Homeowners Underinsured Due to Rising Inflation: APCIA

A survey by American Property Casualty Insurance Association (APCIA) found that most homeowners have not taken the necessary steps to insure their insurance coverage keeps pace with rising inflation and increased building costs. This survey that included 1000 homeowners with home insurance highlights the risks of being underinsured if catastrophe strikes!   

APCIA’s survey also revealed that 64% of homeowners are unsure or believe that their coverage limits are based on the real estate market value rather than rebuild costs. Another survey by the Harris Poll found that only 30% of homeowners with insurance have purchased more insurance or increased their coverage to account for rising building costs. Less than 40% of the insured homeowners who completed renovations or remodels during the pandemic had updated their insurance to include those changes.  

U.S insurers paid out a record-breaking $176 billion for natural catastrophe claims in 2020 and 2021, making it the highest total during those two years periods of time as well!  

Inflation, recent supply chain issues, and increased demand for skilled labor and construction materials following unprecedented natural disasters in the last two years have recently contributed to a significant increase in the costs of rebuilding homes and businesses. The cost of construction materials also has increased by 44% from 2019 to December 2021. This has resulted in longer rebuilding time and staggering high prices.  

Add A Few Features To Stay Prepared 

APCIA suggests adding a few coverage features to avoid surprises during the recovery process following a natural disaster:  

• Additional Living Expenses coverage can help cover hotel costs, food, and other necessary items like medical equipment if it takes longer than expected for your home reconstruction project’s timeline!  
• Extended replacement cost coverage means that your policy will increase to cover rebuilding costs when labor and material expenses skyrocket due to natural disasters.  
• Replacement cost coverage pays for your home and property when an emergency forces you out, like a natural disaster or fire. The company will pay up so that they can build it again from scratch – all without taking away any of its value in depreciation!  
• Automatic Inflation Guard protects you from rising healthcare costs by automatically adjusting your coverage amount at each renewal. However, during periods of extreme market stress, it remains essential to review these limits as they may change drastically!  
• The best protection against costly fines and penalties is ensuring your home meets all local codes. Building Code coverage helps ensure that you comply with any new regulations, which could save both time and money on unnecessary repairs or replacements!  

APCIA also suggests you make an inventory of all your home’s contents. If any disaster or unexpected event arises, you can swiftly account for all your property and report the losses to your losses. You can always use your smartphone to take photos or videos for the inventory. Many insurers also know free tools that can help you in this process. Whatever route you take for inventory creation, save everything to a safe, accessible place like the cloud. 

- Doug Myrick

Like a Light in the Dark

Take a minute out to watch this great video about living benefits. It's a powerful story about the impact we can have on clients.

“Like a light in the dark.” on Vimeo

Brutally attacked at her place of employment as she pulled into work one Monday morning, Heilyn Hernandez Pages was doused in gasoline and set on fire. The attack left her with severe burns covering the majority of her body. Heilyn’s miraculous road to recovery would prove to be a costly one, requiring multiple graft surgeries and occupational therapy to regain full mobility. She was unable to work while in the hospital, and her income dropped to zero.

10 TRAITS OF EFFECTIVE TEAMS

Across the globe, whether it is a work team, sports team, or non-profit team, there is something very special about a group of people that come together, bring their best self, and encourage and inspire others to be better every day.

Over the past 50 years, I’ve had the opportunity to work with a variety of teams and I’ve learned how important it is to love what you do, where you work, and with whom you work. When you have those 3 things, it is magical! It is also highly likely that you are part of a highly effective team.

What are the key ingredients that create an effective team? Is it working for a great company, hiring the right skills for the position, having a well-defined process so everyone knows what to expect? There are so many things that go into creating an effective team. If you currently have an effective team, you know it is special and rare. Be sure to nurture it at every angle.

If you’re looking to build an effective team, here are 10 things to consider:

EXPECTATIONS

It is important to have your standard operating procedures (SOP) documented and understood by the team. For example, what you do and don’t do, how you do it, when you do it, why you do it, and clarity around who does it. Clear expectations keep everyone on the same page. When expectations are documented, communicated, and followed, it makes onboarding new staff easier, aids performance discussions, and allows the team to self-regulate.

HIRING

Building an effective team starts in the hiring process. Hiring the best individual for the position is a critical factor for the team and your bottom line.

Never settle for a candidate because you need to fill a position. Your goal should always be to find a candidate that raises the effectiveness of your team. Include expectations in the job description. Provide as much information about the position and expectations upfront so the candidate has a good sense of how the team operates. Consider including a team video in the job posting to highlight what the team does, how they operate, and the team culture. Interview questions should help you gather information on the candidate and give them more information about how the team operates.

