand covered snow piles along roadways and in the middle of intersections, along with people driving the speed limit or greater to get all their holiday errands done. This creates a large number of a really ugly color tan vehicles with very minimal visibility driving at high speeds with visions of sugar plums and credit card bills in their head! It is a disaster waiting to happen! So please take extra care of keeping your windows clean and extra caution watching out for others and their bad habits!
Stay safe this holiday season and arrive at your destinations safely!

Are we paying too much for insurance? Part 2

So, last week I started with the discussion of the price of homeowner's insurance and it's increases in the last couple of years. This week I wanted to see if I could help adjust perspective even more and possibly take a new approach to where the trouble may be.

In 1970 the median income was $7,630 while a new car was $3,900, the average cost of a new home was $23,400 and the average cost to insure that home was $104. Meaning the ratio of income was 32.6% of the average new home value and the insurance expense to insure that home was 1.36% of the annual income. While the ratio most related to our focus of discussion, insurance to home cost was .45%.

In 1980, the numbers changed to $16,523, $7,210, $64,600, and $179 respectively. Bringing the ratio of income to home cost down to 25.6%, the insurance expense to income to 1.08% and the insurance to home cost ratio to .278%. This 10 year gap has created basically a double in income and care value but a triple in home price and only a 75% increase in insuring that home. Now, I understand that as time goes on and the underwriting process and the law of large numbers comes in to play, insurance can get better about predicting the process and actuaries are able to set a most reasonable rate for the insurance, but if the gap of building a home and the gap to protect the home in case of needing to be rebuilt gets too wide, eventually it will cause trouble somewhere.

Skip ahead 30 years, 2010, incomes are $48,340, cars are $29,217, homes are $221,800 and insurance is costing $807. This now means the ratio of income to home cost is 21.8%, insurance to income is 1.67%, and the insurance to home cost is now up to .365%, (at a time when some of the largest natural disasters have accumulated across the nation and world). So, here in lies my question, are we paying too much for insurance or is something else out of balance creating the perspective that we are paying too much for insurance?

For most people, the purchase of a home or car does not happen monthly or even yearly, and no matter how money they are being paid, the checks never seem to be enough or the increase of that check from year to year is not enough. Although, they typically see an insurance bill monthly or at least annually and the reminder that the rate changes is more visible. In reality though, looking back at these numbers, most things are on a somewhat even pace, where insurance lagged behind in cost at one time it has had to make up ground to keep companies in business for those who have their policy with them and those future needs. But, home costs have seemed to increase at a greater margin than these other expenses, and additional 200% increase in the past 40 years. And in that timeframe, lending institutions directed by the governments plans have helped people purchase those homes at a much lower income to home value ratio.

So, where is the problem truly at, who is continuing to push it forward and how can we resolve it to help keep things in balance for the future growth and development of our economy and nation? I would love to hear your thoughts and discussion on this matter!

Until next time, remember, at Advantage 1 Insurance, every policy comes with an agent!

Are we paying too much for insurance? Part 1

In the past year or so have you received your homeowners insurance renewal and felt flabbergasted by the increase? If so you are not alone and I hope to share some information I have dug up to hopefully provide a new perspective into the situation rather than just telling you that, "the insurance companies are losing money due to recent disasters and need to increase premiums." Although this may be true, many people feel the same as this lady who says,

"I don’t care what anyone says I should not have to pay more because of someone else in Florida or elsewhere! The rate we each pay should be directly tied to the services we actually USE! If we had no claim – then there is NO increase! If we have a claim then we receive an increase with a regulated max increase amount based on a sliding scale rate. The higher the claim is the higher your increase will be. The insurance industry needs a major overhaul in their premium structure. I am from Minnesota and with American Family. I started with them in Dec. 2010 for $1500 and now I just got my premium notice and it’s $1787 with no claims! I say B.S. I will start shopping and I will do it every year if I have to."

This although sounds great to the person who does not have a recent claim, to the person who has a claim it then becomes a burden because the sliding scale of premium would need to be so drastic to cover the costs of the claim that no homeowner could pay the premium resulting from turning in a claim.

The mere definition of insurance is the transferring of risk from one party (the homeowner in this case) to another (the insurance company) in exchange for payment. The insurance company utilizes the law of large numbers in their statistical analysis by pooling premium money together to minimize premium cost as much as possible so that they can pay out possible claims and in the event that the statistics create a shortfall of premium written to expenses paid for they are required by government to maintain a reserve of funds to make good on their promise of payment.

In reality, if the government didn't regulate reserve funds, and if your insurance company is paying out large sums of money to pay for others within the "pool" and they don't raise the rates to maintain funding for future claims, at the time you do have a disaster occur to your home there very well may not be funds available to make that payment to you. So, although you may not have been the benefactor of an insurance payout recently, if the rates don't increase some, there may not be money available when it is your time of need.

Now, being an independent agency, we definitely agree it is worth taking a look at your situation and making sure you are covered well for the most reasonable premium, but it's possible that the rates need to be increased to protect you in your future insurance needs. I will expand further on my research and thoughts in future postings so please share any questions or thoughts you may have so I can address those as well.... until then, remember, at Advantage 1 Insurance, every policy comes with an agent!

Do you ever have time to work "on" your business?

