With home values significantly rising across the country over the past few years, it’s important to understand the difference between dwelling value and market value when it comes to home insurance. When buying or selling a home, much of the conversation and considerations focus on market value, which is the amount a home can be bought or sold for in the current market. In contrast, insurance companies prioritize dwelling value, which is the estimated replacement cost of a structure. 

How Much Dwelling Coverage Do I Need?

An insurance company is never going to sell your home, but they will replace it should you suffer a catastrophe like a tornado or house fire. For this reason, it’s vital that your home is insured for the proper amount needed to rebuild rather than what the real estate market might dictate the home’s worth to be based on the current housing market. 

Several years ago, when it was considered a “buyer’s market,” many homeowners were confused about why they were required to insure their home at a value higher than what they were likely to receive if they sold. Due to the lack of demand and ample homes on the market, market values had been driven below cost to rebuild. In 2022, however, we find ourselves navigating a very different landscape. Rising inflation, pandemic impact, and the current “seller’s market” have driven both market and dwelling values up, leaving homeowners with an entirely different set of choices to make.

Read on to learn more about how COVID and inflation are impacting dwelling and market values, as well as ways Central can help you determine whether your home is insured for the proper amount.    

How has dwelling coverage been impacted by the COVID-19 pandemic?

At the onset of the COVID-19 pandemic, major building material manufacturers were forced to slow or cease production as shutdowns spread across the globe. While U.S. supplies decreased, the nation saw an increase in the demand for building materials as people moved out of densely-populated cities, and into suburbs and rural areas to construct new homes or renovate existing structures. This imbalance between supply and demand drastically drove up the cost of building materials, with lumber pricing 135% higher than at the beginning of 2020. 

In addition to supply and demand struggles, post-pandemic worker shortages have impacted costs by continuing to hinder production capabilities throughout the industry. Even as material manufacturers and construction crews attempt to ramp back up, a lack of laborers and skilled workers continues to make it difficult to regain momentum and catch up with the persistent market demands. Ultimately, the challenges of these labor shortages and inflated material costs are being passed on to those building or renovating homes, driving up both market and dwelling values. 

What Does Dwelling Coverage Actually Include? 

Even in a stable market, you may find yourself wondering why you’re insuring your home for the same amount it might cost to rebuild. It’s important to remember that contracting costs include labor, materials, and contractor overhead. Insuring your home for less means you may not get all the upgrades you currently enjoy, such as granite countertops, maple or cherry cabinets, or hardwood floors. 

Learn More: How Does Your Homeowner Policy Respond To Total Losses?

Debris removal is another piece of the dwelling value puzzle that people often overlook. Most policies include coverage to remove the charred remains of your home after a fire, and the cost of debris removal is significant. Local ordinance may also require the undamaged portion of your home be removed if it sustains significant damage. Each town ordinance requires demolition when a certain percentage of damage is reached. In instances like this, your dwelling value not only covers the cost of rebuilding your home, but also the demolition of the undamaged portion, and any costs associated with hauling away debris so that your new home can be constructed.

The Central Difference

As you can see, there is more to insuring your home than one might think. We recommend reassessing your dwelling value with your agent every three to five years to ensure your home’s replacement cost remains in line with the market. 

By preparing for the worst-case scenario today, you can save yourself hassle and headaches should the unthinkable ever happen. And you can rest easy knowing Central will be right there with you at every step of the way.

Teenage employment not only helps instill a sense of financial responsibility, but may also help with developing interpersonal skills, gaining valuable professional experience, and building character. As the school year approaches its end in Florida, it might be time to discuss a summer job with your teen and review options and opportunities for success. Following are some considerations to give you and your child a leg up in the hunt.

Legal Details:

Federal teen labor laws, specifically the Fair Labor Standards Act (FLSA), set limits on the type and amount of work that teenagers can legally perform, and state labor laws generally follow these guidelines. Workers must be at least 14 years old for most non-agricultural work – click here for agricultural guidelines – and can be employed in most positions, with the exception of 17 jobs that are primarily in more dangerous fields like mining, construction, and hazardous materials handling. Kids under 14 can legally deliver newspapers, babysit, act, and work for a family business.

Additionally, 14- and 15-year-olds can work no more than three hours a day on school days, and no more than 18 hours a week while school is in session; they can work up to 40 hours a week when school is out. Working hours need to be between 7am and 7pm, except for June through August, when hours are extended to 9pm. Sixteen- and seventeen-year-olds can work unlimited hours at any job that’s not on the hazardous jobs list, any time of year.

While states are permitted to set their own minor pay standards, employers will most often pay at least federal minimum wage and are required to pay the higher wage when state and federal payment laws differ.

