Buying a home can trigger so many emotions. Excitement, nervousness, hopefulness, and fear all jump on the wagon at certain points throughout the journey. But as with most things in life, learning and getting the facts can help ease our fears, enabling us to make wiser decisions.

Our website is a valuable resource for articles on a variety of financial topics, including real estate and home ownership. In this blog, we tackle the topic of homeowner’s insurance.

What is homeowner’s insurance?

When you own a home, you usually need to purchase a policy to protect the property. Though not required by Virginia law, your mortgage will require it. And even if you don’t have a mortgage, it’s an important safeguard against financial loss.

A homeowner’s insurance policy is designed to protect homeowners from financial loss due to damage to their property or personal belongings. In addition, it covers liability for accidents that occur on their property.

Homeowner’s insurance covers risks like fire, theft, and some damage from storms and can help to cover costs for repairs. Each policy is tailored to the home itself, based on its location, size, materials, and risks. Coverages can vary based on the company and your specific policy. Let’s take a closer look at what homeowner’s insurance policies typically cover.

What does homeowner’s insurance cover?

If you’ve had renters’ insurance in the past, you’ll know that renters’ insurance coverage is limited to personal belongings and liability if someone is injured in the rental. Homeowners’ insurance is a bit different. It does cover your personal property and liability, but its most important job is to cover the home itself.

Most homeowner’s insurance policies contain the following coverages:

• Dwelling: This will cover the cost of damages to the structure of your home, including walls, roof, and foundation, when caused by events like fire, storms, or vandalism.
• Other structures: Covers other structures on your property that aren’t part of your home, such as detached garages, sheds, and fences.
• Personal property: Like renters’ insurance, home insurance can cover your belongings, from furniture to electronics, if they are damaged, stolen, or destroyed in a covered event. However, highly valuable collectibles and jewelry might need an endorsement (also called an “add-on” or “rider”) to cover them.
• Liability: This coverage protects you from lawsuits if someone else (not anyone who lives in the home) is injured on your property, or if you, a pet, or a family member cause damage to another property. A classic example of the latter is if your child were to hit a baseball through your neighbor’s window.
• Medical costs: Pays for medical expenses of guests injured on your property—up to a certain limit.
• Additional Living Expenses: If you are unable to stay in your home due to covered damages, ALE coverage can pay for temporary living costs, like hotel bills and meals.

What is not covered by homeowners insurance?

Homeowners’ insurance covers a wide range of potential expenses—even ones that may not seem to be directly related to your home (like some personal liability claims). But it doesn’t cover everything, and depending on where your home is located, it might be wise to purchase add-ons to insure your property is protected.

Homeowner’s insurance typically does not cover:

• Flood damage: Damage caused by floods usually requires separate flood insurance. If you live in a flood zone or an area prone to flooding, you’ll want to get an additional plan. You can look up your home’s flood risk on FEMA’s Flood Maps.
• Earthquake and sinkhole damage: Earthquakes and sinkholes are also not covered unless you purchase additional insurance. Minor earthquakes are common in Virginia, with almost 200 occurring within the last 50 years. Additionally, many parts of the Shenandoah Valley are more susceptible to sinkholes due to limestone substrate.
• “Wear and tear”: Whether from normal use and exposure or issues with maintenance, wear and tear is expected and not covered.
• Mold damage: Because mold often occurs because moisture isn’t managed properly, it is usually not covered.
• Sewer backup: While you can often add sewer backup coverage, water and other damage from sewer backups is usually not covered.
• Intentional destruction: If you or a family member living in your home damages the property intentionally, it won’t be covered.
• Valuables: As we mentioned above, very expensive items like jewelry, art, or collectibles may not be fully covered without additional riders.
• Home business: You’ll need separate coverage to protect your home business’s property, like equipment.

Every policy will lay out what it covers and what it doesn’t. If you have concerns about coverage for your home or property or aren’t sure how much insurance you need, your insurance agent can help you sort through your risks and requirements.

How do insurance companies determine premium costs?

When an insurance agency creates a coverage plan, they will review details including your home appraisal, property taxes, how and when the home was built (and with what materials), recent improvements, and other property details and risks.

This serves two purposes: determining risks for insuring your home (like older wiring or fireplaces) and knowing how much it will cost to repair or replace your home and the items within.