For years my passion has been small business and entrepreneurship. I have always admired the business owners / farmers / self-employed who have taken great risks to grow a business while supporting a family and maintaining as sane of a lifestyle as possible. For those of you that are business owners or have worked closely with one, you understand that although you may be able to take off on a Tuesday afternoon to enjoy one of your passions but then you also may get a call at 1 AM because your client / customer needs you right then and there and beings each and every customer is your livelihood, you drag yourself out of bed and take care of the issue. (Not saying that all business owners are available at 1 AM for clients, but the fact is they are always on call 24/7 working, planning and worrying about their business!)

The problem though is something I hear over and over in talking with business owners, there is never enough time to work "on" your business, as you are always working "in" your business, making sales, solving problems and just handling the daily activities. Meaning that many times business owners spend so much of their time making today happen they rarely have time to plan and lay out their future needs and goals along with ways to adapt to those needs.

Due to this, and the experiences we have had at Advantage 1 Insurance in the past two weeks: 1.making a physical move to a new office in our Sauk Centre location and all that has come with that as far as bumps in the road, 2. implementing a new client management software system so we can work more efficiently for our clients, which too has some hiccups in just the learning curve of a new way to do things internally, I have to wonder, does this saying not only mean there are difficulties planning for the future but also in taking care of the details that, although effect business, aren't direct correlations to the business itself?

For example, in our move from one location to another in Sauk Centre we moved from a building lease to a building owned, well obviously that changes the need for a multitude of things but being I think about insurance constantly it made me focus there. No longer can we just insure the property we have inside we have to make sure the building is insured as well. Yet, being involved in the transition of moving everything over, and just making sure we didn't forget anything, I was able to see how easily we could have forgotten to notify our agent about that major change.

Secondly, in regards to our software change, this time it was minimal cost for local equipment, but still very time consuming in making sure everything was / is set up properly. If this would have been a purchase of equipment / property to make our efficiency increase, it may have increased our need for insurance coverage again and with all that has been on all of our minds, it again could have easily been overlooked to make sure that happened.

What am I trying to say? To all of you, business owners, farmers and everyone out there, life is busy, and as you make changes in your life / business, they will take up your time and make it easy to forget about the details of making sure you have insurance coverage for all of your needs that have changed, so please, contact your current agent, or if you just want another opinion, give us a call, we offer a free no obligation consultation with respect to your time to help you work "on" your business!

By the way, make sure you check us out on Facebook to see pictures of the new building and also please share this and stop by on October 11, 2012 from 4-6:30 PM for our open house in Sauk Centre.

Insurance premiums can increase, but what can you do about it?

A common phone call to one of our offices is that of either a current insured or someone looking for quotes who mentions that in the past 4-5 years their homeowner's insurance premium has increased dramatically.
I could explain all the differing reasons that the rates have increased but what people really want to know is, "what can I do to keep my premium as low as possible" so I would like to pass along some tips.

Get the Coverage You Need Without Paying More Than You Should

Have you noticed that the cost of your homeowner's insurance coverage has increased significantly over the last several years? Policies that cost $325 just a couple of years ago are often two to three times that amount now, putting the squeeze on many homeowners' budgets. Here are ten ways to minimize the cost of your homeowner's insurance.

1. Raise Your Homeowner's Insurance DeductibleYour deductible is the amount of risk you agree to accept before the insurance company starts paying on a claim. With the cost of homeowner's insurance escalating, it no longer makes sense to let the insurance company assume all the risk. If you have a low deductible of $50 to $100, consider raising it to at least $500 to $1,000. You could save up to 25% on your premiums. Some companies are offering deductibles equal to 1% of the insured value of your home ($1,000 deductible on a $100,000 home). It that seems like a lot of money to pay in the event of a claim, consider this: the trends in homeowner's insurance are for insurance companies to severely penalize customers who file one or more small claims. Often the premiums are jacked way up or the policy is cancelled, and when the customer looks elsewhere for coverage, they may find it costs them three times what they were paying. We should change our perception that insurance of any type is intended to cover all of our expenses when we incur a claim. Those days are over. Think of insurance as risk sharing. How much risk are you willing to assume?
   
2. Combine Your Homeowner's Insurance and Auto Insurance PoliciesConsider buying your homeowner's and auto insurance policies from a company that offers both. Some companies offer discounts of 5 to 15% if you buy both types of coverage from them. Check around and make sure the price is lower than buying the two policies from two different companies before making this move.
   
3. Ask About Other Homeowner's Insurance DiscountsMake sure you're receiving all the discounts for which you're eligible. For example, discounts exist for smoke detectors, deadbolt locks, security or fire alarm systems, fire extinguishers in the home, etc. If you're over 55 and retired, you may qualify for an additional 10% discount.
   
4. Don't Buy Homeowners's Insurance Coverage You Don't NeedIt makes no sense to buy insurance to protect yourself against risks you are unlikely to encounter; for example, earthquake coverage in a non-earthquake zone, or a jewelry floater to your policy if you don't own expensive jewelry.
   
5. Make Your Home a Better Insurance RiskAsk your insurance agent what you can do to make your home less expensive to insure. Making changes that reduce the risk of damage in windstorms and other natural disasters is one example. Another is updating old wiring or heating systems, which may reduce your risk of fires and therefore reduce your premiums.
   
