(I wrote the following article for the May 2012 issue of Haymarket Lifestyle Magazine)

A few weeks ago, I called Pei Wei Asian Diner in Gainesville to order dinner for my family.  We tend to order our favorites every time:  honey chicken and Mongolian beef.  The cool thing about it is that Pei Wei knows this already.  They use caller-ID technology and they greet me by name when I call and their computer also has a history of my orders so they know what I’m probably going to order.  They even know that I like the Honey Chicken without the garnish on top.  How cool is that?

If you’re a local business owner feeling the pinch, don’t give into the temptation of lowering prices.  HINT:  It won’t improve your business nearly as much as you may think.  Instead, focus on two important qualities that all successful businesses posses:  FRIENDLY and MEMORABLE.  The best part about improving these two parts of your business is that they essentially cost nothing.  Here are some examples of friendly and memorable service that I have experienced locally:

• 14910 Washington Street in Haymarket has been 3 different restaurants since I moved to Haymarket.  The first two failed.  El Vaquero West has been there for several years.  They are packed every night.  Why?  The food is great.  They gladly re-fill your drinks and chips/salsa at no extra charge.  They make you feel special by calling you amigo/amiga.  Oh…and they’re ALWAYS smiling.
• Zinga Frozen Yogurt in Gainesville has established a wonderful Facebook fan page.  They post pictures of their customers.  They run promotions on Facebook all the time (e.g. first 10 people to come in and mention this Facebook post get free yogurt tonight).  NOTE:  Facebook is free.
• BB&T’s Heathcote Blvd branch has quarterly customer appreciation days.  It’s more than just a free coffee mug…there is free food from local restaurants and they allow their customers to set up booths for free to market their products/services to all attendees.  Brilliant.
• Ever drive by Gainesville Chick-fil-A at lunchtime?  It’s easy to figure out why cars are wrapped around the parking lot while across the street, BK and Taco Bell only have a handful of cars in line.  Chick-fil-A provides a consistently friendly experience on every visit.  They also understand that children ultimately make the final call on which fast food joint to go to, so they hold themed events almost every week.  In fact, each Chick-fil-A has a marketing manager!

If your business didn’t have the great 1^st quarter you were hoping for, I’m challenging you to put more time into the experience that you provide to your customers every time they call or walk in your door.  What are you doing to make them want to go tell others about you?  Here are some suggestions:

• Start learning your customers’ first names and begin greeting them by first name when they come into your place of business.  EVEN BETTER: If you’re a dry cleaner or similar business, start recognizing your customer’s car as they pull up and have their order ready when they walk in.  I go into my dry cleaners every week.  And every week they greet me with “PHONE NUMBER!”  Not great.
• Invite your 10 best customers to meet you for a cup of coffee and ask them why they do business with you.  They will give you a report card that no “business expert” could ever provide!
• When a customer leaves and says Thank-You, quit saying “No Problem” and replace it with “My Pleasure”.   Ritz-Carlton started saying this years ago and they’re one of the most recognized brands in the country when it comes to memorable service.
• Start a business page on Facebook and cater it to your business.  Don’t make it a constant sales pitch for your company.  If you’re a florist, post pictures of your best arrangements.  If you’re an insurance agent post a picture of your proud customer who just came by to add their brand new car to their policy.  If you’re a restaurant, post your daily specials at the same time, every day.

Prior driving history is a big factor in determing your auto insurance rates while shopping around.  Most insurance companies want to see five years of relatively clean driving history in order for them to offer you their best rates.  This history is confirmed by MVR’s (Motor Vehicle Reports) and CLUE (Comprehensive Loss Underwriting Exchcange) reports.  In the case of international drivers moving to the United States, this information is generally not accessible by domestic insurance companies.  So the sad reality is that these drivers tend to pay higher rates for the first 3-5 years of residence in the United States, even if they are good drivers!  This may also be the case for US Citizens who get relocated for business for a few years and then move back to the US.  (NOTE:  There ARE accomodations made for members of the military who were overseas.)

If you have been driving internationally and are moving to the US, do yourself and your wallet a favor.  Call your international insurance company and request a “letter of experience” that outlines when you were covered and what type of claims you had.  If you can obtain a driving history report as well, that will help.

As always, please contact me with any questions.

 Trick-or-Treaters

• Carry a flashlight.
• Stay on sidewalks, do not run and always obey traffic signals.
• Stay in familiar neighborhoods and only approach homes that are well lit.
• Wear reflective clothing.
• Do not wear masks while walking house-to-house.
• Make sure your costume does not drag and only carry flexible props (e.g. swords, wands, etc…)
• Steer clear of unfamiliar animals/pets.

 Parents

• An adult should accompany young children.
• Purchase only flame-retardant costumes.
• A safe alternative to pumpkin carving is pumpkin painting.
• If your children trick-or-treat on their own, be sure that:

1. They wear a watch.
2. They carry quarters or a cell phone to call home.
3. They know where to reach you if you’re not home.
4. They travel in a group.
5. You explain the difference between a “trick” and vandalism.

