I love receiving hand-written notes

There is something about a hand-written note that means so much. Maybe it's because you know the person took some extra time to create it, put it in an envelope, seal the envelope, address the envelope, affix a stamp and then find a mailbox to send it from.

Besides all that, this recent note we received had a great message that confirmed exactly what we believe. It was from someone who took the Hartman Inventory Systems Turnkey Business Package information to an SBA advisor for review. She wrote that the SBA advisor was "very impressed with the turnkey package and thought the price was a bargain for what you are providing."

It's always great to receive this type of feedback from someone who is "in the business of business," so to speak. A hand-written note with kudos for the product we created! Nice!

For those of you who like statistics

We relay many stories in this blog about people who understand (or recently learned) the need for an inventory of their belongings. They have seen a neighbor, friend or relative experience the loss from a fire, theft or natural disaster. Or they witnessed someone who was the executor of their parent's estate and struggled through the emotional stress of recording all the items their parent owned becaue they needed to provide an inventory to settle the estate.

However, we also know that many people like to see statistics and numbers, instead or in addition to, the stories that support the need for this documentation, so here you go...

• The average disaster victim (business owners, homeowners, renters, churches) recovers 30%-50% of what they need to recover. (source: local insurance adjuster)
• One burglary victim could not prove that the television stolen was a 46 inch plasma set. Therefore, he received the insurance company’s “standard” value of $400 for the television. Reasonable replacement costs by Google.com search would be between $900 and $2000, depending on type (i.e., LCD, plasma, etc.). An inventory would have proven the size and type of the television, resulting in full replacement value.
• Insurance agents state that the average amount of time it takes to file an insurance claim without a detailed inventory is four (4) to twelve (12) months.
• These same agents state that when the policyholder has an inventory of their belongings, the initial claim is typically filed within twenty-four (24) to thirty-six (36) hours.

Rain, rain, go away ...

... come again another day. This was heard around our neighborhood when I was growing up. Every time it rained, we wanted to be outside and hoped for the rain to go away. No doubt many people have been saying this throughout the Midwest. Our town of Avon had over 4-1/2 inches of rain in less than one day last week! Flooding was happening in places we haven't seen even a puddle in years. Tennessee certainly had enough, evidenced by the flooding they experienced recently. Storms came through our area again last night; lightning struck houses in Fishers and Greenwood, and I'm sure other places as well. It's been quite a wet spring and early summer!

The flooding and dampness from all this moisture can cause a lot of mold, and we all hear quite a bit about mold on walls, floors and ceilings as a result. But, since we focus on the contents of homes and businesses, we wanted to remind everyone to watch for mold developing on your furniture. Whether it's wood or upholstery, mold can grow and cause health issues.

If you see or suspect mold in your hosue, check with a certified mold remediation expert regarding how to best remove the mold from your furniture and other contents on your house or business. You might also want to check with your insurance agent to see if you are covered for this damage and the resulting restoration.

Makes sense to listen to the police

The Las Cruces Sun-News reported on Wednesday that the Las Cruces Police Department (New Mexico) "is encouraging residents to properly document their personal property - especially items of value such as jewelry, firearms, tools and electronics - in case they are stolen."

It seems that thefts are gaining headlines everwhere. Unfortunately, even though police detectives, firemen and insurance agents all suggest people create an inventory of their belongings, we hear every day about people who just suffered a total loss and did not have a record of what they owned. This make it very difficulty - if not impossible - to remember and prove ownership. Thus, a less-than-sufficient insurance settlement.

The newspaper article continues, "Detectives investigating home and auto burglaries who often recover property believed to have been stolen frequently have difficulty matching property to a specific case."
Without a written record of manufacturers' serial numbers, it is usually impossible for investigators to return recovered property to its owner.

The Las Cruces police also recommend that you keep a complete record of your valuables in more than one location in the event of a fire or other disaster.