6. Know What Your Homeowner's Insurance Policy CoversYour home is your biggest investment. Make sure it's adequately protected from risks you cannot afford to cover yourself and that it covers any home improvements you've made, major purchases, and increased costs of rebuilding.
   
7. Keep Your Insurance Coverages Up To DateOnce a year, before your homeowner's insurance policy is due to renew, dig out the current policy, read through all the details, and call your insurance agent to discuss any changes in your situation that occurred during the year.
   
8. Avoid Risks That Insurers ShunInsurers are shying away from some risks. For instance, owning certain types of dogs (Rottweilers, Doberman Pinschers, Pit Bulls), can limit or void your policy. Owning a swimming pool or a trampoline can increase your cost of coverage. Read all the fine print in your policy under the "Conditions and Coverages" sections so you know all the things that are excluded from coverage. You may opt to buy additional coverage to protect yourself from certain exposures.
   
9. Improve Your Credit ScoreInsurance companies are increasingly using credit information to price insurance policies. Don't have too many open credit accounts, don't charge close to the limits on your credit cards, and pay all your bills on time to keep your credit score healthy.
   
10. Shop Around for Homeowner's InsuranceShop around for homeowner's insurance rates but keep in mind that you may be receiving a longevity discount if you've been with your current insurer for several years. Typical discounts are 5% if you've been with the company for three to five years, and 10% for six years or more. Get quotes from three agents, and take any longevity discounts with your current insurer into consideration when you compare prices. Your state insurance department may have rate comparison information available for your state. See www.consumeraction.gov/insurance.shtml Before you switch insurers, check out their financial health at www.ambest.com or www.standardandpoor.com.
 

My advice is to speak with your agent; if you don't have a local agent, give one a call and dive into your situation.

Insurance agents typically get flack for their careers but are truly professionals looking out for the best of the client, if yours isn't doing so, it is time to find one who will!

But, just to show we have a slight sense of humor too, here is some at our expense!


A woman was in the hospital after feeling very ill. The doctor says to her, “I have some bad news for you. You only have three months to live.”
“Oh that’s terrible,” the woman sighs, “what am I going do?”
The doctor replies, “Marry an insurance agent.”
“Will I live longer?” asks the woman. ”
No,” replies the doctor, “but it will SEEM longer.”

Why go independent?

It became obvious to me today at our Saint Cloud Chamber Connection meeting that many times when I introduce myself I say that I am "an independent insurance agent working for Advantage 1 Insurance" and I realized it didn't sound that great and also meant very little to most people I tell! So, what do I mean by being and independent agent and what benefit is that to you the insurance customer?  Here is a great article that I felt explained it quite well!



Some people think it doesn't really matter where they buy their insurance. But this misconception could be costing them money, service and protection. Buying insurance isn't like buying bread or milk. Insurance is an important safety net for your family, your home, your car or your business. Don't treat the purchase lightly!

There is a difference in where you buy your protection. Many people don't realize there are three sources for insurance:

1.	Captive Agents, who can sell you the insurance of only one company.
2.	Telephone Representatives, who can offer you the insurance of one company, and only on the telephone.
3.	Independent Insurance Agents, who represent an average of eight insurance companies, and research with these firms to find you the best combination of price, coverage and service.

Your Independent Insurance Agent:

• Is a licensed professional with strong customer and community ties.
• Gives you excellent service and competitive prices because your agent can access the insurance coverage from more than one company.
• Unlike other agents, is not beholden to any one company; thus, you don't need to change agencies as your insurance and service needs change.
• Assists you when you have a claim.
• Is your consultant, working with you as you determine your needs.
• Offers you a choice of insurance plans and programs.
• Is a value hunter who looks after your pocketbook in finding the best combination of price, coverage and service.
• Offers one-stop shopping for a full range of products-home, renters, auto, business, life and health.
• Can periodically review your coverage to keep up with your changing insurance needs.
• Treats you like a person, not just another number.
• Customer satisfaction is the key to an independent agent's livelihood. So, serving you is your independent agent's most-important concern.

There Is A Difference!    

At Advantage 1 Insurance, we want to be YOUR agent, so give us a call and see what WE CAN DO FOR YOU!

Why the need for renter's insurance you ask?

Seeing all of these college kids and their parents roaming the area lately scooping up all of the "necessities" before moving in to their respective apartments or dorms has me wondering about all of that money spent to fill each of those apartment complexes. How many of you who live in or know someone who lives in an apartment? I would dare to guess every one of us at least knows someone living in one, are their belongings insured? Please read on as an insurance agent tells his story of why renter's insurance is so important and give us a call if you may need it or please share this with those who may!

Why Buy a Renter's Insurance Policy?

David Thompson

Abstract On October 4, 2009, while I was visiting my parents in Vero Beach, at 4:32 a.m. my cell phone rang and the caller ID showed it to be my daughter. I knew it was not going to be a good call at that time of day. She said, “Dad, my apartment building just burned to the ground.” She lost almost everything she owned. But here is the GOOD news....

