The top 10 things I'm grateful for

So often we tend to look at what's wrong, sad, bad or depressing in our lives. Instead, if we look at what's right, happy, good, uplifting, joyous, fulfilling, energizing and motivating we would make it a better world just because of our positive energy. (And did you notice I have many more 'good' words than 'bad'?)

So, I am using this final post of 2008 to share the things for which I am most grateful:

1. Mike is, of course, number 1. He is my best friend, husband of many years, business partner, cheerleader and encourager. He has a quiet sense of humor and makes me laugh.
2. Our sons Sean and Brian. I'm proud to be their mom and even prouder to see what great husbands and fathers they have become.
3. Amy and Jill, our daughters-in-law, who have enriched our family more than I could have asked for.
4. Olivia, Tyler, Payton and Josh. Grandkids! They help me see the world through young, eyes-wide-open, eyes and I love them each dearly.
5. My mom who just turned 80, my life mentor who taught me how important it is to consider others' feelings and needs. I don't see her often enough.
6. My sister, Kathy, who has always been there for me and still today is one of my biggest fans. We live 5 hours apart and I miss her.
7. Friends from years past. Each brought something valuable into my life and there would be a void if I hadn't known them.
8. Friends who are currently in my life, acquaintances who are just becoming friends and those whom I have yet to meet. Thanks for coming along for the ride!
9. My "electronic" friends who read my blogs and newsletters, who are on Twitter, Smaller Indiana, LinkedIn, Facebook, Plaxo and other social sites. Though we most likely won't meet f2f, I read their posts, enjoy our conversations, and appreciate the support and friendship they provide. I'm grateful that I've found this whole new world of friends that are just as valuable and meaningful as any other.
10. Fellow networkers who have become friends and business associates. They keep me motivated, provide support, share ideas and refer business to us.

You might be thinking - isn't she grateful for her business? Yes, I am very grateful for our home inventory business. We wouldn't be here today without those mentioned above. Likewise, the recent launch of the Hartman Inventory Systems turnkey package is something I'm extremely grateful for. I'm grateful that Mike and I have the ability and fortitude to have created it. It will provide the opportunity to help others own a company that will, in turn, help others!

But the top 10 have to be people. People who impact my life, who allow me to give of myself and offer the same in return. People are what life is about. For without these people, nothing else would matter.

What are you grateful for?

Economy, reduced credit will make it harder for businesses to recover

Most business owners are experiencing the pinch of the slow economy. Many are feeling the pain of lessened lines of credit and reduced limits on credit cards. These instances will make it harder to recover from a fire, theft or natural disaster.

Consider what would happen when you have to file a claim. An inventory of the company's assets will provide the information the insurance company needs, allowing you to file your claim quickly. Usually within 48 hours.

Without this information immediately available, what will you do while you're spending time (the norm is 4 months, minimum) compiling a list for your initial claim? Will you have enough funds to purchase what's needed to re-open? Most likely, you'll have to rely on available credit or a loan. If you don't re-open immediately, how long can you wait? How long will your employees wait to start receiving a paycheck again? How long will your customers wait before they seek a competitor?

Consider investing in an inventory service to have your contents recorded quickly, efficiently and professionally. The cost is pennies compared to what you could lose.

A neighbor's problem can easily become yours

My son, Sean, called me while traveling in Pennsylvania last week. He was driving by a retail center where the middle store had extreme fire damage. But what really jumped out at him was that the other stores were also closed and all the windows boarded up. Every store was out of business (permanently or temporarily, he didn't know) due to smoke and water damage.

This made him think about our business and how important it is for people to remember that even though they might believe it won't happen to them, it is highly possible it will happen to a neighbor. And the neighbor's problem can easily become yours. For example, a friend of ours lived in a small, quaint town in a neighborhood with small lots and houses built close together. His neighbor's garage caught on fire. All the siding of his house was melted and near burning stage when the fire department arrived.

Take precautions, whether you live in an apartment, a home and/or own your own business. An inventory is essential for proper recovery.

You DO own enough to bother with an inventory

It is so important to have an inventory of your personal property. People who don’t have a lot of fine art, collectables or expensive, high-end electronics often think they don’t have enough to warrant an inventory. You’ll see it’s well worth your time or money to have this information available in case you have a fire, theft, or natural disaster.

First, why do you have insurance? Because if you have a loss, you'll need money to recover. Therefore, since you have insurance, you must value what you own and would like to have it replaced.

If that time comes when you need to file a claim, you will need to complete a list of everything you lost, what you paid for it and when you bought it. Could you do that, even if you ‘don’t have much’? Answer these questions: how many CDs and DVDs do you have? How many items of clothing? How many pair of shoes?

Here’s a task for you - count how many pair of shoes and how many clothes are in just one closet. Then count the CDs throughout the house or apartment. Most likely you will have underestimated how much you own. If you don’t ask for the right amount, you won’t get it!

One of our customers thought he had around 300 CDs. After counting them, we found he had 527! That’s an underestimation of 227. Take that times $13, and he would have not listed about $3000 worth of CDs! A college student reported a theft of just 30 CDs. He was asked to list them by title. He couldn’t remember all of them. Both of these situations show how important it is to have an inventory – even if you don’t think you have enough to bother.

What if you forget about a leather jacket? That’s usually at least a $300 item. Let’s say you filed a claim in July. It took you quite a while to settle with the insurance company (it normally takes 4 to 12 months to complete the claim if you don’t have an inventory). You kept remembering more and more items, so the claim remained open until your year deadline approached. So now it’s July of the following year, and you receive your insurance check. You purchase what you need (or more likely pay off the credit card you used to buy what you needed during this year). A few months later, the weather starts to get cold and you open your closet for your leather jacket and…you don’t have one! That’s one of the items you forgot to claim.

