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!