One in a million probability ... maybe

The most recent International Risk Management Institute (IRMI) newsletter reported readers' views on rare but catastrophic disasters, such as the BP oil spill. The thought process is very much in line with a personal property inventory. Granted, a tornado, flood, hurricane, theft, fire or other disasters are not as all-encompassing as the explosion and resulting oil spill. However, on a personal level, for an individual or small/medium business, it is just as financially harmful to the point of possibly never being able to recover and rebuild after a major loss. 


A comment in the newsletter, made by Craig Stanovich, Principal Consultant with Austin & Stanovich Risk Managers of Holden, MA really caught my eye. He said, in part, "... if the event is viewed as a "one in a million" event, conventional wisdom appears to be to simply discount or ignore the event and its results. This is just another way of rationalizing the "It wouldn't happen to me!" syndrome." He continues, "It seems to me that the first order of business is to identify those events, however remote, that have the potential to be disastrous, and set about managing those risks. That the odds appear to be heavily in your favor is of little consolation if the event happens." (Italics mine)


The need for risk management is at every level and the size or scale of a disaster doesn't make it any less or more important. It relates, on an individual basis, to a residential or business personal property inventory. Those who do not have the documentation to help them recover from a disaster are living with the "It wouldn't happen to me" attitude.


Will you experience a disaster? No one knows. Will you be prepared to fully recover? Only you can answer that question.

What would you grab?

There was an AP news feed yesterday that stated a second wildfire in just two days forced residents of Flagstaff, Arizona, from over 1000 homes on Sunday.


What would you do if you were forced to evacuate your home due to a disaster? Do you have an inventory of your belongings so that you could file a claim quickly and recover sufficiently? If you have an inventory, do you have it in a safe place? You won't want to have to hunt for your documents if you're being evacuated. Having it stored safely will ensure you'll be able to access it later.

The are tornados and severe storms in the mid-west, fires in Arizona, this hurricane season is expected to be more severe and thefts are still happening at an alarming rate. Disasters do happen every day. They don't always happen to others. Protect your financial future. If you don't have the time or desire to create your inventory, contact a service provider. The cost will be more than recovered if you need the information. If not, you'll have received a great ROI for your peace of mind.

When thunder roars, go indoors

That's the slogan for this year's Lightning Awareness Week. Unfortunately, those in the midwest are getting days and days of severe lightning. A retail center in Carmel, Indiana is reported to be a total loss due to a fire caused by lightning strikes. Additionally, houses throughout central Indiana are reported to having been struck by lightning.

These are constant and current reminders of how quickly you can lose everything you own. Homeowners, renters and business owners alike benefit from having a thorough record of all belongings. While you're stuck inside waiting for the storms to subside, use that time to compile your inventory. If you don't want to do it yourself, these last few days has displayed enough loss to many people to prove the need for this documentation. Contact a local inventory service provider so you know you'll be able to recover quickly and maximize your insurance claim.

What's worth less than $1000?

Most business owners and CPAs are now using $1000 as a rule of thumb as the value for items to be placed on a depreciation schedule (it used to be $500). This depreciation schedule is very helpful when you have a fire, theft or natural disaster. Or any other time you need to know the value of your assets, for that matter (applying for a loan, for instance).

So, this brings up the question ... What about all the items that cost less than $1000? How many tables, chairs, desks, file cabinets, breakroom appliances, decorative items, etc., do you own that cost less than $1000 (or $500 if you still use that figure)? I can answer that for you ... A LOT! And my next question is ... Where is that list?

After providing inventory services for many business owners, I know the answer to that. There rarely is one. How would you remember and prove what you owned? How would you compile your list while being overwhelmed with the task of getting your business back up and running again? Wouldn't it be great to have a thorough inventory of all of your asssets?

Business owners need to know the total value of contents

When buying insurance, business owners obtain a policy based on the space he or she is using with variations based on whether the business owns or is purchasing the building or leasing space and there may be some additional calculations based on the type of and numbers of years in the business. This tells them how much they need for coverage.

But, the insurance agent may never see the business office, warehouse, lab or storage areas and its contents before drafting the appropriate policies. A business likely will have additional policies or riders based on “invited guest” laws, professional liability or errors and omissions related to the business, and as such may spend more time discussing these matters with the insurance agent than discussing the value of the technology equipment, software, furniture or supplies required for the business to function.