The settlement money is gone, the claim is closed, and you realize you’ll never recover that $300. This scenario can be played over and over for most items in a house, apartment or business. Of course you’ll remember the sofa, bed, dressers, etc. But what about the clothing, linens, CDs, DVDs, VHS tapes, jewelry? The list can go on and on.

Now do you think you don’t have enough to bother with an inventory? Document your belongings or hire an inventory service provider. The investment in time or money is well worth it.

Your responsibilities after a loss

There is a great deal of uncertainty about what happens after one experiences a loss. Most people state that they just don’t know how they are going to recover. For the coverage on the contents of your home or business, the personal property policy outlines what you will need to provide to receive your insurance settlement.

There is standard verbiage found in most insurance policies, provided by The Insurance Services Office. Under the heading of Duties After Loss, you’ll find, “In case of a loss to covered property, we have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us.”

Further, they continue, “Prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the inventory.”

It also states that they (the insurance companies) have no duty to provide coverage if you fail to comply with their requirements. The requirements can be performed by you or a representative (an inventory service provider, for example).

You must notify your agent or the insurance company promptly. In the case of theft or loss, you must also notify the police. If there is an investigation of your claim, you will be expected to cooperate fully. You’ll be required to prepare an inventory of the damaged items, listing the quantity, description, actual cash value and the amount of your loss. Bills, receipts, appraisal forms and any other documents that support your claim will be requested.

A signed, sworn proof of loss will need to be submitted within 60 days after the insurance company’s request. The proof of loss will state the time and cause of the loss, other insurance that may cover the loss, and the inventory of the personal property.

An insurance agent explained all of this to me in common language. He stated that it means that they have no requirement to pay you anything if you don’t provide the information, documents and other proof they ask for, and have it submitted withing the stated timeframe.

I’ve not heard of anyone yet who hasn’t received any type of settlement, but many did not receive what they needed to properly recover. In fact, most state that their settlement was between 30% and 50% of the cost to replace their belongings.

This shows why it's so important to have your personal property documented for your home and business prior to a disaster. Can you imagine trying to complete that task without a previously prepared inventory - especially when feeling overwhelmed due to the stress you'd be experiencing?

Insurance policies vary. Read yours to make sure you understand what will be expected of you when you file a claim. If you have questions, contact your insurance agent so there are no surprises.

They won't just send you a check!

Now that Christmas is over, many of your new household items are gifts. You won't have receipts, so how will you prove ownership if you have a loss from burglary, fire, or a natural disaster?


One of the most common misunderstandings about personal property (contents) insurance is about how claims are paid. People often tell me they believe that if they have a disaster, they’ll just get a check in the mail for the amount of their coverage.

This is not the case. Most insurance companies won’t just cut you a check without a list of the items you are seeking to have replaced. You’ll be asked to provide a detailed list of your loss, which needs to include each item, price and when it was purchased. Usually, you’ll also be asked to state the manufacturer, model number and serial number or other description of electronics and appliances.

It’s not unusual to also be required to prove ownership to receive full replacement. For example, a stolen 42” television brought a theft victim only $400 because he couldn’t prove it was a big screen TV. Instead of receiving the true value of the stolen television, he received the amount his insurance company pays out for a ‘standard’ model (in his case, it was a 27”).

Consider this – let’s say you have $100,000 in coverage. If your belongings are worth only $60,000, you will not receive $100,000. And, further, you won’t just receive a check for $60,000, either. You’ll be required to complete the list mentioned above before they’ll settle your claim. This proves how important it is to have an inventory of your belongings prepared before you need to file a claim. The investment in a personal property inventory is minimal compared to your potential loss.

Of course, there are always exceptions because every policy is different. Talk to your agent now so you can fully understand the details of your policy. Then, when you have to file an insurance claim, you won't be surprised when they say that they can't just send you a check.

Merry Christmas!

I posted the following earlier this month. After receiving many comments on social networking sites and via email, I decided to re-run it today for those who missed it earlier.

Drive through any neighborhood on ‘trash day’ following the holiday, and you’ll see empty boxes upon empty boxes showing what a wonderful Christmas everyone had. Even though the economy is slow this year, you’ll see that plenty of people received new desktop computers and printers, laptops, televisions, appliances, and more. A box showing a picture of a jewelry armoire will state something quite loudly: there is a lot of jewelry in this house! What a perfect opportunity for burglars to decide which house will be their next conquest.

One way to discourage theft is to conceal what items you now own. Break the boxes down and put them into trash bags (not the see-through ones). If the burglars have to guess what’s in your bags, but the neighbor has his boxes out for all to see, which house do you think they’ll choose? This won’t protect you completely, but it certainly will not invite these unwelcome intruders in, either!

You have all of these nice, new gifts; could you remember each item and prove ownership? What happens if you do have a burglary, or a fire, or a tornado? The holiday season is the perfect time to update your personal property inventory. Take photos of all the gifts before putting them away. Individual photos should be taken of high-end items. Don’t forget about clothing. A photo of a leather jacket is important if you need to file an insurance claim.

For your written report, record the manufacturer, serial number, model number and other identifying information. Also record the date and purchase price. Keep the receipts and put them with your inventory record.

While you have your camera out, take pictures of all of your holiday decorations. Think of how much money you have invested in creating this festive atmosphere. How many ornaments are on your tree? With each one costing an average of $3 to $5, it adds up quickly.

If you have high-value items, such as a Christmas Village, take pictures of the entire display. Then also record each building, including the name, model number and other pertinent information. Many collectibles have identifying marks; take a picture of those as well. Do you store your items in their original boxes? If so, and they show pricing or the manufacturer, photograph the items next to the boxes.