ONBOARDING

Onboarding is a critical function for team performance. You never get a second chance to make a good first impression. Be ready for your new hire. Equipment, training, and documentation should all be ready when they start.

If you want your new candidate to perform at their best, be sure to show them the best. You set the tone. Provide the candidate with their orientation and onboarding expectations. Have the team give them a warm welcome.

MENTOR

Having a friendly peer to go to increases a new hire’s engagement on the team and impacts team effectiveness. Assign a mentor for new hires on their first day. The new hire should understand when to go to their mentor, their manager, or their team for assistance. Mentor training is also important to set expectations and ensure the mentor has the skills needed to be an effective mentor to the new hires.

TEAM DYNAMIC

Nothing kills a team’s momentum quicker than an ineffective teammate. Team members that come in late, do the bare minimum, don’t communicate with the team, and take excessive breaks will negatively impact a team’s effectiveness.

Ask the team what is important to them. What do they expect of each other? Collect their feedback and consolidate their feedback anonymously and share it with the team as an opportunity for team discussion. Include the feedback in your team’s operating procedures. When a team defines what’s important to them, they will be more likely to embrace and nurture it.

LEADERSHIP

When you think about great leadership, what comes to mind? Who are the best leaders in your life? Why are they the best? Leaders are typically people we admire and aspire to be. Encourage everyone on the team to be a leader. Discuss and define the difference between leadership and management. Leadership is a skillset, with many traits that can be enhanced through discussion, encouragement, and training. When leadership is not a position, it allows everyone to step up, self-manage, and build an effective team of leaders.

CONTINUOUS IMPROVEMENT

Teams that embrace continuous improvement naturally look for ways to make things better. Growth keeps things fresh and encourages engagement. Change doesn’t have to be because something is broken. Rather, change should happen when we have the knowledge and experience to do something better.

COLLABORATION

Make collaboration a priority. Understand that collaboration is different from communication. Communication is typically one-sided or meant to share information. True collaboration encourages discussion. It creates an atmosphere of sharing and growth.

For example, hold a daily team meeting to share lessons learned, allow for discussion, and to get to know each other. Creating an open and safe environment to ask questions builds trust and encourages team comradery.

PROFESSIONAL DEVELOPMENT

An effective team is also an educated and well-rounded team. Beyond the classroom and virtual training, find opportunities for the team to be involved in committees and/or projects within the company. For tasks and meetings that don’t require management involvement, provide the opportunity to the team to encourage personal growth. Look for industry events and training, like ICMI, to reinforce skills and highlight the fact that the support profession is a career.

HAVE FUN!

It is important to laugh and have fun at work. We spend so much time at work and many of us want our work to be enjoyable. Sometimes you need to lead the way and give your team permission to have fun at work.

Create an outlet for the fun stuff. If you have a chat tool, create a room for people to share birthdays, funny memes, and clean jokes. Teams that play together often stay together!

Loving what you do, who you work with, and where you work is attainable. It requires intentional leadership and management. Once you build it and nurture it, others will see and feel the benefits and embrace it as well.

What a wonderful world this would be if we all worked on an effective team with coworkers that inspired the very best from everyone. Cheers to all the effective teams out there!

- Doug Myrick

It’s important to meet with your insurance agent once a year to make sure your insurance needs are met.

To make sure that you have the policy coverages that best meet your individual needs, we recommend meeting with your agent to review your policy coverages on an annual basis. If you have a significant change occur in the meantime, such as adding a pool or a remodeling project, contact your insurance agent to adjust your policy coverages as needed.

Here’s a checklist of items to discuss with your insurance agent:

• In the next year, are you considering retiring, or will any children be moving away from home to attend college?
• Are you planning to make (or have you recently completed) renovations to your home on the interior or exterior?
• Have you added a security system or made updates to your home’s roof, plumbing, electrical, or heating/cooling systems?
• Are you considering purchasing (or have you recently purchased) additional personal property, such as jewelry, collectibles, electronic equipment, furniture, etc.?
• Based on any changes to your home or contents, do you need to increase or decrease current coverage limits for your policy?
• Are you adequately covered for flood damage to both your home and property?
• Do you wish to make changes to your policy deductible options, reduce annual premiums, or minimize out of pocket expenses?
• Does your policy include an adequate amount of liability coverage given your individual situation and assets?