---

On October 4, 2009, while I was visiting my parents in Vero Beach, at 4:32 a.m. my cell phone rang and the caller ID showed it to be my daughter. (It was not going to be a good call at that time of day!) She said, “Dad, my apartment building just burned to the ground.” She lost everything she owned, except for a small overnight bag she had with her; she was at her boyfriend’s house for the weekend…but I don’t want to talk about that!

Fortunately, all residents (and pets) got out alive. As she hung up with me that morning, her last words were, “Thank gosh my Dad is an insurance nerd!” Just 52 days earlier, she had purchased (at her Dad’s directive) an HO-4 policy, paying right at $230 a year for $30,000 of coverage on her contents.

See the photos below which show the fire that morning, as well as the end result of her shopping experience to replace her belongings. Her HO-4 carrier paid a bit over $28,000 for this loss. Not a bad deal at all…pay $230 and get $28,000 back.

At times, I still can’t believe that my daughter had a total loss fire. (It’s always supposed to be someone else.) Fortunately, she had the proper insurance, which allowed her to put her life back in order with very minimal disruption.

Folks, it can—and does—happen to us, as well as to our customers. It’s not always someone else. Use this experience as a selling point when someone asks you, “Why do I need renter’s insurance?”

I have taken away several lessons from this event:

• It’s not always someone else who has the fire.

• Insurance does not prevent losses like this; it makes them easier to deal with.

• The $30,000 of contents coverage she had seemed like double what was needed when we bought the policy. The claim paid nearly the policy limits. Contents add up fast.

• Documentation is key; she had none. The day after her fire I took a digital camera and went through my house, taking over 180 photos of my “junk.” I have those photos stored at four different locations, over two computers, an online service, and at the house of a family member in another state.

The $230 my daughter spent on an HO-4 is a better deal than any BBQ I have ever had…and that’s a darn good deal!

Photos:

Fire department still working at 5:00 a.m.

My daughter’s bedroom…what’s left anyway!

The back of the complex.

What’s left the next day. It was a two-story building before the fire.

My daughter, 90 days later, finishing up her shopping! (Where did that sign come from?)

Independence and urgency, good or bad?

For the majority of our lives we hear things from authority figures that make us want to do things on our own and as quickly as possible. Where has this gotten us as a society? In my opinion, in trouble! It has created a society, (myself included) that craves instant gratification and an extreme desire to do things on our own.

20-30 years ago many consumers would walk into a business of something they were either needing or wanting and be able to ask for recommendations from the employees or owners of that business and learn about the products they were looking at, as well as find out the solution that would best fit their needs. They were then able to purchase the item / service with knowledge and understanding. In some instances the product wouldn't be available for immediate pickup and they would have to wait for it to be shipped before they could enjoy it, and in other instances they wouldn't have all of the money to make the purchase immediately so they would either save up, or place the item on "layaway" until they could finalize the purchase. People understood that they couldn't possibly be experts on everything and that some things took a little bit of patience to get so they would have to plan and prepare their time and finances.

Now, I am sure that some business owners or employees took advantage of this "naive" way of consumers to shop but most likely a lower percentage than what we are giving credit. So, what happened to Main Street America, quality capitalism and patience? My thoughts, distrust, negativity and a push for quickness rather than greatness!

What we really have is a chicken / egg first conundrum. I don't know for certain whether people began distrusting businesses first, creating a need for order takers rather than experts, or if employees business owners began to deliver less quality service in exchange for more speed, but the result has been a move of the pendulum to a polar opposite extreme creating personal isolation and cynicism. People now make many purchasing decisions online, with "experts" weighing in with reviews and their opinions of products / services.

Now, I have read and will continue to read many of these reviews, but I take them all with a grain of salt, as I know how easy it can be to rant and rave about something while sitting in front of the computer, whether good thoughts or bad. (Some of you may say this brings out honesty, and I partially agree, but partially I say it creates an environment of anonymity where people say things out of haste rather than logic or thought.)

What America and the world truly needs is something that has always been a struggle but can be accomplished in purchases of goods and services, a balance. Everyone should become educated buyers, do a little research and help create better customer service by asking questions about things, but don't think because you read it online that you are now an expert and can eliminate the need for any local expert's knowledge. This is especially true in industries such as finance, law, medicine and insurance. These are industries that cannot be made into commodities as an "off the shelf" set of products only based on price and speed of delivery. I know at this point you may say to yourself that of course I would say that as I am looking to profit from your business, but trust me on this, those companies spending millions of dollars across the Internet aren't just looking to help you and delivering charity. They have made decisions to move their business model to make the most profit with the least expense for them, not based on needs, but on wants of consumers.

So the question is, because you think you can avoid looking incompetent by asking any "person" questions, and receive your purchase in 15 minutes or less, does it make it a good purchase, or just an easy way out?

Let's all work together to be better, as a community of people. The Internet is intended to make a smaller world, for people to have the ability to communicate with people many miles away, to have the opportunity to learn more about people, products and the world, but not to create isolation and self-pride.

The world at large wants a better life and better communication abilities, yet is hiding behind your computer screen looking up all the advice you think you need better than taking an hour to walk across the road to the neighbors porch and just visit about life and the experiences that have made you who you are and your neighbor to share theirs?

I would love to hear your thoughts!

Financial Security - How Secure is it?