Since you just received new items, you might be disposing of others. Be sure to remove those items from your inventory listing. Delete the photos of these discarded items as well. This will ensure that the record of the contents of your house is completely up to date.

If you don’t have an inventory, now is the perfect time to create one. Or, if you choose not to do it yourself, contact a service provider near you. The cost of this service will quite often be less than just one gift you recently purchased or received.

We count things, including blessings

We are in the business of counting things.

We count clothes, shoes, furniture, CDs and DVDs. We count computers, monitors and printers. We count power tools, TVs and video game units. We count collectables and valuables.

We also count our blessings...customers, business associates, friends and family. All enrich our lives in their special way.Yes, we count our blessings. This holiday season, we encourage everyone to do the same.

A different Christmas Eve - a different Santa!

It was the night before Christmas and all through the house,
Santa walked gently, as quiet as a mouse.

Without a whisper he filled his bag…what? No, no, no, Santa doesn’t fill his bag; he empties it leaving presents for all the good little boys and girls. But not this Santa!

It’s Christmas Eve and the family is tucked in their beds,
With visions of presents dancing in their heads.

Little could they guess that the guy in the red velvet suit this year is a Santa burglar.

The stockings were hung on by the chimney with care,
They’ll find in the morning that nothing is there!

The flat screen TV, Wii and all the games…gone! That beautiful necklace, custom made for mom…gone! Dad’s new golf clubs…gone!

The night before Christmas is now a nightmare of sorts.
The only thing to do is call the police and fill out reports.

The police asked for serial numbers. What about pictures of anything stolen? (Camera’s gone, too!)

So the night before Christmas was different this year.
Things were missing; Mom and the kids shed some tears.

No pictures? How about receipts?

Yes, we have the receipts; they must be found!
They were in the cash box, all neatly bound.

Where’s the cash box?

The cash box is gone – the house was cleaned out!
As to what was missing, there was much doubt.

Mike & Cindy from Hartman Inventory said something like this could happen but that was just salesmanship, right? After all, things like this only happen to other people, right?

So if you don’t do it yourself, please call us; you’ll find
That the service is of value and brings peace of mind.

Edited with persmission; original written by Rowena Bergan, 1995

Home inventory - remove what has been discarded

We receive gifts this time of year, many of which replace something old or worn out. And some of us take advantage of the sales and purchase new items for ourselves. Recently I've mentioned how important it is to add these items to your inventory (assuming you've taken my suggestion and created one - or called an inventory provider to do it for you).

Well, there is something else that must be done as part of your updates. Remove the items you no longer own. By keeping your business or home inventory current, you'll make it a lot easier when it's time to file a claim.

Insurance companies suggest updating your inventories annually. So, please remember to eliminate items in your photo documentation and your written report. This step is just as important as adding the new.

Insurance fraud affects us all

There is a lot of discussion about the economy and how prices go up while the value of our money goes down. Think about your insurance premiums and why this might be happening in this industry. One reason - insurance fraud exceeds $29B - yes, that is a "B" - per year.

We’ve had many disasters in recent years, and predictions are that we’ll continue to see hurricanes and tornadoes affect our lives. Flooding is happening in areas of the country where it ‘never’ happened before. Wild fires continue to burn.

Fortunately, something is being done about the fraud. The Federal Bureau of Investigation has stated that the Hurricane Katrina Fraud Task Force has brought federal charges against 907 individuals across the country since Katrina affected so many lives in 2005. The Task Force’s responsibility is to deter, detect and prosecute those who try to take advantage of natural disasters.The Task Force processes complaints and coordinates with law enforcement agencies to initiate investigations. More than 26,000 disaster fraud complaints have been received and over 17,000 have been or are being investigated.

These are the wide-spread disasters, and this commission is addressing the fraud committed by people taking advantage of the disaster victims. But consider your individual policy. Many insurance agents have stated that fraud – whether the type investigated by the Task Force or those committed by the policy holders themselves - will encourage the insurance companies to be more stringent when reviewing insurance claims.

Why? Have you heard someone say that they stated their items were of higher value so they could – in their words – recover the deductible, too? We were told that someone claimed that all of his tools were top of the line; not one wrench or screwdriver was purchased at a discount store. Hard to believe!

When people file fraudulent claims, who do you think ends up paying for it in the long run? Everyone, through higher premiums. An insurance policy is to help you get back to where you were prior to your loss, not improve your way of life.

What can you do? Report suspected fraud. And have photographs and a list of the contents of your home or business so you can support any claim you might need to file.

Are you properly insured?

The excitement of the holidays is upon us. I don't want to take away from that feeling, but do want to point out that this is the time everyone must consider if they are properly insured. Will you be giving or receiving high-end electronics? What about a special piece of jewelry? Maybe a piece of fine art? Do you own a collection ... of anything?

Check to determine the limits that your policy stipulates. There are quite a few items that limit what the insurance company will pay out unless you purchase a rider. Some of these limits, and the common ranges are:

- Jewelry: $1000-$3000
- Guns: $1000-$3000
- Silverware: $1000-$3000
- Business Personal Property: $1000-$2500
- Sports/Stamp/Coin Collections: $1000-$2500
- Money (cash): $200-$500

The cost of additional insurance to provide adequate coverage is minimal compared to your potential loss. And if you haven’t experienced a disaster after years of paying premiums, you can be thankful for your good fortune. The value of peace of mind cannot have a dollar sign attached to it.

Enjoy the holidays, appreciate what you own, and make sure you're sufficiently covered for all the items you now have, and those that you'll soon be unwrapping.

Holidays - a time for taking pictures

The holidays are here – Christmas, Hanukkah, and New Years Eve – and with them come opportunities to ask people to say “Cheese!”. Open houses, school programs, parties, dinners and family gatherings all encourage people to capture the events on camera. While you have the cameras out, use this time to photograph all of your holiday decorations, too.