Some things that might increase your premiums include:

• Having an older home: It may be more expensive to insure an older home not just because they may be in worse repair but also because they tend to be better-constructed, with quality materials like brick and stone, which will cost more to replace.
• Location: Homes in areas prone to natural disasters are generally more to insure.
• Fireplaces and swimming pools: Anything that increases risk for damage or liability will increase your premium. Because wood-burning heating sources increase fire risks, your premium costs will go up if you have one. Swimming pools can create liability risks and may also result in higher premiums.
• Dog breeds: Some dog breeds, especially larger ones that are prone to biting and attacks, may impact your rate.
• Bad credit: Insurers often consider your credit score when setting premiums.

Things that you can do to lower your premium:

• Increase your deductible: Higher deductibles usually mean that smaller issues won’t be reported for a claim, saving your insurance company. They will pass this savings onto you through lower premiums.
• Bundle your insurance policies: See if you can get a lower rate when you use the same company for other insurance needs, like car insurance.
• Improve home security and safety features: Installing smoke detectors, security alarms, and even deadbolt locks may help lower your premium.

How do they know how much my home and property are worth?

Insurance companies can’t know for certain how much everything in your home will cost to repair or replace, but they do have some pretty sophisticated methods for estimating it.

Here are a few methods insurers use to determine how much things are worth.

• Appraisals: For valuable items like jewelry or art, an appraisal helps determine their worth for coverage or payout if they’re damaged or stolen. Your home’s appraisal may also be used to determine its replacement cost.
• Actual Cash Value (ACV): This is what your damaged or lost item is actually worth today, factoring in age and wear. For instance, a five-year-old laptop’s cash value will not be its purchase price but rather what it is worth based on its age and condition.
• Replacement Cost Value (RCV): RCV covers the cost to replace a damaged or lost item with a new one of similar quality without considering depreciation.
• Extended or Guaranteed Replacement Cost: This covers the full cost to rebuild your home, even if it exceeds your policy limits (usually up to a certain percentage).

When you look at your premium details, you might notice there are different designations for value and replacement cost—especially regarding your home. This is because homes often cost more to replace than their market value—especially older, well-built homes.

How does my deductible work?

A home insurance deductible is the amount you must pay out of pocket first—before your insurance company covers anything. For instance, if you have a $2,000 deductible and a tree falls on your roof resulting in $5,000 in damage, your insurance would kick in after you pay the first $2,000. Usually, you’ll pay your deductible directly to whomever is making the repairs, and your insurance company will pay the balance.

Higher deductibles usually result in lower premiums. If you rarely file claims, your home is less risky, or you can cover small repairs out of pocket, a higher deductible could save you money.

I’m buying my first home. How do I get homeowners insurance?

There are many options for insurance, and ultimately there are pros and cons with each option. Your mortgage broker can often help identify best-fit options for you, as well as those with streamlined processes that will help make the entire home-buying process seamless and easier.

How do I pay for homeowners insurance?/How is home insurance factored into my mortgage payment?

For many, if not most, home buyers, expenses such as property taxes and homeowners insurance are bundled up as part of their mortgage payments. This is especially true for government-backed mortgages and for those where the buyer has put 20% or less down.

Bundling taxes and insurance with your mortgage payment can be beneficial as it streamlines the process, requiring fewer checks each month.

How can I get a discount?

Simply put, ask. Discounts are available for many different reasons, and finding out what you might be eligible for can be challenging on your own.  Discounts for seniors, veterans, and first-time home buyers are common; discounts for teachers and healthcare workers might be available too based on the company you go with. When in doubt, speak up and ask.

How do I file a claim?

Different insurance providers have different processes, but most offer online and telephone options that provide the ability to start the claims process in a matter of minutes.

Understanding the claims process can also be an important determining factor in your choice of providers. Feel free to ask questions about the process and get comfortable in advance because often claims are filed at a time where “one more hassle” really isn’t what you need.

Home Is Where Memories Are Made

For so many, owning a home is a big part of “the American Dream,” and where better to own one than right here in what we’ll argue is the most beautiful spot on earth, the Shenndoah Valley? Whether you’re just getting started on your home hunt or you’ve already identified the ideal property, right now is the ideal time for a conversation with F&M Bank and F&M Mortgages.

F&M Bank Welcomes Kevin Saylor as New Commercial Relationship Manager for Rockingham County

 

Timberville, VA (10/11/2024)   FOR IMMEDIATE RELEASE – F&M Bank is proud to announce the addition of Kevin Saylor as our new Commercial Relationship Manager, serving Rockingham County and the surrounding areas. Kevin will be based out of the Crossroads Branch and will work with clients in Harrisonburg, Rockingham, and Shenandoah Counties.

Kevin brings a wealth of experience in sales and client relationship management, making him a strong fit for this role. His expertise, combined with his deep local connections, ensures he will provide the level of personalized service that F&M Bank is known for.

