Flood Insurance Risk Rating 2.0: New & Improved

The National Flood Insurance Program had some major changes that became effective October 1st. They are calling this initiative “Risk Rating 2.0”, in which FEMA considers a substantial leap forward when it comes to flood insurance. While some of the changes are minor details, there are a few pretty big adjustments to this coverage that you’ll want to know about in order to best serve your clients.

Since the 1970s, this type of insurance coverage has been rated based solely off of a zone determined by the property location and elevation. FEMA now has years of analyzed data combined with a conscious effort to make flood insurance more fairly rated.
With the evolution of the new Risk Rating 2.0 program, FEMA will now use the following factors to more accurately rate a property for flood insurance:
  • Flood frequency
  • Multiple flood types such as river overflow, storm surge, coastal erosion and heavy rainfall
  • Distance to a water source
  • Property characteristics such as construction type, cost to rebuild, and elevation
  • Prior insurance/claims
Some things that remain the same are:
  • Existing statutory limits on rate increases require that most rates can not increase more than 18% per year
  • FEMA will continue to offer premium discounts for pre-FIRM subsidized and newly mapped properties
  • Policyholders will still be able to transfer their discount to a new owner by assigning their flood insurance policy when their property changes ownership
  • Discounts to policyholders in communities who participate in the Community Rating System will continue
FEMA estimated that 20% of Florida homeowners will see an immediate premium decrease, 68% will see an increase up to $120, and 12% will see an increase over $120.
Overall, this is good news and a positive, fair change moving forward. Flood insurance can be complex but it doesn’t have to be. Any time we can be of assistance with flood insurance questions, please reach out. We’re happy to help navigate these waters…. literally.

 

What exactly is Comprehensive coverage?

When it comes to auto insurance, the coverages on your policy can get a little complex. Some are for your injuries, some for injury to other people, some for your car itself, and some for other people’s cars or property.

Regarding your car, Comprehensive and Collision coverage can get confusing since both apply to damages sustained to your vehicle. In this video, Michelle and Jessica break down what exactly Comprehensive coverage is for and when you would use it in the event of damage.

Stay tuned to our You Tube channel for more videos to come! Thanks for tuning in!

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Struggling with disengaged employees on your team?

It’s always fun and exciting to go through the onboarding process of a new employee. Both you, as the employer, and the newest member of team are excited, things are fresh and new, and the future of working together is bright. Of course the hope is that those feelings will continue, it will remain a good fit for all and everyone will benefit from the partnership.

However, sometimes the honeymoon phase wears off and employees can become disengaged. Sure, part of that is natural and happens in all aspects of life. But as Jon Gordon refers to negative or disengaged employees as energy vampires, they can be detrimental to your team, clients, and goals as a company. This negativity can be toxic and needs to be addressed sooner than later.

So what can you do as a leader to prevent and recover from disengagement on your team? Here are a few tips we’ve compiled that may be helpful if you’re noticing the morale and engagement heading south.

First, defining and understanding disengagement is important. It can be cause by things such as lack of:

  • Communication
  • Recognition
  • Trust
  • Flexibility
  • Teamwork
  • Autonomy
  • Support

Next, recognizing and identifying when an employee is disengaged can be done by:

  • Poor performance
  • Missed deadlines
  • Lack of interest in development
  • Isolation from coworkers
  • Increased use of PTO

Then, it’s time to approach the employee:

  • Address the issue head on, skip the small talk but be certain to listen well, ask questions and document conversations
  • Discovering that individual’s motivation and what makes them tick Analyzing where engagement was lost and why
  • Identifying adequate skills and a plan to work to their strengths, even if it’s a change in their role
  • Come to a mutual agreement and commitment to action

The final step in this process is to work together towards a solution that will correct the problem by:

  • Create a specific and realistic development plan that includes your investment in them
  • Set goals and hold each other accountable
  • Encourage participation with the team, while keeping the personal plan confidential
  • Give consistent feedback
  • Recognize improved behavior and performance
  • Cheer them on to their potential and don’t give up!