If you don’t have a personal property inventory already compiled, this is the perfect time to start one. You’ll have holiday and seasonal decorations on display that are normally boxed and in storage. Depending on the size and value, take photos of each individually, or as a group. For example, once the Christmas tree is adorned with the lights and ornaments, you can capture all by taking pictures from 2 or 3 angles. Do you have a collection of Santa Clauses or Snowmen? Take a group photo of all once they’re out of the boxes and displayed.

Many people have the popular Christmas Villages. After the village is set up, take photos of the entire village. This will capture all the accessories in one or two pictures. You’ll want to take individual photos of the more costly buildings. Some cost $100 or more, so they should have their own photo. If the building or a special accessory has an identifying mark, such as “Department 56”, take a photo of that as well. This proves the manufacturer and your claimed value can be proven.

In addition to the photographs, include a written report. You can list the general category of “Christmas Decorations” and state the total price of all decorations. You will have the photos to back up your stated dollar amount. For the higher end items, such as the Village buildings, it’s best to list each one separate, noting the year purchased, manufacturer, name of the building, and cost.

The same is true for new gift items received. Take the photos just prior to putting them away. Record the manufacturer of the tools, jewelry, electronics and appliances. Don’t forget leather or suede jackets or other clothing items that have a high value. Additionally, you’ll want to record the serial number and model number of any electronics or appliances. If you experience a theft, the first thing the police will ask is if you have serial numbers of the items that are missing.

Are you too busy, or just don’t want to bother with creating your home inventory? Call a service provider; you will find that the investment in this service is approximately the cost of one lost or stolen item.

Enjoy the holidays, and don’t forget to take photos of your family and friends, too – because they are your most valued assets!

No idea what to buy them - they have EVERYTHING!

The holidays are just a few days away, and you still are drawing a blank on what to buy them. Often, especially with parents and grandparents, you face this dilemma. Because they have everything.

Consider a gift certificate to purchase, or help purchase, a home inventory service. Since they do have everything, why not help them preserve what they've worked so hard for?

Contact your local inventory service provider and give 'peace of mind' this year.

Networking isn't limited to organized meetings

You want to meet new people, so you network. But sometimes the meetings seem to get stale, or you already know everyone in your group and you want to expand your reach. Other times you just can fit the regular meetings into your schedule.

I challenge you to rethink what networking really is. Is it going to a meeting once a week or one a month, telling people what you do, listening to what they do, and trying to find business for them while they find referrals for you? Or, is networking really the process of meeting people, building relationships and then once trust and respect is developed, you automatically want to help each other grow your businesses?

If you believe networking is the meeting scenario, I ask you to be creative for a moment. If you're more in line with the relationship-building thought process, then you’re probably already looking outside the networking box and are finding other places to promote your business.

Civic organizations such as Kiwanis, Rotary and Sertoma are formed for the purpose of serving others. Church groups, community foundations, non-profits and industry associations welcome volunteers. Though their focus is not helping you grow your business, the result is you now have a team of people who will get to know you and trust you. Fellow members will introduce you to their connections because of the relationship you’ve built over time.

An extremely casual way to network is at a party or open house. Show interest in others, ask what they do and most will also reciprocate with inquiring about your business. Creating a discussion will allow the conversation to continue, and that conversation just might lead to business. It not, they now are aware of your business, and being at the same function has created a commonality.

One of my best customers was introduced to me at a dinner party. Neither of us went with the sole purpose of finding each other, but conversation led to talking about business, and a month later he was writing us a check!

Are you bored while standing in line at the grocery store, waiting for your flight, pumping gas, or sitting at the doctor’s or dentist’s office? Take the opportunity to strike up a conversation. Some will let you know you should leave them alone, but often I find they are just as bored as I am. A business associate was at the golden arches, watching his children play. Upon asking another dad about his business, they found a great synergy and are working on projects together on a regular basis.

Look around. There are opportunities every day that present themselves to you. Talk to people. Add some variety to your networking routine. Worst case, you’ll fill some time when you’d normally have been bored. Best case, you’ll meet someone who will turn into a customer or a business associate.

No cold calling? What's the alternative?

I confessed my complete fear of making cold calls in my post yesterday. This shivering experience encouraged me to concentrate on networking instead. I find it much easier - and much more pleasant. But then the big questions are what and where?

There are a variety of groups like Rainmakers, Business Network International (BNI) and National Association of Women Business Owners (NAWBO). Their main function is to create a business networking environment based on building relationships/referrals. Sites that have a strictly business format are also on line and normally require membership fees. This is understandable, because they provide the same benefit as face-to-face networking. The purpose is a formalized business connection opportunity. Normally, just one customer per year will more than cover your fees. LinkedIn is free, but has two business-level upgrades that are fee-based. My favorite business networking site is One Degree Connected. Members have the ability to meet people in each others’ databases, with each member being just one degree away from everyone else. However, your database remains confidential until you agree to make the connection for the requester.

Another networking format is social networking. There are a plethora of online sites such as LinkedIn, Plaxo, FaceBook and Twitter that help you connect. Though called social networking, many people and companies are using these sites to meet potential business associates and develop business, as well as personal, relationships. They are doing business with connections made by becoming ‘friends’ or ‘followers’.

Other groups serve a different purpose, but very solid relationships are built through membership and participation. Some examples are civic clubs (Kiwanis, Rotary, Sertoma), chambers of commerce, church groups and industry associations. The result of building these relationships is that you now have a team of people who will refer you to their connections.

The options are endless. There is something for everyone; all it takes is a little time on your part. Visit their websites, visit their meetings. Then you can decide what works best for you.

Cold calling makes me shiver

Picture this. I’m sitting at my desk, looking at a list of people to call. After picking up the phone and putting it back down a few times, I choose to do something else. Then a few hours later I try again to make the calls – cold calls. And I can’t.