“The people I have met here before I even began my first day have been warm and welcoming,” Kevin shared. “Growing up in Grottoes, I have always wanted to positively contribute to the community. F&M has been a longstanding bank in our area, and I am thrilled to be a part of it.”

Kevin’s approach to commercial banking is centered around genuine partnerships. “My focus is on providing responsible guidance for our clients’ financial needs, remaining attentive to their questions and concerns, and building trust through authenticity and transparency. My goal is to cultivate strong, long-term relationships where clients feel confident in both my expertise and F&M Bank’s commitment to their success.”

“We are excited to welcome Kevin to our team and see how his insights will help us cultivate lasting relationships and achieve success together,” said Katherine Preston, Senior Vice President & Valley Market Executive. “His passion for our community and dedication to serving local businesses aligns perfectly with our mission to support and uplift the Shenandoah Valley.”

For more information or to connect with Kevin Saylor, please reach out to him at ksaylor@fmbankva.com or visit our Crossroads Branch.

 

About F&M Bank

F&M Bank Corp. is an independent, locally owned, financial holding company offering a full range of financial services through our subsidiary, Farmers & Merchants Bank’s (F&M Bank) fourteen banking offices in Rockingham, Shenandoah, and Augusta counties, Virginia, and the cities of Winchester and Waynesboro, Virginia. The Company also owns F&M Mortgage, a mortgage lending subsidiary, and VSTitle, a title company subsidiary. Founded in 1908 as a community venture to serve the farmers and merchants of the Shenandoah Valley, where both the Company and the Bank are headquartered, F&M Bank remains more committed than ever to the success of the agricultural industry, small business ventures, and the nonprofit sector. F&M’s values, which are gregarious, resolute, original, and wholehearted (G.R.O.W.), combined with our brand pillars of sustenance, security, and enrichment, shape the Company’s decision-making, philanthropy, and volunteerism. The only publicly traded organization based in Rockingham County, we offer a diverse suite of financial products and services and a strong team dedicated to living our mission of being the financial partner of choice in the Shenandoah Valley, both today and tomorrow, as we have been since 1908. Additional information may be found by visiting our website, fmbankva.com.

 

Media Contact:

Jacob Mowry

Vice President, Marketing Manager

F&M Bank

jmowry@fmbankva.com

Running a small business can be challenging. Knowing what metrics to track can help you get on the right path and stay there. In this article, we’ll explain the most important metrics you can measure for your small business in Virginia.

Track Sales Revenue

Knowing how much money you’re bringing in is vital for any business. Revenue, also known as top-line income, means the amount of money your business makes before deducting expenses.

Tracking your sales revenue on a month-over-month basis can help you measure your business’s success and ROI on marketing campaigns. It will also alert you to signs that your sales have started declining.

How to track sales

• Define the steps involved in your sales process. What needs to happen before a deal gets closed?
• Use a CRM (Customer Relationship Manager) to keep track of leads and where they are in the sales funnel.
• Prioritize a quick response to online form submissions.
• Based on the data you collect from tracking your sales, look for ways to increase the number of sales you make.

Customer Acquisition Cost (CAC)

Of course, increasing sales doesn’t come without costs. That’s why our next metric looks at the cost of acquiring each new customer. This includes sales and marketing efforts, as well as physical assets (property, equipment, etc.) required to close a sale.

To calculate Customer Acquisition Cost, divide Total Marketing Costs (MCC) by Total Customers Acquired. This will give you the estimated cost of each customer acquired.

You can compare the cost per customer to the lifetime value of customers. A good rule of thumb is to spend no more than 33% of lifetime value on customer acquisition.

If you find you’re spending too much on acquiring a new customer who gives your business limited lifetime value, you can try reducing your marketing spend and focus on customer retention and upsells instead. Make sure you’re giving customers a reason to return to your business again and again.

Net Profit Margin

Net profit margin, also known as net margin, measures the percentage of sales revenue that becomes profit. This is an important indicator of your business’s financial health. Calculating net profit margin will help you evaluate the success of your marketing and sales efforts and forecast future profits based on sales revenue.

To calculate net profit margin, subtract the costs of doing business (cost of goods sold, operating expenses, interest, and taxes) from revenue and then divide that number by revenue, multiplying by 100 to convert the answer into a percentage.

When it comes to net profit margin, 10% is considered good and 20% is high. If your margin is lower than 10%, look for ways to improve it. In general, this requires you to find the right balance between increasing sales (which takes a certain amount of investment) and reducing expenses (which can lead to bad outcomes if taken too far).