Hey everyone, my apologies for the huge lapse of time between my last post. No excuses here, just hadn't gotten to it and then I allowed guilt of being so late to kick in for another couple weeks and hold me off! Procrastination is definitely an issue when it comes to things that are not "required" on a daily basis if there are other things to do (and who is anyone kidding, when isn't there other things to do?)!

Speaking of procrastination, that brings up a nice topic I feel should be shared and discussed! As every one of us has heard, I am sure more than once, one big key to a strong financial future is starting as soon as possible, and I don't think they mean after buying everything you want, but as soon as you start making any money, to budget it and begin to utilize it as a tool for your future. I find this fact best illustrated in this recent newsletter I recieved regarding kickstarting your financial future, best depicted by this point:

 Your assets grow through compounding – It may seem basic, but it's worth repeating – investing early makes it possible for you to double your money several times in your lifetime, thanks to the power of compounding. The longer funds are left to grow, the greater the result. To accumulate $1 million by age 65 (with a 7 percent rate of return), a 25-year-old investor could save $381 per month, while a 35-year-old would need to save $820 a month, a 45-year-old would need $1,920 a month and a 55-year-old would have to put away $5,778 a month to reach the same amount.

Now, this is a very obvious way to see that by procrastinating can be an expensive direct cost to you and your family, such as waiting the ten years from 25-35 will cost you over $110,000 more to reach the $1 Million dollar mark, now that is quite a penalty for waiting and is easily visible as a direct expense to you.

Now think about this, what if at age 25 you begin to save that $381 / month and are doing this faithfully to age 40, when tragedy strikes and you accidentally run a red light because the sun is in your eyes and you cause an accident in which 3 people perish. The average cost of a fatal crash is just over $1 Million / per fatality, and now you are responsible for $3 Million in liability damages. Do you have the proper insurance in place to protect you and your assets or will your financial security now be taken from you indirectly as a result of not being correctly insured? (I know in your mind right now you are thinking that this is a harsh way to prove a point.) I, in no means want to use scare tactics to prove a point, but do want you to understand that accidents happen, and if this were the case, would the auto insurance you have protect you and the assets you have worked so hard to build?

I am not saying it won't, but from experience, if you aren't sure that it will, you should have someone take an evaluation of your insurance for you. Even if you haven't started saving towards that $1 Million, it is important to have the right security in place. Don't procrastinate getting this done as accidents happen everyday and being improperly insured can create insecurities where you were sure you were doing the right thing and building your financial future. Please, share your thoughts on this topic and whether or not you know you would be protected in this type of situation.

How do you define VALUE?

Being a "young" (although we are no longer in our twenties) family, my wife and I, raising our three children, typically try and be thrifty when it comes to buying groceries to feed our ever growing brood, (not in number, just size). So, when we are cruising down the cereal aisle, with all of the sugary bright colored boxes all standing from 6 inches to 3 feet in height and the boring and mundane boxes up above, all of the prices seem outrageously expensive, (although less than the average trip to Caribou or Starbucks, but that is another topic) we like to look for the store brand or "off brand" cereals with oddly sounding yet similar meaning names to the name brands! Typically these less costly cereals save between 1 to 5 cents per ounce of cereal, or a dollar or two per package at best. So, being the thrifty shoppers we are, we seem to continually load up a couple boxes or bags of cereal into our cart each week to supply breakfast during our rush around mornings.

Now, if this is a brand or even flavor we haven't tried before we will open it up on Monday morning all excited as we imagine the flavors of those sugary sweet cereals we used to eat as kids, or once in a great while, the bearable flavor of a healthy cereal we have chosen for that week. Then, as we pour the milk on and dig in with excitement, just as we begin to crunch on that first bite, we have to look twice at the package and make sure the factory didn't accidentally box up the cardboard shavings left over from the box making rather than the real cereal.

At best, these bad ones taste like nothing at all and others leave a taste in your mouth even Listerine can't seem to eliminate for 3-5 days! Now, I am not saying they are all bad, we repeatedly buy some of them because they taste very good to us as a family, but others are a huge disappointment. So, what does this have to do with insurance and value you may ask?

Well, when my wife and I are doing our grocery shopping we are looking to save money, but when we return home we want to have food we can actually eat. What I am really looking for is not just about price it is about value. As defined by dictionary.com the best explanation I could see for what I was wanting was this:

value (ˈvæljuː) - reasonable or equivalent return; satisfaction: value for money

That is exactly what I am looking for, not only when I am shopping for groceries but when I am making any purchase, especially those that have a larger price tag. I want to spend what is necessary to get what I need or want out of that purchase.

This same principle applies to buying insurance, the difference is, it's not packaged in bright boxes on the bottom shelf for younger consumers and in boxes with fruits and grains all over for the more experienced and wiser consumers, and it is a larger purchase with much larger financial and emotional implications than poor or terribly tasting cereal. If you go into insurance and either buy it purely on price or on nostalgia of family history or a fancy namesake, it may not be the best value for you and your family.

Insurance agents should be considered a personal shopper for you and your family with your overall best interest at heart. They are trained to have already looked for the value in each company and policy type that should fit your families needs to help you avoid from paying too much for something unneccessary but also to help you avoid that bitter aftertaste from paying too little and the long term after effects that can have on you and your family.