The next scenario. Now I’m in my car, driving around looking for insurance agents (my best channel market). There’s one! So I turn into the parking lot, pull up in front of the agency and grab my business cards and brochures. My hand touches the door handle and I freeze. Will they want to talk to me? What if they’re busy and get angry because of the interruption (and thus, angry at me)? What if they say …. “No!”? So I put my keys back into the ignition and drive away.

It's December, and here in Indiana, darn cold. But not even the biting cold winds make me shiver as much as cold calling! Just the thought of cold calling makes me shiver and sweat at the same time! So what did I do to promote my business? What did I discover that allows me to market and sell our service without this cold-calling torture? I network instead.

Networking gives you warm calls and most often pre-qualified opportunities. Now when I make a phone call, the person at the other end of the conversation at least knows who I am and why I’m calling. Sometimes my fellow networkers even explain our business and qualify interest before giving me the name of a potential customer! How great is that? And now instead of just walking in unannounced (if I could bring myself to do it), I have scheduled appointments.

In-person (face-to-face) networking, on-line social networking and business on-line networking provide 3 unique opportunities to be introduced to those you’d like to meet. I'll discuss some of them in my next post. They each provide an opportunity to start building a relationship. You receive warm introductions from people they know, and that relieves the cold-calling shivers.

Where do you network?

Where else besides 'home' should you have an inventory?

Yesterday's post discussed home inventory and how few people (9% of our readers) have this information documented, though most know how important it is. The main reason people give for not compiling their asset report and supporting photographs is time - or lack of it.

Surprisingly, though, they reported on our survey that a higher percentage of inventories are documented at other locations.

VACATION HOMES
71% have an inventory of their assets in their vacation homes. This might be due to the fact that they are also rental properties and the opportunity for damage or theft is higher.

STORAGE BUILDINGS
The same number – 71% - have documentation of the items placed in storage. The easiest way to record these items is when you’re loading them into the unit. If you already have belongings stored, it’s worth the effort to pull them out and record them.

BUSINESSES
Unexpectedly, only 34% of business owners responded that they have an asset inventory of their businesses personal property. Insurance adjusters state that if you have an inventory, you can anticipate you’ll file your initial claim within 48 hours. Without this information previously recorded, the initial claim normally takes at least 4 months to submit. If you don’t have the funds to replace your desks, computers, chairs, equipment, etc., will you be able to remain in business? Will your customers and/or employees wait that long for you?

Take the time to document all your personal property in your home, storage unit(s), vacation home and business. If you can’t or choose not to compile the information yourself, contact a home inventory service provider for an efficient, cost effective process that will bring you peace of mind and a maximized claim.

The term 'home inventory' can be misleading

The term “home inventory” can be misleading. It is commonly used to talk about “personal property” whether in the home or elsewhere. There are home inventory service providers who document the contents of houses. However, some of these service providers also provide inventories of the assets in businesses, storage units, trucks, trailers, RVs and garages.

The inventory documentation is important for pre-nuptial and divorce agreements, estate planning, estate settlement and financial planning. However, the most common reason to create an inventory of your personal property is to maximize an insurance claim.

Most agents stated that they encourage their customers to record their contents, but they know that very few actually complete the task. So to find out what types of inventories our readers have – if any - we conducted a survey. The results showed that only 9% have an inventory of the contents in their homes.

Surprisingly, a much larger percentage document their belongings located elsewhere. Where do you think that would be?

Uninsured loss could be a tax deduction

Tragedy strikes; flood, tornado, fire, theft, vandalism or natural disasters hit your home or business, and you find your personal property is either uninsured or underinsured. Devastating though it may be, did you know that you may be able to claim tax deductions for at least some of your loss?

Improving the ability to support the deduction usually requires a professional valuation of your property before and after the loss or damage. Having detailed records and an inventory of your property and possessions helps to strengthen your claim for a loss. You will calculate your "adjusted basis" on the property - this is your original cost and additional capital improvements for which you have paid during your ownership, less depreciation deductions and any previous casualty write-offs that you have claimed.

If you have insurance coverage, subtract anything you have received or expect to receive from your insurance company. Also subtract $100 from each theft or casualty loss, as the IRS disallows write-offs for the first $100. Lastly, subtract 10% of your AGI (adjusted gross income) for the same year as your loss to reach your final tax deduction.

The process is tricky, but it is good to know that you may not be incurring a total loss. However, many exceptions and complications may apply, and good record keeping will benefit the claimants, as the United States Tax Court emphasizes that it will "bear heavily" against taxpayers basing their loss estimates on personal recollection.

For more information on the tax deductibility of uninsured personal property, please contact me or visit www.irs.gov and download publications 527 and 2194.

This information was provided by Susie Keaton. She graduated cum laude from Ball State University with a Bachelors of Science in Accounting and is Certified as a Public Accountant in the State of Indiana. With over 16 years of experience as a CPA, Susie recently established Keaton CPA Group; her practice focuses on serving small and medium-sized business clients in the manufacturing and professional services area with their tax and accounting needs.

No one told me I needed to know how many pair of shoes I own!

Deborah Butler, a loan originator at Star Financial Bank, was kind enough to share her story so you can see how quickly your life can be turned upside down...

When I first heard about Hartman Inventory's service, I thought that it was a good idea. However, I kept delaying scheduling an appointment, making excuses like being too busy. Well, here is why I regret putting it off.

On May 30th 2008, my home was hit by a tornado. By the grace of God, no one was hurt, but in the midst of moving things out, some items were left behind. After talking with the insurance adjuster, we had to make a list of everything missing or damaged. Our minds were blank for days. My husband, son and I each had to make a list of what we lost. No one told me I needed to know how many pair of shoes I own!