Customer Retention Rate

This metric tracks the percentage of customers who buy from you more than once within a given time period. Customer retention is an important metric to track because gaining new customers is more expensive than retaining existing ones. And the more engaged your customers are, the more likely they are to try new products or services and keep spending more money on your business. This is why just a 5% increase in customer retention can increase profit by 25% or more.

To calculate your customer retention rate, (((CE-CN)/CS)) X 100.

• CE = number of customers at the end of a defined time period, such as 1 year
• CN = number of new customers acquired during the same time period
• CS = number of clients at the start of the time period

If you want to improve customer loyalty, work on providing better customer service and offering the highest quality products or services.

Gross Profit Margin

Gross profit margin is related to your gross profit, but it looks at your financial profit as a percentage. Tracking your gross profit margin will help you truly understand how your business is performing. If your gross profit margin continues to climb over time, it’s a good indicator of financial health. The higher your gross profit margin, the more you are keeping from each sales dollar (as opposed to the costs of doing business).

You can calculate gross profit margin by subtracting the cost of goods sold from net sales and then dividing that number by net sales.

If you want to increase your gross profit margin, look for ways to reduce operating expenses while maintaining pricing or increase prices without also increasing the cost of doing business. Where can you add efficiencies or boost productivity?

Customer Conversion Rates

This metric looks at the number of leads or prospects who turn into paying customers. Customer conversion rate can help you assess your sales team’s performance or the quality of the service or product you offer.

To calculate customer conversions, divide monthly new leads by monthly new customers.

With a low or stagnant conversion rate, there are some variables you can look at:

• Products or services offered
• Sales staff
• Website experience
• Social Media prescence
• Customer reviews

About Section

Headquartered in the Shenandoah Valley, F&M Bank is proud to be a Virginia tradition since 1908. We are committed to the success of our small business customers, including agricultural operations, nonprofits, and other business ventures. Learn more about our business banking solutions and contact us to learn more about how we can help your company grow and thrive.

Teaching your kids about money early on is always a smart move, but educating them about charitable giving is one of the most important ways to help them develop as compassionate, thoughtful members of their communities.

A recent study found that nearly 50% of those who donated more than $5,000 each year had experienced strong giving traditions within their family as children, so what you teach early on has a real impact later.

If you’re looking to encourage your family with some fun charitable giving this holiday season, take a look at our suggestions for how to get started.

Teach Empathy

The foundation of generosity is the ability to empathize with those around you, especially people who may be living in very different circumstances to your own. Start teaching kids this when they’re young, even before they go to school.

Some of the best ways to teach empathy to small children are making them aware of their own feelings and those of others. Make suggestions for helping other people, such as “let’s get your friend a bandaid for their cut” or “I think they’re sad because they lost their toy, let’s get them another one to help them feel better.”

“I feel…” statements are also a good way to teach self-awareness, along with reading books about feelings and openly discussing these as a family.

Lead By Example

Children are often visual learners, so leading by action is one of the best ways to teach a charitable mindset. When you take time to give back and do this frequently, your children will notice and copy your actions. Once you make giving and volunteering a regular part of your life, they’ll naturally start to pick up the habit too.

Include your children in volunteer activities where possible, even something as simple as taking unwanted items to a donation center. Make charitable giving an ongoing conversation in your household.

Talk about times that you’ve helped give back to others, and educate your children on the idea of being fortunate and what that means. You can also explain to them the different ways people can be helped and how both time and money can be valuable resources for those in need.

Adopt a Child for the Holidays

During the holidays, many large organizations (and some local charities too) organize “Adopt a Child” and gift giving events. The Salvation Army Angel Tree is a good example of this, where you can purchase clothing or toys for children in need.

You could also consider sponsoring a child in your community or abroad during the holidays or throughout the year. Organizations like ChildFund help children in 23 countries receive necessities like food, healthcare and education.

Explore Donating

Another option for teaching children a charitable mindset is donations. Collect their old toys once they’ve outgrown them or ask them to choose a toy or two that they no longer want and give them to a local children’s hospital. This is a great way to build empathy in children by helping them connect with other children around their age.

Clothing donations are also good donation opportunities. The SAW Style Clothing Event for Staunton, Augusta, and Waynesboro students regularly helps hundreds of families in the area with essential clothing items all year.

Similarly, a “Stuff the Bus” school supply drive is an excellent way to support local children with their education. The Salvation Army in Staunton and West Augusta County, along with Waynesboro, run these events every year during back-to-school season.

Having a donation box somewhere in your home, particularly somewhere visible like by the front door, can help reinforce a charitable mindset. Encourage your children to routinely go through their belongings and find items they can part with and add to the donation box. Once the box is full, take your items to a donation center together to help children see the impact of their giving.