Though there are no federal laws requiring minors to obtain special permits to begin work, some states do require certain certifications, the specifics of which can generally be found at your state’s department of labor.

How to Help:

First and foremost, listen. Make sure your teenager is ready to work – physically, emotionally, and socially – and help them set reasonable expectations for the employment they may obtain. Finding a job may prove challenging, so be the encouragement they will arguably need along the way.

Provide guidance around interviewing. While many applications may now be completed online and resumes emailed, in person interviews are still the norm. Help your child plan for appropriate etiquette and clothing, as well as ways that they might describe their employable attributes if they lack any formal work history. Depending on the position and field, a basic review of the company’s website may also be advisable. Finally, advise persistence throughout the application process.

Talk about finances. It may be helpful to develop a basic budget with your teen and to discuss the benefits of saving, even if it’s merely for shorter term needs like a new bicycle or car. They may also need to consider tax liability, especially if they are mowing lawns or engaged in other gig work; the Internal Revenue Service’s online withholding estimator tool may be helpful when planning ahead. Having the discussion about money before it’s in their hands, sets the stage for smart choices when it is.

If money isn’t a necessity or motivator, remember that volunteering and internships also provide important life and work experience, and may prove particularly invaluable for teens with significant educational aspirations.

Regardless of your child’s employment choices, always support a healthy work/life balance and instill the importance of that now for lifelong happiness. Teenagers need more sleep than their younger and older counterparts and are developing necessary social skills during these years. Fun and free time should be of equal concern to entering the big wide working world. These may be the last few prolonged periods of freedom your teen has, particularly with your family, so make them count.

For any insurance questions, call or contact Post Insurance and Financial today.

We all know we shouldn’t text and drive, so why is it so tempting to reach for the phone the moment you hear that little ding? Just a quick glance can’t hurt, right? Wrong. 

Data from a 2020 National Highway Traffic Safety Administration study shows that 1.6 million crashes, more than 3,100 deaths, and 400,000 injuries were caused by some form of distracted driving in the year 2019 alone. In addition, more than one in four of all accidents—including 87 percent of rear-end collisions—are the result of some form of distracted driving. 

What feels like a quick check of your phone, flip of the radio dial, or reset of the GPS can easily result in injury or tragedy. 

Distracted Driving Facts To Remember

After years of PSAs about the dangers of distracted driving, it’s clear we know better than to do it—so why can’t we quit? It all stems from brain biology. 

Research has shown that 92 percent of drivers recognize the dangers of texting and driving, and support making it illegal to text behind the wheel. Nonetheless, 60 percent of 18- to 34-year-olds believe they can text and drive safely. The biological phenomenon of cognitive dissonance tricks our brains into believing that we are not subject to the same risks and dangers as everyone else. Convinced we are the exception rather than the rule, we carry on with risky behaviors while recognizing the dangers posed when others do it behind the wheel. 

In order to recognize the error in this logic, it’s important to understand what happens to our brain when we use a mobile phone. According to a behavioral health study recorded in the National Library of Medicine, talking on the phone, “our brains direct about 37 percent of our energy away from parts of brain that deal with driving resulting in “inattention blindness.” In the most basic terms, this means that you may be looking around at your environment, but you are not fully processing everything you are seeing. 

As a result of this practice, the Psychology of Learning and Motivation explains that “it’s estimated that we can miss as much as 50 percent of what is going on around us when distracted.” It’s not hard to see why this can quickly become a serious hazard when we’re navigating around pedestrians, children, pets, construction zones and other drivers—many of whom are likely distracted themselves. 

How to Prevent Being a Distracted Driver

Enroll your Teen in a Training Program

Have you heard of the teenSMART^® Driver Safety Program? The program teaches drivers to anticipate dangerous situations, recognize how risk changes as they drive, increase situational awareness, and expect the unexpected while behind the wheel. Studies show that teens who complete the program reduce their chances of being in a crash by up to 30 percent. As an added incentive, Central offers premium discounts to teen drivers who complete the program.

Learn More: Teenage Driver? teenSMART is the Smart Choice for Safety and Savings

Talk to Your Employees

Groups dedicated to changing the nature of distracted driving have worked hard to develop training materials that can be used to bridge these types of conversations with employees. This video produced by the National Safety Council, for instance, gives advice on how to coach your employees on properly and safely preparing to hit the road for work-related travels.

Take a Distracted Driver Course

The National Safety Council offers an interactive Online Defensive Driving Course, which is designed to motivate drivers to change their risky driving behaviors, as well as their overall attitudes about distracted driving.

Evaluate Your Own Behavior. 