There is no way anyone can say they know everything in their home! It is a hard thing to do, especially when you’re upset and living in a hotel. Now that winter is here, we are noticing many missing items. I wish I would have been a client of Hartman Inventory. They would have relieved days of working on the list. The insurance company needs that information as soon as possible to release funds so you can start replacing items.

Luckily we have up to a year to complete our claim. I strongly encourage everyone to call the Hartmans and have an inventory done on your home or business. As soon as we’re settled, we'll be calling them, because I don’t want to go through this again! You never know when a disaster will happen. If you don’t have an inventory, you are not prepared.

I am now publishing on AddsYou.com

http://www.addsyou.com
username=MjAwOC0xMi0wMSAwMDoyNTo0Ng==

Rain, not dam malfunction, caused floods in Indiana

A US Geological Survey shows that torrential rain, not a dam malfunction, caused the flooding in June that affected one of every seven structures in Columbus, Indiana.

The report summarized reasons for the event, detailed its effects and illustrated its severity with maps, charts and rainfall data. City Engineer Steve Ruble says the study eliminates the possibility of a "smoking gun'' and proves the flooding came from rainfall on June 6 and 7.

more...

Don't put your boxes by the curb

Drive through any neighborhood on ‘trash day’ following the holiday, and you’ll see empty boxes upon empty boxes showing what a wonderful Christmas everyone had. Even though the economy is slow this year, you’ll see that plenty of people received new desktop computers and printers, laptops, televisions, appliances, and more. A box showing a picture of a jewelry armoire will state something quite loudly: there is a lot of jewelry in this house! What a perfect opportunity for burglars to decide which house will be their next conquest.

One way to discourage theft is to conceal what items you now own. Break the boxes down and put them into trash bags (not the see-through ones). If the burglars have to guess what’s in your bags, but the neighbor has his boxes out for all to see, which house do you think they’ll choose? This won’t protect you completely, but it certainly will not invite these unwelcome intruders in, either!

You have all of these nice, new gifts; could you remember each item and prove ownership? What happens if you do have a burglary, or a fire, or a tornado? The holiday season is the perfect time to update your personal property inventory. Take photos of all the gifts before putting them away. Individual photos should be taken of high-end items. Don’t forget about clothing. A photo of a leather jacket is important if you need to file an insurance claim.

For your written report, record the manufacturer, serial number, model number and other identifying information. Also record the date and purchase price. Keep the receipts and put them with your inventory record.

While you have your camera out, take pictures of all of your holiday decorations. Think of how much money you have invested in creating this festive atmosphere. How many ornaments are on your tree? With each one costing an average of $3 to $5, it adds up quickly.

If you have high-value items, such as a Christmas Village, take pictures of the entire display. Then also record each building, including the name, model number and other pertinent information. Many collectibles have identifying marks; take a picture of those as well. Do you store your items in their original boxes? If so, and they show pricing or the manufacturer, photograph the items next to the boxes.

Since you just received new items, you might be disposing of others. Be sure to remove those items from your inventory listing. Delete the photos of these discarded items as well. This will ensure that the record of the contents of your house is completely up to date.

If you don’t have an inventory, now is the perfect time to create one. Or, if you choose not to do it yourself, contact a service provider near you. The cost of this service will quite often be less than just one gift you recently purchased or received.

Tis the season...to get robbed

Dean Akey is an insurance and financial specialist in Illinois, and quite an interesting person. I read his blog yesterday and found an article that I thought you'd find informative, so I'm sharing his expertise (please note he includes having an inventory!). Here's Dean...

With the economy in decline, we are seeing an increase in home burglaries. It's an unfortunate fact that burglars know how easy it is to break into most houses or apartments. That's why thieves usually spend less than two minutes trying to get a window or door open before giving up and looking for an easier target.

By taking some relatively simple and inexpensive precautions, you can make your home a difficult, and less attractive, target for thieves. Doing this will provide a more secure environment for you and your loved ones.

To help safeguard your home and make it less inviting to burglars, here are some safety tips I put together for you:
1. Invest in a home security system. An alarm system is an excellent deterrent to crime. The system should include a loud siren and motion sensors. Display security system decals on your windows and doors.
2. Lock all doors and windows when you leave home. Even if you're just running out on a short errand, make sure all doors and windows are locked. Deadbolts provide the best security.
3. Keep window coverings slightly open. Drapes and shades that are fully closed give a deserted look to your home.
4. Keep valuables out of sight. Keep valuables away from the windows so burglars can't see them from outside. Use an etching tool so valuables are easily identifiable. Prepare a household inventory of all your belongings and write down any serial numbers.
5. Don't make it easy for thieves to use your keys. Don't hide a key in the mailbox, under the doormat or above the doorway. Don't put your name and address on your key ring. When valet parking or leaving your car for service, give the attendant only your car key. If you think a former owner or tenant might still have keys to your home, change the locks.
6. Have your mail held at the post office when you leave town. Full mailboxes make it clear to burglars that no one is home. Stop newspaper delivery and ask a friend or neighbor to pick up any packages or flyers left outside.
7. Keep your garage door locked. Keeping your garage locked is as important as keeping your home locked, especially if the garage is attached. Once inside the garage, a burglar can work uninterrupted at getting into your home.
8. Don't tell strangers or casual acquaintances that you're going out of town. Although they may seem trustworthy, you'd be surprised how quickly news spreads.
9. Join a neighborhood watch program or consider starting one. These programs are designed by and for local community residents to help ensure the safety of all those living in the area. They are a great defense against crime.
10. Insure your valuables. Maybe you've purchased a valuable piece of jewelry or you have a growing collection of art. Or maybe you have a full set of quality tools around the house that you use in your business. Allstate offers Optional coverages to address these situations and others by extending your protection to reflect the value of your possessions.
11. Inventory your home. Take the time to complete an inventory record of your personal property. (An example of that inventory list is below.) In addition to completing an inventory record, take photos or videotape your items - it will make it easier to replace an item if you have a photo of it.