The key is to communicate with your current agent, or one that is willing to take time and visit with you about what you need and expect out of an insurance policy or policies. They can then evaluate your needs and expectations with what insurance can fit your situation best. Then share that and the options available with you along with the benefits and downfalls to those options. This way you get VALUE out of your insurance purchase up front rather than finding out after tragedy has struck.

If you have any questions about your current insurance or would like an evaluation, I know there are many great agents in your area that would love to consult with you, and if you have or find one that isn't, give us a call at Advantage 1 Insurance, because here, your policy always comes with an agent!

Spring Forward: Spring Cleaning and Safety Updates

This weekend my wife and I began the process of cleaning up around the house for spring and planning a garage sale and I swear the only thing that makes the job bearable is that the spring weather has set in and with each trip to the garbage can you can enjoy that! So, as I searched for ideas to share with you this week for the blog I came across this great update presented by the Trusted Choice website and wanted to pass it along!

 

Temperatures are getting warmer and now that it’s spring, it’s time for spring cleaning and making spring time repairs around the house. Taking care of our homes is important, so take a moment to understand how taking care of things around the house can impact your insurance with these spring time tips:

Spring cleaning inside the house

Time to dust, sweep, vacuum and scrub! For many of us, this can also mean cleaning the kitchen and bathroom, where we might find ourselves using chemical based cleaning agents. Make sure that if you’re using these using chemical cleaners you properly ventilate the room you’re in, because sometimes the fumes from these products can be quite powerful. It can be as simple as opening windows and make sure you keep interior doors open to allow air to flow throughout the house. These simple steps can help you prevent getting too dizzy, or potentially passing out if you breathe in too many fumes. It’s also critical to keep and store these products safely- keep them in a cool dry place that isn’t accessible to small children or pets, and always follow the instructions on chemical cleaning products.

You should follow similar rules for ventilation and storage when working with paint or wood stains. In addition to fumes, paint also poses separate risks to hardwood floors, carpets and furniture, so whether you’re just touching up a window frame or redoing the whole room, make sure you use drop cloths to protect floors and furniture. In fact, if you can, move all furniture and area rugs out of the room when painting, but if you cannot, make sure they’re clear of the walls and covered. The last thing you want is a paint stain on your carpets, hardwoods or your furniture.

Never dispose of paint or chemical cleaners down your sink- if you want to get rid of extra or expired cleaning products and paint, contact your local municipality about how and where you can dispose of these items safely. Many communities will designate certain days when they will collect these items so that they can be disposed of appropriately. If you were to improperly dispose of these items you could be found liable for any property or environmental damage they may cause, including clean-up costs and fines from local, state and federal authorities, and under a standard homeowners policy you would not have coverage if you dumped the chemicals, and those costs would come out of pocket.

 

Checking for Unwanted Guests

No, not the in-laws, but wild animals. During the winter months when temperatures drop, humans aren’t the only ones looking to get in out of the cold. If animals get into your home they have the potential to cause damage to the house, your belongings and they may leave a mess. Certain types of damage by animals may not be covered by your insurance policy, but if you discover damage that appears to be the work of an animal, notify your Trusted Choice^® insurance agent and take appropriate steps to remove the animals, and consider hiring a professional pest control firm if you aren’t comfortable doing so yourself.

Reduce your risk of a fire loss

While you’re cleaning the house, take a few moments to check fire extinguishers and smoke detectors. As you go through the house replace all of the batteries in your smoke detectors and test to make sure they work. If you own a fire extinguisher- check its pressure. Most municipalities have inspection requirements for fire extinguishers in public or commercial buildings, but not for private homes, so it’s important you check on at least an annual basis. While extinguishers have a longer shelf life than most products, over time they may lose pressure and the last thing you want to have happen when facing a kitchen fire is to have the extinguisher fail to actually extinguish a fire. When purchasing a fire extinguisher for your home, see that it’s classified for A, B and C fires. These classifications refer to different types of fires- ordinary combustibles, flammable liquids/gases and electrical fires. You want to make sure that your extinguisher is capable of handling these different types of fires.

Dust off the insurance policy

Finally, spring is a great time to review the “whole picture” of your homeowners or renters insurance. Trusted Choice agents have the ability to write insurance with multiple insurance companies, because, like the seasons, your insurance needs change. A Trusted Choice agent can work with you to make sure your coverage fits you and your family’s needs.

5 Insurance Mistakes to Avoid... Yet Still Save Money

This week I really wanted to find something that could be informative in relation to questions we hear all of the time. I found this incredible list that nearly nails 70% of our non-payment related questions on the head!

1. Insuring your home for its market value rather than replacement cost. Although this can reduce premium, you are putting yourself at financial risk in case of disaster. (Many companies won't even allow this type of cost saving measure anyway.)
- Instead- To save money, take a look at raising your deductible and increasing your risk by a nominal amount rather than a catastrophic one.

2. Selecting an insurance company by price alone. As independent agents, we love to help you get the best rate possible, but we usually look out for your best interest in the fact that sometimes "cheap" is truly that, and those companies aren't one you want to be insured with.
- Ask your agent about the company they are giving you a quote from - If the information is unavailable or unfavorable, ask them to find you another company with a competitive premium but better ratings. In this case it may financially cost a few more dollars, but the frustration and headache of dealing with a poor company will be very mentally, emotionally and time costly.