Learn more about driver distractions and the risk you take by allowing yourself to multitask on the road by taking the official DMV Distracted Driving Quiz. 

Pledge to Make a Change

Join the millions of Americans who are vowing to take back their focus on the roads in this official DMV-sponsored online pledge. 

Driver Distraction Impact on Insurance

The safety and wellbeing of our policyholders and communities is of utmost importance to everyone at Central. Not only does raising awareness about the dangers of distracted driving support safer roadways, it also helps us keep premiums low for our auto policyholders by reducing accidents and claims. From saving lives to saving money, everybody benefits. Learn more about Central Auto coverage here.

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 Want to learn more about distracted driving? 

We all know we shouldn’t text and drive, so why is it so tempting to reach for the phone the moment you hear that little ding? Just a quick glance can’t hurt, right? Wrong. 

Data from a 2020 National Highway Traffic Safety Administration study shows that 1.6 million crashes, more than 3,100 deaths, and 400,000 injuries were caused by some form of distracted driving in the year 2019 alone. In addition, more than one in four of all accidents—including 87 percent of rear-end collisions—are the result of some form of distracted driving. 

What feels like a quick check of your phone, flip of the radio dial, or reset of the GPS can easily result in injury or tragedy. 

Distracted Driving Facts To Remember

After years of PSAs about the dangers of distracted driving, it’s clear we know better than to do it—so why can’t we quit? It all stems from brain biology. 

Research has shown that 92 percent of drivers recognize the dangers of texting and driving, and support making it illegal to text behind the wheel. Nonetheless, 60 percent of 18- to 34-year-olds believe they can text and drive safely. The biological phenomenon of cognitive dissonance tricks our brains into believing that we are not subject to the same risks and dangers as everyone else. Convinced we are the exception rather than the rule, we carry on with risky behaviors while recognizing the dangers posed when others do it behind the wheel. 

In order to recognize the error in this logic, it’s important to understand what happens to our brain when we use a mobile phone. According to a behavioral health study recorded in the National Library of Medicine, talking on the phone, “our brains direct about 37 percent of our energy away from parts of brain that deal with driving resulting in “inattention blindness.” In the most basic terms, this means that you may be looking around at your environment, but you are not fully processing everything you are seeing. 

As a result of this practice, the Psychology of Learning and Motivation explains that “it’s estimated that we can miss as much as 50 percent of what is going on around us when distracted.” It’s not hard to see why this can quickly become a serious hazard when we’re navigating around pedestrians, children, pets, construction zones and other drivers—many of whom are likely distracted themselves. 

How to Prevent Being a Distracted Driver

Enroll your Teen in a Training Program

Have you heard of the teenSMART^® Driver Safety Program? The program teaches drivers to anticipate dangerous situations, recognize how risk changes as they drive, increase situational awareness, and expect the unexpected while behind the wheel. Studies show that teens who complete the program reduce their chances of being in a crash by up to 30 percent. As an added incentive, Central offers premium discounts to teen drivers who complete the program.

Learn More: Teenage Driver? teenSMART is the Smart Choice for Safety and Savings

Talk to Your Employees

Groups dedicated to changing the nature of distracted driving have worked hard to develop training materials that can be used to bridge these types of conversations with employees. This video produced by the National Safety Council, for instance, gives advice on how to coach your employees on properly and safely preparing to hit the road for work-related travels.

Take a Distracted Driver Course

The National Safety Council offers an interactive Online Defensive Driving Course, which is designed to motivate drivers to change their risky driving behaviors, as well as their overall attitudes about distracted driving.

Evaluate Your Own Behavior. 

Learn more about driver distractions and the risk you take by allowing yourself to multitask on the road by taking the official DMV Distracted Driving Quiz. 

Pledge to Make a Change

Join the millions of Americans who are vowing to take back their focus on the roads in this official DMV-sponsored online pledge. 

Driver Distraction Impact on Insurance

The safety and wellbeing of our policyholders and communities is of utmost importance to everyone at Central. Not only does raising awareness about the dangers of distracted driving support safer roadways, it also helps us keep premiums low for our auto policyholders by reducing accidents and claims. From saving lives to saving money, everybody benefits. Learn more about Central Auto coverage here.

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 Want to learn more about distracted driving? 

With spring comes cleaning, and with cleaning comes a fresh opportunity to take on tired interiors and welcome the light and liveliness that summer ushers forth.

To make what might otherwise be a daunting undertaking manageable, attack it room by room. For each space, organize and declutter first, sorting items to be kept out, stored away, donated, or trashed as needed. This might be a great opportunity for children to become involved, particularly in sorting toys and taking responsibility for their spaces with age-appropriate chores and rewards.