Seek Out Volunteer Opportunities

For a more hands-on experience, look for volunteering opportunities that your children can participate in throughout your community. Matching volunteering roles with your child’s interests will help them stay engaged for longer, while still educating them on the importance of giving back.

Soup kitchens, shelters, local places of worship, libraries and schools all frequently need volunteer help for a range of activities and initiatives. For animal-loving children and teens, the Shenandoah Valley Animal Service Center takes volunteers for dog walking, grooming and cleaning all year round.

Positive reinforcement, especially for activities that take time out of their free schedule, is essential for encouraging this charitable behavior. If you see your child doing something helpful for someone else, be sure to praise them and let them know that was a kind action to take.

Divvy Up Allowances

If you give your child a weekly or monthly allowance, this is the perfect opportunity to teach a lifelong lesson about the value of money, hard work, and giving.

Consider a three-bucket approach for your children’s money—some for spending, some for saving, and some for giving. For younger children, you can suggest causes that they may want to give to, while older children should be free to make their own choice.

Labeled jars can be a useful visual, especially for younger children, to reinforce the goal of splitting their money this way. The Greenlight debit card for kids and teens is also a good way to digitize this approach to money. Within the app, allowances can easily be divided into save, give, invest and spend categories.

Be Neighborly

Charitable giving can, and should, start close to home. Encourage your kids to help your neighbors, particularly elderly ones, with outdoor chores like raking leaves, shoveling snow, or bringing in their heavy grocery bags.

Baking or cooking for your neighbors, especially around the holidays, is a fun opportunity to share food together and brighten someone’s day. Make a pie for Thanksgiving or take a box of holiday cookies over to your neighbor to let them know that you and your children are there for them.

For younger children, “I spy” games while you walk around your neighborhood can be a fun way to encourage them to find places that could use some attention. Picking up litter or cleaning up a spill may not sound fun to a little kid, but making it into a game can quickly incentivize them.

Give Back All Year Round

It’s always important to teach your children about giving back to the community they’re a part of. But your charitable giving doesn’t need to be limited to the Shenandoah Valley.

A giving mindset should be something you’re always thinking and talking about with your family, even when you’re on vacation or away from home. Encourage them to empathize with anyone they meet, wherever that may be, and talk about ways you can support others in need all year round.

Easily move money between your F&M Bank accounts and your accounts at other banks.

Account to Account Transfers, or A2A Transfers, is a transfer of funds between your account with one financial institution and your account at another financial institution.

• Automate your savings with recurring transfers
• Securely transfer funds between business and personal accounts
• Send funds to your college student

How does it work?

F&M Bank’s online and mobile platform allows you to enroll external accounts with ease.  Newly enrolled accounts will need to be verified before they can be used to transfer funds.

1. Select Transfers from the main menu, or dashboard on F&M Mobile.
   

   

2. Select +External account from the Transfers screen.
3. Choose a situation and follow the corresponding steps.
   • Your institution uses multifactor security questions (MFA) to authenticate users. When prompted for the security question, answer it and select Submit. OR
   • Your institution uses two-factor authentication.  When prompted for your password, enter it and select Submit.
4. Complete the Account name, Routing no., Account no., and Account type fields on the Add external account screen.
5. Select Submit.
   • If the account is eligible to send inbound transfers to accounts in Banno Online, a message appears saying that two small deposits have been sent to the account and will arrive in 3-5 days.
     

     

   • Select OK.
   • Verify your deposit amounts after they appear in your external account(s) to activate external transfers.
     

     

 

Account to Account Transfer FAQs

• How much does it cost?
  • Inbound transfers (money coming into your F&M Bank account) are free.
  • Outbound transfers (money leaving your F&M Bank account) will incur a $1.00 charge per transfer.
• How much money can I transfer?
  • Customers can transfer up to $6,000 into their F&M Bank account(s) per day.
  • Outbound transfers are limited to $2,000 per day.
• When can I make transfers?
  • The external transfer cutoff time is 3:00 PM.  Any transfers submitted after 3:00 PM will be processed on the next business day.
• How much will the verification amounts be?
  • These micro-deposits will range from $0.01 to $0.99.
    • Clients will have 3 attempts to verify these amounts before needing to begin the process.
    • Micro-deposits not verified within 31 days will no longer be eligible for verification and the customer will need to restart the process.
• How is this different from Zelle?
  • Zelle is a great platform for sending quick payments to another individual.  Account to Account Transfer allows you to send funds between account you own at different financial institutions.