3. Dropping flood insurance. Flood insurance is typically recommended or required by a lender based on data and statistics of the location of your home. Although it may seem highly unlikely, it most likely has a greater chance of flooding in your home than those of you who continually pay money to play the lottery!
- If you are in the process of purchasing a home, do the research of the flood plains, and purchase in lower risk areas if you want to avoid this insurance. If you already are in the home and the lender is now requiring flood insurance, do your research and possibly get an engineering firm to do an elevation certificate, this may be some money up front but may save you from the insurance altogether or at least reduce your premium.

4. Only purchasing the legally required amount of liability for your car. Many quality independent agents will not even entertain this idea for you to save you and themselves from future headache. If you do however, think this is how you want to go, you must understand that any lawsuit incurred in which your limits are exhausted, then falls on your shoulders personally. In many cases this happens very quickly.
- Instead to save on your auto insurance, consider the age, condition of your car and visit with your agent about the possibility of either dropping one or both of the physical damage coverages, or possibly increasing your deductible again.

5. Neglecting to buy renters insurance. Renters insurance not only covers the belongings you own, which in most cases add up to a lot more than you may think, but also protects you in liability claims.
- To save money on your insurance, ask your agent about adding a renters policy to your portfolio, and many times, with the multi-policy discounts, your renters is nearly paid for by the savings on your auto! Don't believe me on this one? Try it!

If you would like to read the article I found in its entirety, please do! Click here...

Thank you for becoming a more informed insurance buyer and remember, at Advantage 1 Insurance, every policy comes with an agent!

III - Insure Against the Risk of Sewer Backup

Hey everyone, I know that we have had a mild winter combined with a lower amount of precipitation this spring, so you are most likely not concerned about water problems in your basement this year. One question, are you covered if your sewer backs up and starts to soak the carpet, mold the bottom of the sheetrock and rot the bottom of the pool table? Please check this out and give us a call if you need help with your own policy!
III - Insure Against the Risk of Sewer Backup
Remember, at Advantage 1 Insurance, every policy comes with an agent!

Make sure your holiday gathering is as wonderful as possible!

Planning to have a get together this weekend? Remember to do it smart!

Here is an article shared by the Insurance Information Institute regarding hosting a party in your home!

Be a Responsible Host When It Comes to Serving Alcohol at Parties

Whether you are hosting a Super Bowl party or greeting the New Year with friends in your home, if you are planning to serve alcohol at any type of party it is important to take steps to limit your liquor liability and make sure you have the proper insurance.

Social host liability, the legal term for the criminal and civil responsibility of a person who furnishes liquor to a guest, can have a serious impact on party throwers. Social host liability, also known as “Dram Shop Liability” laws vary widely from state to state, but 43 states have them on the books. Most of these laws also offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol. There are circumstances under these laws where criminal charges may also apply.

While a social host is not liable for injuries sustained by a drunken guest (as they are also negligent), the host can be held liable for third parties, and may even be liable for passengers of the guest who have been injured in their car.

Before planning a party in your home, it is important to speak with your insurance agent or company representative about your homeowners coverage and any exclusions, conditions or limitations your policy might have for this kind of risk. Homeowners insurance usually provides some liquor liability coverage, but it is typically limited to $100,000 to $300,000, depending on the policy, which might not be enough.

Most importantly, whether you are hanging out with a small group of friends for cocktails or throwing a big family bash, remember that a good host is a responsible host, and takes steps to ensure guests get home safely if they have been drinking.

How to Protect Yourself and Your Guests

If you plan to serve alcohol at a party the I.I.I. offers the following tips to promote safe alcohol consumption and reduce your social host liability exposure:

• Make sure you understand your state laws. Before sending out party invitations, familiarize yourself with your state’s social host liability laws. These laws vary widely from state to state. Some states do not impose any liability on social hosts. Others limit liability to injuries that occur on the host’s premises. Some extend the host’s liability to injuries that occur anywhere a guest who has consumed alcohol goes. Many states have laws that pertain specifically to furnishing alcohol to minors.

• Consider venues other than your home for the party. Hosting your party at a restaurant or bar with a liquor license, rather than at your home, will help minimize liquor liability risks.

• Hire a professional bartender. Most bartenders are trained to recognize signs of intoxication and are better able to limit consumption by partygoers.

• Encourage guests to pick a designated driver who will refrain from drinking alcoholic beverages so that he or she can drive other guests home.

• Be a responsible host/hostess. Limit your own alcohol intake so that you will be better able to judge your guests’ sobriety.

• Offer non-alcoholic beverages and always serve food. Eating and drinking plenty of water, or other non-alcoholic beverages, can help counter the effects of alcohol.

• Do not pressure guests to drink or rush to refill their glasses when empty. And never serve alcohol to guests who are visibly intoxicated.

• Stop serving liquor toward the end of the evening. Switch to coffee, tea and soft drinks.

• If guests drink too much or seem too tired to drive home, call a cab, arrange a ride with a sober guest or have them sleep at your home.

• Encourage all your guests to wear seatbelts as they drive home. Studies show that seatbelts save lives.

Enjoy your weekend with family and friends but remember to be safe!

Why is it important to open your mail? (Even through all the junk!)