It is also an ideal time to switch out wardrobes, bedding, and decor for seasonally appropriate choices. Deep cleaning carpets and any heavy linens or upholstery that makes the seasonal cut might be best done now, when clutter is at a minimum and any transitions in clothing, etc. have yet to be unpacked.

Flip mattresses in bedrooms and clean blinds throughout the home. Wipe down surfaces with a solid all-purpose cleaner, and sweep, mop, or vacuum under beds and furniture. Pay special attention to high-traffic areas, those spaces that might have been neglected during winter months, and around dust-distributing heating vents and the like.

For cleaning deep dives, consider a few of these time-tested household solutions to the most bothersome of cleaning conundrums.

• Cut through hard water stains on faucets and fixtures with half a lemon.
• Use baking soda – add salt for additional scrubbing power to achieve sparkling stainless steel sinks.
• Soak showerheads in white vinegar to clean mineral deposits.
• Spray a combination of ¼ cup vinegar, 2 cups water, and 2 teaspoons liquid soap on glass and wipe clean with newspapers for surprisingly streak-free surfaces.
• Wet dryer sheets and leave on ceramic cooktops for at least 15 minutes to loosen burnt-on food and gunk.
• Remove fingerprints and dust from TV, tablet, and computer screens with coffee filters.
• Create a paste with cream of tartar and a little water to bring the shine back to stainless steel appliances.
• Repurpose a window squeegee to remove pesky pet hair from carpets and rugs.
• Recycle old socks for use as dusting mitts or slip them over broom handles and spritz with cleaner to tackle cobwebs and hard-to-reach spots.

Finally, open windows and let the fragrant springtime breeze clean out any lingering musty odors in your sparkling new digs.

For any insurance questions, call or contact Post Insurance and Financial today.

Wed, Apr 13th, 20222022-04-13

Post Insurance and Financial

It’s a subject we hear a lot about these days in the news: Drought. According to drought.gov in March of 2022, over 58% of the lower 48 states are currently in a drought. With a collective global force greater than all other natural disasters in the past 40 years, droughts around the globe eventuate in as much deadly destruction as any other extreme weather event. Droughts can be declared in as few as 15 days and can last a week, a month, a year, or longer.

But what causes this “creeping disaster” and what, if anything, can people in a drought area do to mitigate its impact?

Drought is defined by prolonged lack of precipitation resulting in a considerable water shortage. Though naturally occurring, drought-producing conditions can be exacerbated by human activity, including water use/management and greenhouse gas emissions. It impacts developing and developed nations alike, but developing nations are far more susceptible to related damage and loss. There, drought can create water and food insecurity issues capable of further increasing problems related to civil unrest, famine, mass migration, and displacement.

The exact parameters of drought vary regionally based on normal weather and precipitation patterns for an area: tropical areas need far more rain than desert climes, so they suffer drought at a much faster rate. Drought can be traced to sources both natural – fluctuating ocean and land temperatures, altered weather patterns, high pressure, and reduced soil moisture – and manmade – climate change, excessive water demand, and deforestation and soil degradation. Additionally, droughts are characterized by their type:

• Meteorological – When rainfall is less than needed for a given region to remain stable.
• Agricultural – When water supplies fall short of meeting crop and livestock needs.
• Hydrological – When persistent lack of rainfall depletes surface and groundwater stores.

In the United States, drought is a costly and chronic reality, with at least one area of the country typically impacted at all times throughout the year. In fact, in 2012 the U.S. experienced a historic drought – the worst since the Dust Bowl of the 1930s – with nearly two-thirds of the country affected. California has a long and difficult history with drought: Decreased rainfall, combined with increased heat, in California between 2012 and 2016 caused what is considered the state’s worst drought conditions in 1,200 years. Persistent drought, particularly in agricultural hubs throughout the U.S., can likewise create problematic water shortages, inflated food prices, and a host of regional problems.

While there was no evidence that worldwide drought was increasing when the Intergovernmental Panel on Climate Change (IPCC) released its 2013 report, global temperatures have increased and, with them, the prevalence of extreme weather patterns and events, such as drought. This, in turn, reduces snowpack and other stores that provide some protection against drought. In essence, the polarities are becoming more extreme: dry regions are becoming drier and wet regions, wetter. If temperatures continue to increase, these trends will as well.

So, while the weather might be uncontrollable, human actions are not. Doing our part to mitigate climate change by reducing our carbon footprints, while augmenting water conservation efforts with widespread recycling and reclamation, increased stormwater capture, and improved agricultural sector water management – will all help to shift the trajectory of future extreme weather patterns like drought.

For any questions, call or contact Post Insurance and Financial today.