Restoration Rewind

Delta Development Group Monthly Newsletter

June 2014

90 days and Rolling…

The Delta network is celebrating another birthday, Delta Disaster Services of Southeastern PA has reached their 90 day anniversary! The group has been busting at the seams since about 10 days before their grand opening so it was no surprise that their first 90 days would fly by.

The group has been working non-stop and has hired 3 new employees since opening their doors in February. Owners Erik and Faith Bones are ecstatic about the progress of their new business and are constantly working to keep that business coming through the doors.

As with all 90-day anniversaries, Michael Mastous was at the Delta Disaster Services of Southeastern PA facility to give a CE Class to local agents and adjusters. Delivering a “Fire Loss – A Case Study” class, the attendees were all very pleased with the information the class had to offer and will be attending many more classes held by the

office. The group was very fortunate to have referring agents in their class. A number of the agents that attended the class have already referred business to the office. With those referring agents being able to get the value of the continuing education classes

we offer, they will continue to see the value of a relationship with Delta Disaster Services. By not just giving and giving, but also being able to receive services from the Delta group as well those agents as well as the agents referring to any of our offices will appreciate and nurture these relationships.

State-run insurer starts claims program with Home Depot

Advocate staff report, May 05, 2014

Louisiana Citizens Property Insurance Corp. will connect its policyholders with experienced, licensed and insured local contractors in a program with The Home Depot.

The free and optional Property Pro-Net service is designed to streamline the traditional claims-adjusting and repair process, according to the state’s property insurer of last resort. Network contractors will work with Citizens to estimate repair costs. Work can usually begin within a matter of days. Citizens customers also have the option of going to a Home Depot to select materials for the repairs.

“The idea is to make property repairs quicker, easier and hassle-free”, said Quin Netzel, Citizens’ chief claims officer.

When a homeowner uses the service, a certified contractor, who is prequalified, is sent out within hours of a loss to provide emergency services for roof repairs, board-up and water removal. Once a policyholder pays his or her deductible, Citizens pays the contractor directly for the covered repairs.

Property Pro-Net contractors are required to pass background checks, financial strength analysis, license verification and meet required levels of insurance. The service — at ProNet.LaCitizens.com — offers a two-year warranty on the contractors’ workmanship and labor.

Time flies! It is grand opening time! This week the Delta Development Group corporate

team will be in Grand Junction to celebrate the grand opening of our 7th franchise

location and the office that officially sells out the state of Colorado. The office formally

opens its doors, Wednesday, June 4, 2014 with a huge celebration and ribbon cutting at

their new facility. Located at 584 N. Commercial Drive Grand Junction, CO 81505, the

festivities will kick off at 11:00am, with a ribbon cutting presented by the Grand Junction

Chamber of Commerce at approximately 12:30pm. The drive is a little long, but the

party will be worth it as the list of invitees reached up to 400 at one time. We would love

to see everyone there, but if you can’t make it don’t forget to send your congratulations

to Bruce, Tyler and Amy Milyard. As always we will take tons of great photos and share

them with you in the next newsletter edition.

Marketing News

Part of Delta Development Groups franchise selection process is to make sure that we bring on board well-established contractors within their market area. In doing this, we increase the chances of success greatly. We are bringing in an established general contractor who is well-known and reputable in their given market area. One of the reasons, amongst many, that we chose this route was the secondary referral business brought in through associates and people that already know a given contractor in a market

area. Many of our locations have gotten a “jumpstart”, by having people refer to them that know of them already.

Sustainability and growth to match the Denver office’s business model require something more than that. (I just received a referral this past weekend from someone that knows me, personally.) In eight years in the Denver market we have received about five of these referrals. What has built the Denver office, and will build your office throughout the years will be to attract referral sources that can repeat on a consistent basis. I see some complacency among some franchises that feel that their association and reputation in their marketplace will help them build their business. Do not be fooled! In order to sustain growth, and build a multimillion dollar restoration firm, you need to constantly make cold calls to referral sources that we know will help you build your business.

Michael Mastous

Insured Loss Estimate for April

U.S. Storms in Hundreds of Millions

A person lifts debris in Vilonia, Ark. on April 30, 2014. (AP Photo)

Now it’s official. April’s thunderstorms were big.