 

“But the chances of me needing disability insurance are low…”

Have you ever thought or said to yourself that you don’t NEED disability insurance? Think your job is low key enough that injury or illness couldn’t ever limit you from working? Do you feel like you’d be able to manage paying for your lifestyle and bills with no income, even just temporarily?

These are all valid questions and pretty important ones to spend some time on. Of course like all insurance, disability (or income replacement as some may refer to it as) is protection against the unknown and a bit of a gamble. But similar to life insurance, it’s peace of mind for your spouse or family or even just yourself that in the event you are sick or hurt in a way that you’re unable to work, you can still have some financial means to cover your obligations.

Before you can decide if you need this protection, you need to understand what your options are. There are two main types of disability insurance:

  • SHORT TERM
    • Covers 40-60% of your base salary
    • Can last from a few weeks to a year
    • Short waiting period for coverage to kick in
  • LONG TERM
    • Covers 50-70% of your base salary
    • Benefits are much longer, typically to age 65-70
    • 90 day waiting period after onset of disability

We challenge you to check out these facts about disability and ask yourself honestly if you still believe you don’t need it:

  • More than 1 in 4 of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before reaching retirement age (Social Security Administration)… 1 in 4!
  • Many households would struggle to cover even a few months of living expenses with no income
  • Most long-term disabilities are caused by illnesses such as cancer, heart disease and arthritis, not accidents
  • Without income protection, recovering financially from a long disability can take years

If insurance can be required to cover material things such as your home and car, you really should consider your paycheck something worth protecting too.

Should employees be driving their personal vehicles to the job site?

With a (thankfully) booming construction industry these days and growth even happening outside of our home towns, travel and transportation is more of a focus than ever. Safety should always be the first concern but liability is a close second.

Some business owners may question what the right thing to do is when it comes to employees getting to and from job sites daily. Should they drive their own personal vehicle? Or should you provide a company vehicle? What do either of those scenarios look like from a coverage standpoint to be sure you and your company are protected? Here are a few tips that will hopefully help clarify these uncertainties.

Quite simply, it is not recommended that employees drive their own personal vehicles for work purposes. Work use is typically defined by going to or from a job, transporting tools or equipment, and/or other employees riding along as passengers. If an employee crashes their own car while working, their personal auto policy usually pays first, but many Florida drivers carry only the state minimums, and personal policies can exclude some business uses. Your business can be sued too. Without hired and non-owned auto coverage on your business policy, your company may have no protection for that claim.

If you decide to provide a company vehicle to an employee, there are a few steps you can take (in addition to adding them to your policy immediately) to avoid what we call “negligent entrustment.”

  • On the written job application, ask applicants to list any driving violations or accidents from the past 5 years.
  • Get permission to check driving records on a separate form, not in the job application. If you use a screening company or a third-party monitoring service to pull motor vehicle records (MVRs), federal law requires a standalone written disclosure and the driver’s signed authorization first. If the form says so, one authorization can cover checks during employment as well as at hire, so you can review records every year. If a driving record leads you to decide not to hire someone or to take away driving duties, there are also notice steps to follow before and after that decision. The FTC’s guide, Using Consumer Reports: What Employers Need to Know, walks through each step, and it’s worth having your employment attorney review your forms.
  • Before allowing anyone to drive a vehicle for company purposes, have the individual provide proof of a valid driver’s license.
  • If the individual has lived in other states during the previous 5 years, obtain drivers’ license information for those states.
  • Require all drivers to report any violations they receive or accidents they are involved in as soon as possible. This includes incidents involving personal vehicles.
  • Check all drivers’ MVRs at least once a year.

Other important factors include:
– Vehicle Condition and Maintenance
– Driver Training
– Policy of Restricting Personal Use of company vehicles (including those vehicles that go home with employees after work hours)

Evaluating the current status of your company’s fleet safety and risk management program is extremely important. And a step further, making the effort to improve those policies where needed on a regular basis will help limit your company’s exposure to a negligent entrustment judgment, as well as help control your future insurance costs.