This is where the importance of an inventory comes in. Without knowing the value of all the contents, how do you know what the total coverage should be for this section of your insurance policy? When using percentage calculations based on the value of the building, you could be way over or under insured. Once you know you're covered properly, this inventory document will also be of great value if you need to file a claim because you'll have the details the insurance company will require you to submit before settling.

Rose Bowl rings returned in a plastic bag

Yesterday we posted an AP article about a burglary victim who was required to help carry the TV down the stairs. Also mentioned was that there are a lot of burglaries and the importance of having a list of your belongings. Another AP story dittos my remark about needing to know what you own ...

"MADISON, Wis. -- Police say six rings reported stolen from former University of Wisconsin and NFL running back Ron Dayne have been returned to him in a plastic bag.
Madison Police Lt. Jennifer Krueger Favour said Dayne had reported the rings stolen from home in Waunakee, Wis. She said they were returned anonymously in a plastic bag Tuesday to Dayne's apartment in nearby Madison.

Krueger Favour did not describe what the rings were and Dayne did not return a message.
Dayne reported in April that his two Rose Bowl rings and about $100,000 worth of jewelry and other items were stolen from his Waunakee home.

Last month, he reported a burglary of about $50,000 in jewelry and other items from the Madison apartment, including a diamond bracelet commemorating his 1999 Heisman Trophy win."

He got the rings back, but what about everything else? I'm confident to state that Dayne could not list (or remember) each of the more than $150,000 worth of items stolen and know the price and when each was purchased. An inventory would have made his claim much smoother and faster.

Whew! This has been crazy weather

It's raining. Then the sun comes out. Then it gets dark and we hear tornado sirens. Then the sun comes out again. The midwest has been slammed recently with strong storms. You're seeing a lot of pictures of the devistation these storms leave behind. Houses and businesses having been blown away.

Few people can state they do not know anyone who has experienced a loss due to fire, theft or natural disaster - most recently, these storms. You know the stories of the months and months of doing their best to remember what they owned. If/when this happens to you, will you recover properly? Can you remember everything? It sounds easy, but it isn't - especially when under the stress and emotional turmoil of destruction.

For those of you who like statistics:

• A residential fire occurs every 76 seconds
• 79% of all structure fires occurred in residential properties
• A burglary occurs every 15 seconds
• A robbery happens every 1.2 minutes
• Larceny or theft occurs every 5 seconds
• In 2007, there were over 6.6 million larceny or theft cases, 84% of which were personal property

Each year, disasters such as floods, tornadoes and wildfires force thousands of businesses to close and many homeowners to experience major financial setbacks. But even more common events, such as building fires, cause the same result. The key is being prepared.

 
One major piece of being prepared is an inventory. Have you created yours?

Needed: One inventory AND a hand-cart

We always stress the importance of having an inventory to prove ownership. Serial numbers on your itemized list will certainly do that, which will help you get your stolen property back. And burglaries are happening often.

Indianapolis residents found out how important it is to know what you own. They also learned that you might need a hand cart when being burglarized. The reason you need a hand cart when YOU are the victim of a theft? According to the Associated Press:

"... police say three armed men who broke into a man's apartment not only stole his flat-screen television, they forced him to help them move it down a flight of stairs.



A police report said 30-year-old Jason Geminden and his girlfriend were asleep when three masked men armed with handguns woke them about 1:30 a.m. Wednesday. The pair were forced to stay on the bed while the men ransacked the apartment, taking jewelry, electronics and car keys.

At one point one of the men ordered Geminden to get up and help carry his 32-inch TV downstairs. One of the suspects then told the pair they were so helpful they wouldn't be tied up.


Police believe the men entered the apartment through a patio door."

Oh ... the hand cart should also be listed on your inventory.

Conversation with a customer

I recently wrote a blog post about the need to document your belongings when entering into a 2nd marriage, especially when you have adult children. If both people enter into this joining of assets with an inventory in hand, it doesn't mean you don't trust your soon-to-be spouse. Nor does it mean you won't share your belongings with them.