The series of storms that wreaked havoc across much of the United States in April rank as the first billion-dollar economic loss event of 2014 that can be attributed to convective thunderstorms, according to Aon Benfield’s monthly Global Catastrophe Recap report, released Wednesday. At least 39 people

were killed by flash flooding and severe weather during the storms, which included nearly 70 confirmed tornadoes across more than 20 states in the Plains, Mississippi Valley, Southeast, Midwest and Mid-Atlantic regions.

Insured losses due to the multi-day outbreak will likely end up in the hundreds of millions of dollars, Aon Benfield said.

“The recent outbreaks of tornadoes, large hail and damaging straight-line winds in the United States have emphasized the importance of historical data analysis for insurers and reinsurers when trying to forecast future losses,” said Adam Podlaha, head of Impact Forecasting with Aon Benfield, in the report.

Delta Disaster Services on the Lacrosse Field

The Delta Disaster Services name made an appearance outside of basements and crawl

spaces in Pennsylvania. As a sponsor of James Bones’ youth lacrosse

team, they will for sure be kicking butt and taking names DELTA STYLE!

Subcontractor Compliance:

Subcontractor Compliance actually does come under the guise of Financial Advice! Without proper compliance, you run the risk of exposing your business to numerous financial risks. Below are just some reminders of what is needed and why you must have these documents in order to properly comply with government regulations:

1. Subcontractor Agreement. Should you have a dispute with a subcontractor, this simple contract along with your DMS Work Order will be necessary to prevail in court. The first document the judge will ask for is the “contract”.

2. Work Order or some written instruction as to what the work was the subcontractor was to perform. In the Denver office when a work order is issued from DMS, we always include the language “per scope of work”. This has been tested in the field and to date has been successful.

3. Subcontractor Insurance. The Subcontractor Agreement spells out what our recommendations are for your subcontractor’s insurance. IF the subcontractor does not have insurance, you and your insurance will be responsible should something happen. a. General Liability: Required should the subcontractor damage the customer’s home or create some type of “liability” that you would be responsible for in the future. For example: The subcontractor leaves material on the job site and it falls and

damages another part of the home. b. Automobile: Certainly recommended! Depending on the laws of your

state, you and your company can be included in a suit just because the subcontractor was going to a job site controlled by you.

c. Workman’s Comp: You want to speak with your insurance agent or broker regarding your state specific workman’s comp requirements. In Colorado (and the majority of states), the subcontractor must have either workman’s

comp insurance or sign an affidavit that they are a sole proprietor and exempt from having workman’s comp insurance. Your workman’s comp carrier will audit your workman’s comp at the end of the policy year and you will be charged workman’s comp on any subcontractor that does not meet the state requirements.

4. W-9: Required by the IRS. You are also required to furnish the subcontractor a 1099 no later than January 31 for the prior year tax filing. That W-9 will also assist you should the IRS want to declare the subcontractor an employee.

5. Background Affidavit: This has become a best practice for the Denver office. This affidavit will not completely release you of liability should the subcontractor be involved with some criminal activity on a job site; but will certainly help to show that you hired this person in good faith.

6. Subcontractor IRS Guidelines: Make sure to follow these guidelines to ensure the sub remains a subcontractor and does not become an employee simply because of direction that you have given them.

Keep copies of all subcontractor documents and be sure to update insurance certificates on an annual basis. Read the Subcontractor section of the Operations Manual. This will especially help you with determining what you can and cannot require a sub to do before they reach “employee status.”

Please call or email Delta Development Group with any questions about subcontractor compliance. This really is a part of protecting your business and your future.

American Lung Association

State of the Air Report

The American Lung Association's "State of

the Air" Report has been released. It lists

Clark County as the 10th worst area for air

quality in the USA. And while many well

intentioned health care providers will advise

you to remain inside, they are not aware of

the EPA studies that indicate indoor levels of

air pollutants are generally 2 to 5 times

higher than outdoor air and in some instances, 100 times more polluted. The effects of indoor air quality at home and in business is one of the largest factors in sickness and employee absenteeism. Good news is there are

solutions to help!

And we will leave you with this…

“How foolish you would be to start on a journey without knowing where you wanted to go. Have you ever sat down and

seriously drawn up a plan for your life? Have you ever deliberately mapped out where you want to go during your

life’s journey? Now, isn’t your life infinitely more important to you than any journey you may take? Why, therefore, not devote the most earnest effort to plan your life, to set for

yourself a goal?”

B.C. Forbes