 Homeowners

• Use small flashlights in jack ‘o lanterns rather than candles.
• Offer a well lit, clear path to your door.
• Keep animals inside and away from trick-or-treaters.

 Drivers

• Slow down.  Children will be running everywhere.
• Partygoers should always elect a designated driver.

 Treats

• Tell children to bring candy home to be inspected before consuming anything.
• Look at the wrapping carefully and pitch anything that looks suspicious.
• If you discover a treat that has been tampered with, contact the proper authorities.

1. Be Prepared.  In the event of a catastrophic claim, how great would it be to have pre-disaster video/photographs of your home to share with your insurance claims adjuster?  This is a relatively simple task to accomplish these days.  Spending an hour walking around your home taking video inventory of your personal contents as well as video/photos of your home will save you a ton of time scrambling for receipts to show your adjuster.  I even know of some professional video companies in the Northern VA area who will do the entire process for you for about $150.  Contact me for additional information.
2. Know Your Deductible.  Most of you know that your home insurance policy has a deductible, usually $500 or $1000.  What you may not be aware of is that a few companies’ policies carry a much larger “Hurricane Deductible” which is a percentage of your dwelling coverage.  Example:  Your dwelling coverage on your home insurance is $400,000 and you have a 2% Hurricane Deductible.  This means that you’ll be paying for the first $8,000 worth of damage resulting from a hurricane.  Brace yourself…some policies carry a 5% deductible ($20,000).  Yikes.
3. Know that Flood is Not Covered.  Most insurance policies exclude flood damage.  In order for this to be covered, you need to purchase this coverage separately through your insurance agent.  Coverage is available for your dwelling as well as contents of your home.  IMPORTANT:  Flood insurance typically carries a 30-day waiting period. So if you call your agent the day before the hurricane is arriving, you will likely be out of luck.
4. Take Preventative Measures.  If you sustain wind damage and can safely prevent further damage from occurring through the use of tarps and covers, do it!  Save receipts from any materials used…most insurance companies will reimburse you.
5. Don’t Forget About Your Car.  Assuming you have Comprehensive coverage on your auto insurance policy, you should be covered if the next hurricane knocks a tree over on your car.

 1.       Shred your important documents.  Make sure you are using a cross-cut shredder, not a “spaghetti” shredder.  Cross-cut shredders make it impossible for someone to put the pieces back together.  What to shred?  Any personal documents that may have account numbers, your social security number or credit card number.  Also, those “Pre-Approved” credit card and mortgage offers…shred ‘em!

2.      Want to cut back on the number of those “Pre-Approved” offers you get?  Go to http://www.dmachoice.org/.

3.      Don’t conduct personal business at work.  If you become a victim, there is a good chance it’s from someone you know.  Have you ever looked up your bank account information on the computer at work?  How about making personal business calls at work?  Save those calls for your home or if you have to make a personal business call at work, go into a completely private environment.

4.      Do you still carry your social security card in your wallet?  If you do, your chances of becoming victimized just went up exponentially.  Keep it at home in a safe location.

5.      Drop your mail off at the post office, not at work.  Every office has a common area at the front where business mail goes.  Occasionally you may drop some personal mail in that bin as well.  When you do this, you are allowing virtually anyone from your office to grab your mail as they walk by.  Instead, drop your mail off at a secure USPS mailbox.

6.      Check your credit reports at least once per year.  Go to http://www.annualcreditreport.com/.  From this website, you can access one truly free credit report per year from each of the three reporting agencies: Experian, Equifax, and TransUnion.  Note: FreeCreditReport.com isn’t free!

7.      Be cautious of unsolicited phone calls or emails asking for personal information.  If your bank is sending you an email asking you to update your personal information, it’s probably not coming from your bank. 

8.      When choosing passwords, choose wisely.  Since ID thieves can typically be people that you know, make sure your passwords don’t include something predictable.  Mother’s maiden name, pet’s name, wedding anniversaries are easy for others to figure out.

9.      Look at your bank accounts and credit card records regularly.  This may not cut your chances of becoming a victim but it may prevent it from spreading.  The longer ID Theft goes undetected, the harder it may be to fix.

10.   Be very cautious about using your credit card or ATM card.  While you’ll never be able to completely eliminate use of a credit card, you can cut back on using it in restaurants and other places that take your credit card into another area for processing!

Here’s my take.  If you’re a good driver and the insurance company wants to charge you an extra premium for accident forgiveness, leave it off, save the money, and take your chances.  It’s my philosophy that insurance is used to cover the catastrophic things.  So why buy “insurance” to prevent your insurance from going up?

Just my opinion.  You can leave your comments on this page or visit my Facebook Page.  Just remember that not all accident-forgiveness plans are created the same.  Ask the important questions.