What it does mean is that you want to be honest and fair to your children. A thorough listing of the contents of your home can solve a lot of issues. You don't know which of you will die first, so being prepared for this to happen is out of respect for your children. Proving what you brought into the marriage can help settle arguements. You can also list what items you want to bequeath to each member of your family. The inventory list can be considered a letter of instruction in Indiana, and can also be noted in your will.

Then, if you are not the surviving spouse, you'll know the family heirlooms - china, furniture, stemware, silver pieces, etc., will remain with your family. Our customer stated there are still issues years after the death of her parent. She told me that it's not so much the money, but the sentimental value some of these items represent. If only they had created an inventory when they got married ...

Creating an inventory prior to your marriage or even now doesn't mean you don't love your new spouse. It does show how much you love your children and that you want them to be able to keep these special items in the family - their families. If not for yourself, create this document for the sake of your children.

There are SO many other reasons

Most people think of disaster preparedness and recovery when discussing the need for a personal property inventory. This is because an inventory helps you know if you have enough coverage, and also will help you remember and prove ownership if you have a claim, which will maximize the settlement.

However, there are many other reasons to have a thorough list of your belongings. This is true for homeowners, renters and business owners alike. For example:

• Estate settlement
• Estate and financial planning
• Divorce and prenuptial agreements
• Loss or damage in moving or storage
• Backup documentation for claims of uninsured losses on a tax return

Business owners must protect what they work so hard to create. Though disaster preparedness and recovery is one way an inventory will help you do that, there are other times that a record of all of your assets will be helpful, if not necessary. In addition to the items listed above, an inventory also provides assistance when:

• Applying for a business loan or line of credit
• Ensuring your personal property taxes returns are correct
• Sale or dissolution of a business
• Purchase of a business

So many reasons, so many opportunities, to utilize this one document!

Why renters need insurance, too

Jim Metzler is owner of Metzler State Farm Agency. Well-known throughout the Indianapolis metro area due to his many years of excellent service, he can be reached at (317) 844-4402 or visit his website at www.InsuranceInIndy.com.

Email Jim . 844-4402

There are two big myths about renters insurance. One is that it’s too expensive and the other is that it’s not needed.

Not having renters insurance is a pretty big gamble, considering that without it you face the cost of replacing your personal belongings after an event such as fire or theft. What’s more, you could face the prospect of defending yourself in a lawsuit because of some accident for which you might be held legally responsible, whether it happened where you live or elsewhere.

In many cases, for less than a couple hundred dollars a year, you can protect your valuables, like your furniture and clothes, from loss by fire, theft, wind and water damage or other covered hazards.

But many renters still don’t believe they need such insurance. A survey conducted by Cambridge Reports, Inc. for the Insurace Information Institute found that fewer than three out of every 10 renters purchase renters insurance.

Many renters mistakenly believe their landlord’s insurance will cover their own belongings. In fact, it would be extremely rare for a landlord’s policy to extend to tenants’ property.

To determine how much insurance coverage you’ll need, take a complete inventory of your personal items. An insurance agent can help with this by estimating the total value of your property.

You’ll also need to decide whether to opt for depreciated or limited replacement cost coverage. Depreciated coverage is the cost to repair or replace your belongings minus depreciation. Let’s say you bought a quality sofa with an expected useful life of 10 years. If it’s now five years old and would cost about $1000 to replace, you could expect to receive about $500 (less deductible) if your sofa was destroyed by fire. You would pay slightly more for limited replacement cost coverage, but you could expect to receive $1000 for your sofa minus your deductible.

You should also keep in mind that insurance coverage for some types of personal property is limited in terms of dollars. Renters insurance also gives you personal legal liability coverage and medical payment to others who are accidentally injured while in your home, apartment or elsewhere if the injuries are caused by your actions. And, if you are forced to live elsewhere because of damage to your residence due to a covered loss, renters insurance covers additional living expenses.

Remember, you may not own the building in which you live, but you still need to have insurance to protect your property in the case of fire, theft or other hazards. Talk with your insurance agent for more information.