3 things you should expect from your insurance agent

It's wise to shop your insurance every few years. Coverages change, agents retire or move, and the rates fluctuate according to the market. So, what do you look for when considering a new agent, or deciding whether to remain with your current insurance professional?

COVERAGE REVIEW
Do you receive an annual review of your coverage? Your agent should provide this service because there are changes that might need to be addressed. Remodeling or an addition to your home will increase the value; this most likely will require an increase in coverage. Have you added siding? Is there an automatic adjustment to address the increase associated with the housing market?

PROACTIVE WITH YOUR PREMIUMS
Do you know if you’re getting the best premium rates? Shop around and get a few quotes. Let your current agent know you’re doing this. I’m amazed at how many people tell me they get a better rate when they decide to shop their policies. Don’t assume you are always getting the best premium just because your current agent was the lowest price when you switched to him years ago!

CUSTOMER SERVICE
A good agent is responsive to questions and your claims needs. Do you receive a call back promptly when you have questions? Are the questions answered in words you can understand, or in ‘insurance speak’? If your agent is great with helping you understand your policy, you can be pretty confident he will be there for you when you have to file a claim. If you like your agent but just don’t seem to be getting the service you expect, let him know you’re going to start shopping for a quote and state why. This will give him a chance to address the issues; maybe he wasn’t aware of your specific needs. Being upfront about this will give him an opportunity to review your premiums.

Is your agent the RIGHT agent? Ask questions!

We know a lot of insurance professionals, and people often ask us what makes a good agent. There is no right or wrong agent, but there is a right or wrong agent for you! You should think about what you want from your agent, determine if he or she is providing that for you, and then choose whether you remain with them or 'go shopping'.

A few questions you should consider are: Are you receiving a call at least once a year from your insurance agent to review your homeowners insurance? Does he or she review your policy annually with you? When you call with questions, are they answered promptly? Do you understand your coverage?

If you answered “no” to just one of these questions, you might want to consider finding a new agent – or have a discussion with your current one. It’s wise to periodically shop for the best price, and it’s equally wise to shop for the agent who will serve you well.

So how do you find the right insurance professional? One of the best ways is to ask friends, neighbors and family members about their agents. Find out if they are happy with them and why they remain a customer.

If you are in networking groups, civic organizations, belong to a church, etc., you probably already know some insurance agents. Talk to them; let them know you’re shopping your insurance and ask for an opportunity to meet with them. Even if you’ve know them for years, treat it like an interview. Just because you like someone doesn’t mean they’re the right fit for you.

Changing agents is a business decision, so make sure all of your questions are addressed. Get at least 3 quotes plus one from your current agent. Be sure you’re being quoted on identical coverage so you are making a true comparison. And then make your decision based on both the dollars and the agent. You might find a great agent with fantastic rates. Or you just might find you’re right where you belong. The cheapest rates aren't always the best choice. There is a lot to be said about customer service, so make sure you are receiving a fair premium and excellent customer service.

Turnkey packages should include mentoring

There are 3 key people you can’t afford not to hire when you start a business…a CPA, an attorney and a business coach. We were told this over and over when we started our business, and I totally agree with this statement.

During the start-up phase of our home inventory business, we didn’t think we could afford to hire professionals. We were so wrong! In fact, it cost us more in the long run because we had to go back and redo some of our work. The business coach, though – or lack of one – was our biggest cost factor (in the terms of lost revenue). Of course, we can’t put a dollar amount to it, but we know we would have grown faster, lost less money and received revenues sooner, if we had a business coach from the beginning.

This brings us to the topic of a turnkey package. Often people feel that it’s too expensive to purchase one, and choose to begin with just a start-up kit or entirely on their own. But when looking at the big picture, investing in a turnkey is a cost savings in the long run. It's obvious that a high quality, all-inclusive turnkey package will cost more than a start-up or minimal-value business in a box which just includes a few components. But remember that value isn’t always in the box!

A high-value turnkey package will include marketing tips and tools to help jump-start your business. Without receiving this knowledge, you’ll have to learn it all by trial and error. And during your first few years in business, you’ll have questions, need motivation, want someone to kick ideas around with. The owners of turnkey packages who offer continuing support and consultation will provide that for you. In essence, they will be your business coach.

Now let’s return to the statement about all-inclusive turnkey packages being expensive. What will a business coach cost you? Most charge between $200 and $500 per hour. Just two hours a month, and you’ll have invested between $5,000 and $12,000 your first year. And it is rare that just one year of coaching is all that is needed. Most successful business people retain a coach on a continuing basis. Why not have that cost be included in your startup funding?

The turnkey packages that include consultation or mentoring are in essence providing you with a business coach. The owner who is mentoring you will be providing specific assistance because they know the business, know the industry and have learned it the hard way – by experiencing it.

Insurance myths & realities

MYTH
I don’t need an inventory; I have insurance.

REALITY
Without a document that contains a list of your belongings, and photos to back up your written report, you will forget a large number of items. It’s hard enough just trying to remember when you’re sitting here, relaxed and comfortable. If you were under the stress of just having experience a loss, it will be impossible! Insurance companies required you to fill out a claim form; thus, if you don’t list something you won’t receive money to replace it.

MYTH
If I have a disaster, I’ll get a check for the amount of my coverage.

REALITY
They won’t just cut you a check without an itemized list, and often will require proof of ownership. For example, a stolen 42” television brought a theft victim only $400 because he couldn’t prove it was a big screen TV.

MYTH
My jewelry isn’t worth that much.