Ways You Can Make an Impact: Small Business Week 2022

In 1953 the federal government created the Small Business Administration (SBA) to help business owners grow and prosper in our “Land of Opportunity.” In 1963, President John F. Kennedy proclaimed the first National Small Business Week to honor top entrepreneurs in every state with special recognition and rewards. By promoting these business leaders and their successes, the SBA shares ideas, help, and inspiration for owners across the country.

Small Business Week has continued for nearly 60 years and grows in scope — with each new generation of startups and entrepreneurs leaving their imprint on the event. National Small Business Week (NSBW) will run from Sunday, May 1 through Saturday, May 7 in 2022. The SBA will announce winners for the 2022 awards in 13 categories, including:

• Small Business Person of the Year Award
• Small Business Exporter of the Year
• Phoenix Award for Small Business Disaster Recovery
• Small Business Development Center Excellence and Innovation Award
• Veterans Business Outreach Center Excellence in Service Award
• Women’s Business Center of the Year Excellence Award
• Small Business Investment Company of the Year

Some local SBA offices also issue SBA District Office Awards. Nominations are closed for 2022, but if you have a small business or are inspired by one, plan on nominating them in 2023.

The SBA is sponsoring a virtual event for 2022. The Building a Better America Through Entrepreneurship virtual summit will run May 2 to 5, 2022. The event provides tools and information for entrepreneurs to “further power our economic growth, strengthen our supply chains, and deliver the products and services Americans depend on every day.”

Small Business Month and Day

STARTING WITH SMALL BUSINESS WEEK, MANY AREAS EXTEND THE CELEBRATION THROUGHOUT MAY FOR SMALL BUSINESS MONTH.

There are other annual celebrations for small businesses as well. Starting with Small Business Week, many areas extend the celebration throughout May for Small Business Month. Companies can choose how long they promote their business, either for the week or through the entire month.

In 2010 American Express began promoting Small Business Saturday: in 2015 the Small Business Administration joined the event as a co-sponsor. Typically the Saturday after Thanksgiving, Small Business Saturday will fall on November 26, 2022. American Express promotes the event with national advertising and businesses around the country participate. It’s estimated that since Small Business Saturday began, the event has generated about $103 billion in revenue for local companies.

There’s reason to celebrate

There are great reasons to celebrate small businesses in the US. According to the U.S. Small Business Administration Office of Advocacy, in 2021 there were 32.5 million small businesses in the U.S.:

• 99.9% of U.S. businesses are small businesses
• 99.7% of companies with paid employees are small businesses
• Small businesses employ 46.8% of private sector workers in the U.S. (61 million)
• Small businesses generate 43.5% of gross domestic product, and almost 40% of private sector payroll
• Small businesses earn $13.3 trillion annually — 35.6% of private sector receipts

Compared to large businesses, small businesses are growing faster, according to the SBA. From 1995 to 2020, small businesses created 12.7 million net new jobs: large businesses created 7.9 million. Post-pandemic data has not been compiled, but some losses have likely occurred.

How do you celebrate a Small Business Week?

Small Business Week (1st - 7th, May) are all about shameless self-promotion, and why shouldn’t they be? You had a vision you turned into action. Whether you’re your only employee or you have a 100 on the payroll, you provide jobs and a valuable product or service to your community and beyond. Celebrate the event(s) alone or alongside your neighboring small businesses.

WHETHER YOU’RE YOUR ONLY EMPLOYEE OR YOU HAVE A 100 ON THE PAYROLL, YOU PROVIDE JOBS AND A VALUABLE PRODUCT OR SERVICE TO YOUR COMMUNITY AND BEYOND.

Tell your story

Let your customers know who you are, what inspired you, and the history of your company. If you’re a generational business, blow up pictures of the ancestors who started the company and post them on social media, in windows or inside the business with their backstory.

Post your inspiration or where you plan to grow and develop on social media pages, too. Customers love to support local businesses: telling them your journey (or your family’s) builds brand loyalty.

Brag about your team

Let your customers know how much you appreciate the team that serves them. You can blow up pictures of your employees with their work story, too. List when they started, if they’ve moved up the ladder, how much customers rave about them, etc. You can even make it silly. If they’ve been with you for many years, try to find an old photo to compare with today’s look.

Thank your customers

Make sure you’re extra thankful to customers during any event. Add a picture of the first dollar you earned — hopefully with the date marked on it, or the day of your grand opening in your window. Let clients know you’re grateful they’ve been with you from the beginning, or that they just found you!

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