Divorce = a need for an inventory

Prenuptial agreements are a time, in addition to disaster preparedness, when one should have a personal property inventory. This was discussed in our blog post on Thursday.

Another time a 3rd-party inventory can be extremely helpful is when going through a divorce. One of our customers suspected that the spouse would not declare the full amount of business assets, and requested a court-ordered inventory of the business. Another customers, after divorce papers were served, called us into the home "as quickly as you can get here" because the spouse was selling and removing items from the home - items they both owned. The client wanted proof of everything they jointly owned before more items came up "missing."


Though this is not our favorite type of inventory, we see the need and are pleased that we are able to provide a service that helps people come to an equitable agreement.

Unfinished business and Congress went home

Did you notice there are no hours posted on this sign? Unfortunately, that could easily be hanging on the doors in Washington, DC. This is not good news for those who are in need of flood insurance, because they can't get any!

We've been keeping you posted on the flood insurance issue, because as personal property inventory service providers, we understand how important it is to have coverage and also an inventory to receive a maximized claim. With Congress' decision to take a break without taking action on flood insurance, as of June 1st no new policies can be written. Luckily, those with a current policy are not affected. I thank my good friend and Sentry Insurance agent, Barb Hook, for the following information:

Effective June 1st, insurance agents are prohibited from issuing:

• new flood policies for applications and premium payments with a date of June 1, 2010 or after
• increased coverage on existing flood policies for which endorsement and premium payment dates are on or after June 1, 2010
• renewal flood policies for which the renewal premium is received by the company on or after June 1, 2010, and after the end of the 30-day renewal grace period

 until Congress reauthorizes the Program. This is a result of Congress failing to extend funding for the National Flood Insurance Program (NFIP). Congress will reconvene to address this issue on Monday, June 7th.

Prenuptial = a need for an inventory

During the blissful months leading up to a wedding, the last thing anyone wants to think about is divorce. However, it's best to take steps now to protect your assets in case your anticipated blissful future ends up not quite as expected.

Though it could be a touchy subject, a prenuptial agreement can help alleviate problems down the road. Consider how much easier it would be to prove prior ownership if you each have an inventory before exchanging your vows. And if this not your first marriage, and you have adult children, you can be sure they have concerns about the family's assets.

So, what happens if a beautiful wedding day leads to an unhappy marriage? A 3rd party professional inventory is the answer.

How they decide the amount of your contents insurance

This information fits quite well with the recent posts about moving. The mortgage company has a role in homeowners and business insurance - they want to protect their asset. This is why all homeowners and business owners with a mortgage are required to have insurance.

This process covers the banks and mortgage companies, the land and the physical structures well, but can leave the property owner (you) underinsured for all of the personal property, or contents, in your house and/or business.

Most insurance covers personal property based on a percentage of the value of the structure. This percentage can range from 45% - 85%, depending on the insurance company and the type of policy purchased. Therefore, the personal property in a $200,000 house would, in general, be covered for an amount anywhere from $90,000 to $170,000, which may or may not cover your needs, if your assets are well documented.

Do you have enough coverage to replace everything you own? Just guessing isn't good enough, as many who have experienced a disaster found out the hard way. Your insurance agent will be the first to tell you that the easiest and best way to know is to have a thorough inventory of all of your belongings.

There is no better time than now!

Flood insurance rates cut!

Thursday's blog post informed you of the lawsuits in Tennessee filed as a result of the extreme flooding they experienced this spring. According to Insurance Headlines last week, the fear of expensive flood insurance has been removed - at least for two years. Residents across the US were concerned that flood insurance premiums would go up due to the push to draw up new floodplain maps.

Instead, the Federal Emergency Management Agency's (FEMA) decided to offer up to two years' eligibility for the National Flood Insurance Program's Preferred Risk Policy — the program's lowest-cost option — to small businesses and homeowners on any land the new maps show are in newly designated special flood hazard areas. The new rates are available after the redrawn maps take effect, in many cases this fall or early next year. The savings can be huge - up to 4 or 5 times less than what it might otherwise cost them!