I looked at a random home insurance customer who is paying $859/year for insurance with a $500 deductible.  As you know, this means he will pay the first $500 of damage if he has a claim.  This customer, if he increased to $1000 deductible would save $80/year.  I know…doesn’t sound earth-shattering…but if you consider the average homeowner has a claim about once every 14 years, he’ll save $1120 over this time.  If he is average and has one claim, it will cost him $500 more than if he had $500 deductible.  Net savings:  $620.  If he is worse than average and makes two claims, he still nets a savings of $120.  It becomes even more of a no-brainer when you factor in the whole time-value of money (i.e. a dollar saved today is worth more than a dollar paid out in the future).

I used a similar example for collision coverage on auto insurance.  My customer was paying $1165/year for two cars with $500 deductible.  He increased to $1000 and saved $168/year.  For every 3 years he goes without a claim, he makes a net profit.  If he is an average driver, he’ll have a collision once every 5-7 years.

HOWEVER:  Please don’t live in fear of a high deductible.  If you are a safe driver, ask yourself the question “How high of a deductible would I be able to pay without it being a major financial hit?”  If you’re truly living paycheck to paycheck, then the $1000 deductible may not be a fit for you.  So my advice would be to try your best to establish an emergency fund.  Once it reaches $1000, keep that money safe and then increase your dedcutibles.  If you have a claim, the money is there.

For a personal, no obligation review of your coverage, please email me or call 571-969-3743.

First of all, the information given in this blog article is very general and your personal situation may certainly differ.  This article is meant to get you thinking (and hopefully saving $).  For a detailed analysis, please contact me. 

I’ll get the easy part out of the way.  Employers generally pay for coverage equal to 1-2x an employee’s salary.  You won’t be able to get this coverage from someone like me for free, so take it!  However, most homeowners and parents have a much larger need than that.  So if you need additional coverage, here are some things to consider when you compare “Get it from work v. Get it on my own”:

• When you buy group insurance, you have no control over the policy.  The company can cancel it at any time.  They can also stop offering it at any time.  They own the policy.  This won’t affect you…until they stop offering it.
• If you leave your job, you generally can’t continue your coverage.  If there is an option to “convert”, it’s usually at a much higher cost.
• 99% of all Group life insurance I have ever seen goes up every 5 years.  The “age bands” are normally as follows:  25-29, 30-34, 35-39, 40-44, 45-49, 50-54, and so on.  (See example below)
• Look around the office at the other folks in your age band.  You are basically sharing the risk with all of them.  If you think you’re healthier than others in your group, then you may be able to save big money by purchasing on your own.  If not, then price-wise, group insurance may be a better option.  If you are “uninsurable” and your company offers a guaranteed policy issuance option, that may be the best option for you.
• I’ve seen group life insurance policies that only cover natural death and not accidents.  Are you kidding me?

 So here’s an example from a “group term insurance” rate sheet that I found online: a 35-year old healthy male pays for $200,000 coverage through work.  At this particular company, here is how much this man would pay annually over the next 30 years:

• 35-39:  240/year
• 40-44:  384/year
• 45-49:  672/year
• 50-54:  1176/year
• 55-59:  1992/year (yikes)
• 60-64:  3336/year (double yikes)

Total Paid over 30 year:  $39,000

If this same man is a non-smoker in reasonable health, he could get a 30-year policy for between 233-407/year…locked in and rate won’t change over the 30-year term.  Over 30-years, total is between $6,990 and $12,210.  Huge savings! 

Unfortunately what happens is that an employee gets a job when they’re young, doesn’t notice the small premium, and then over the years, it creeps up on them.  You may not consider yourself “young”, but I guarantee you’re a year younger now than you’ll be next year.  Do yourself a favor: look at the cost of your group life insurance this year and if you aren’t sure whether you’re getting the best short-term and long-term deal, contact me.  No charge.  Just answers.

In reality, I probably should have included an (e) choice that was “not enough info given”, the choice that always drove me nuts on my math exams in college.  But in this case, (e) probably would be the best choice.  Second best choice?  Surprise…(c).

When you are trying to figure out the correct amount of coverage, the question that needs to be answered is not “How much are the homes selling for in my neighborhood?” but more like “If my home burned to the ground, what would it cost a contractor to rebuild my home on the same land?”  So your insurance company should be most concerned about things like square feet of living space, number of bathrooms, type of flooring, age of home, construction type, size of garage, and custom features and less concerned about the market value of your home.  Especially in Northern Virginia, don’t be afraid if you buy a $500,000 home and your insurance company only needs to insure it for $325-375k.  (Disclaimer:  All homes are unique so you should contact your insurance agent with specific questions.)

IMPORTANT NOTE:  If your insurance company tells you to insure your home for a certain amount, ask them what happens if your home burns down and it ends up costing more than your coverage limit.  Any reputable company will have some kind of “buffer” that covers you so that you’ll only be paying your deductible if you have a claim.

If you would like to know what the replacement cost for your home is, you can contact me at 571-969-3743 and I will do it for free, or you can go online and pay $10 to do it yourself at www.accucoverage.com.