REALITY
Insurance policies have limits on items, and jewelry commonly has a limit of $2500. That limit isn’t per piece; it’s for the total of all jewelry and watches.

MYTH
We don’t have anything worth inventorying.

REALITY
Anything you own that you can’t afford to replace without financial help is worth something! What is the amount of your coverage?

MYTH
I’ll be able to remember everything.

REALITY
Try it. Close your eyes and list everything in the room. Don’t forget the items in closets and drawers.

Talk to your agent; ask these questions. If he or she is too busy, or won’t take the time to help you understand your policy, it’s time to find a new agent!

Are you properly insured?

Disasters have covered the front pages of the newspapers this year. Unfortunately, based on projections from a variety of sources, they will continue to command our attention in 2009.

Are you properly insured? Do you have the documentation that you’ll need? This story clearly explains why everyone should be prepared.

A friend called to tell me that her parents’ home was broken into. They had helped her move, and when they returned home, found that their back garage door had been kicked in, in broad daylight and in a condominium community. Upon discovering this, her mother’s first thought was “this is going to be a real big hassle trying to discover what has been taken.”

Since they had been burglarized before, they were aware of the difficulty remembering and proving everything they own(ed). At that time, they spent hours on end trying to figure out what was missing. Unfortunately, they never did replace everything that was stolen. This was because they forgot about items rarely used, and didn’t discover the loss until after the settlement when they went looking for something and couldn’t find it.

After the initial shock of this incident, though, her mother remembered that they had just a few months earlier hired us to document a personal property inventory. Fortunately, nothing was missing because their dog scared off the intruders before they got into the house. But, with only 5 days until Christmas, the story could have been much different.

Contents insurance - know your policy's limits

Personal property is described as the contents in a home or business. The easiest way to visualize it is to think of taking the roof off and turning the building upside down. Everything that falls out is personal property. Therefore, built-in cabinets, appliances, desks and bookshelves are not personal property. Carpet, wood and tile flooring, window treatments and light fixtures are not personal property. These are items that are considered part of the structure and are not considered when determining the dollar amount you need to insure your personal property.

Another way to describe personal property is what you’d take with you if you move. Whether you are a renter, homeowner or business owner, it is very important to be aware of the limits of your personal property insurance coverage.

There are specific limits to your insurance policy regarding assets in your home or business. You should be aware of these limits and discuss your specific needs with a qualified insurance agent. Every insurance company designates their limits for specific items. Here are a few items, with common limit amounts:

- Jewelry: $1000-$3000
- Guns: $1000-$3000
- Silverware: $1000-$3000
- Sports/Stamp Collections: $1000-$2500
- Money: $200-$500

These numbers are not per piece, but the full amount allowed. So, if you have a diamond engagement ring that is valued at $3000, and that’s the jewelry limit on your policy, you will have maxed out your entire coverage for all jewelry with just that one ring. If your policy has a $1000 limit, based on the example of a $3000 ring, you’ll only receive $1000 toward a replacement. Take a look at your jewelry armoire or jewelry box. How many pair of earrings do you have that are considered costume jewelry? You can easily exceed $1000 with 5 pieces of jewelry from Sears!

Original, irreplaceable fine art and collectables are items that could easily exceed their limit. To be sure you’ll receive full settlement, have them appraised and listed on your policy to ensure you’ll receive full replacement value at the time of the loss.

Have you inherited your grandmother’s fine silver? Do you know the value? How about guns? Just one rifle could exceed your policy limit!

If you have assets that exceed the specific limit in your standard homeowner’s policy, you will need to purchase additional coverage. The cost is minimal when you consider how much you stand to lose.

Disaster preparedness - 10 tips for homeowners and renters

We all are aware of disasters (fires, burglaries or natural disasters) and how they negatively impact ones life. So what can you do? The National Association of Insurance Commissioners (NAIC) offers 10 tips to help you. By addressing these items, you’ll know that you’re prepared for a disaster, and just as important, be able to properly recover.

• Take an inventory of your valuables and belongings. This should include taking photographs or a video of each room. This documentation will provide your insurance company with proof of your belongings and help to process claims more quickly in the event of disaster.
• To enable filing claims more quickly, keep sales receipts and/or canceled checks. Also note the model and serial numbers of the items in your home inventory.
• As you acquire more valuables — jewelry, family heirlooms, antiques, art —consider purchasing an additional “floater” or “rider” to your policy to cover these special items. These types of items typically are not covered by a basic homeowners or renter’s insurance policy.
• Remember to include in your home inventory those items you rarely use (e.g., holiday decorations, sports equipment, tools, etc.).
• Store copies of all your insurance policies in a safe location away from your home that is easily accessible in case of disaster. You may want to store your policies and inventory in a waterproof, fireproof box or in a safe, remote location such as a bank safe deposit box. Consider leaving a copy of your inventory with relatives, friends or your insurance provider and store digital pictures in your e-mail or on a Web site for easy retrieval.
• Know what is and is not covered by your insurance policy. You might need additional protection depending on where you live. Make sure your policies are up to date. Contact your insurance provider annually to review and update your insurance policy.
• Keep a readily available list of 24-hour contact information for each of your insurance providers.
• Find out if your possessions are insured for the actual cash value or the replacement cost. Actual cash value is the amount it would take to repair or replace damage to your home or possessions after depreciation while replacement cost is the amount it would take to repair or replace your home or possessions without deducting for depreciation. Speak with your insurance provider to determine whether purchasing replacement coverage is worth the cost.
• Speak with your insurance provider to find out if your policy covers additional living expenses for a temporary residence if you are unable to live in your home due to damage from a disaster.
• Appraise your home periodically to make sure your insurance policy reflects home improvements or renovations. Contact your insurance provider to update your policy accordingly.