Every day after school as I pull into the driveway my two daughters, (6 &4) begin to banter about who gets the "opportunity" to run out of the car and get the mail! As soon as I stop the car, they both rush to unbuckle, push their way out of the back seat and race down the driveway to the mailbox. On the occasional day that they make it to the mailbox and retrieve the mail without yelling or screaming at each other, I am thrilled to watch as the 6 year old hands a few pieces over to the 4 year old and they trot back towards the house with a smile as if they had just won the mega millions lottery! But, then as we enter the house, I have to come back to reality and realize they are 6 and 4 and I better get the mail from them quickly or it will soon be shoved in a midst of Monet-esque (at least to my wife and I) paintings, crumpled into the play kitchen oven, or my all time favorite; ripped to shreds to be confetti for the favorite doll of the days birthday party! (As you can probably tell, I have learned some of this the hard way after allowing them to rip up some of the junk mail in the past!)

So, why is it so important I get it back from them and look through it everyday? Most likely, although I hope every time, there will not be a check in there from a long lost relatives estate or anything of that sort, but it is still important to look through everything. Even though most of us will receive 16 pieces of junk mail per week compared to 1.5 personal letters, its those 1.5 personal letters, or wherever you classify the bills that still come by mail, that can have a huge impact on your life! We all know that by not paying those bills we soon will get collections notices and other reminders to pay this and if we continue to not get or read that piece of mail we will be sent to a collection agency where our credit will end up being affected as well. Most of the time these pieces of mail that continually get sent are for items that we have already purchased or received a service. This is not the case with insurance! With insurance, the signing of the application along with the down payment is the beginning of a contract. This contract requires you as the insured to pay your bill and for the insurance company to provide the insurance that it promised. Now, what happens if that bill your child just ran off with to start the next campfire was your insurance bill? Or the next week when the cancellation notice comes and you set the mail on the counter to look at it later? Eventually, depending on the specific insurance company you have, your insurance will be cancelled, and you will be owing your insurance company, driving uninsured illegally, and also, if you let your insurance be cancelled for more than 30 days, increasing your cost of insurance. I don't have to list the number of problems that could be caused with the lack of insurance while driving as I am sure you can imagine!

What then, can you do to eliminate this risk from happening and maintain your insurance for the best rate possible? My first advice, if you, like me, love to see the joy seeing a piece of mail brings your kids, make sure you grab it from them as soon as it works out and then READ it. Even if it looks like junk mail, take a minute to read those mail pieces because I would guess that you waste more than 20 minutes a week reading junk emails, you may as well take that amount of time to read your physical mail as well! If somehow, you just cant possibly find another 20 minutes in your week to ensure your mail is read, call your agent, set your account up on EFT so that it is automatically withdrawn from your account or possibly your credit card each month and you don't have to worry about it. Not only will this save you money in the long run, it may save you from service fees each month as well, sometimes as much as $7/month!

Please, right after you read this, make sure your mail for the week is read, who knows, maybe you do have that distant relative who passed away and your portion of the estate is enclosed, or perhaps you just missed a recent bill and can make it right before it begins to cost you more money!

Until next week, remember, your policy always comes with an agent at Advantage 1 Insurance!

Now that we are here, please leave a comment!

Over the past two weeks I have been trying to find a way to make the Advantage 1 blog more interactive and I am hoping that everyone agrees that this is a great solution!

So, please feel free to leave a comment or even pose a question you may have!

What I want to talk to you about today is the way technology has changed our world, in many ways for the better but in some areas (customer service), it feels (maybe just to me) that some things have changed for the worst with all of the technology available.

In no way am I advocating we get rid of the advances in technology, in fact I am quite addicted to many of them. What I am saying is that there needs to be a balance in some areas where technology is not relied on so heavily or if it needs to be, to refine it to be the easiest most efficient way to interact!

For example, how does it make you feel when you drive up to the local drive thru and the words coming out of the clerks mouth are less recognizable than Boomhauer of King of the Hill? I get extremely frustrated in these situations wondering if the fancy wireless headset they are trying to figure out is the problem or is it that the clerk is typically not used to actually speaking because all of their communication is done via text, facebook or twitter? Either way the resulting communication is hard to deal with and is most likely attributed to technology of some form!

Secondly, what about the auto customer service phone systems? I am sure for a companies bottom line these are the most cost effective, seeing how they will never sign up for the benefit package or create a large work comp claim! But, have the CEO's of these major organizations ever called one? I don't know about for you, but whenever I seem to call one and try and follow the prompts when they ask me a question, I continually get the response, "I am sorry I did not understand what you said" and I wonder if the lady with such an automated voice understands anything?

So, what are we to do in today's society where the need for speed and efficiency are so great but the technology created to make communication so much "better" is the core problem in breaking communication down? In some industries where the purchase is one you would probably consider insignificant, most likely, although you are very annoyed it won't affect your buying decision greatly. What about those significant purchases, cars, homes, financial items, insurance, etc.? Do you want to talk to Boomhauer until you are transferred to the automated woman? Or, better yet, at what cost savings (if any) would it be worth it to you to deal only with today's technology based customer service rather than a living, breathing human?

Please share as we at Advantage 1 Insurance would love to hear what it takes for you to put up with the hassle! Looking forward to hearing from you!

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