What is YOUR why?

Yesterday we talked about all the reasons people need a personal property inventory of the contents of their home. As a recap, the top three that were of the greatest awareness level were disaster preparedness (95%), knowing you're properly insured (75%) and estate settlement (55%). These were based on the recent survey many of you were kind enough to complete for us.

Another survey topic was "I have an inventory of the contents of my home because ..." and the why for the most people (35%) was because they believe in being proactive/being prepared. This is great to hear (though I wish the number was higher).

The other whys are:

• I knew I would forget a lot if I had to create the list (25%)
• My insurance agents suggested I have an inventory (10%)
• I had to file a claim and learned the hard way that I needed one (5%)
• Don't want my children to have to do it when settling my estate (5%)

The final option was "I do not have an inventory." Unfortunately, 65% of respondents were in this category. Tomorrow begins Preparedness Month. You'll be hearing and reading a lot about this topic, from the President of the United States on down to local disaster preparedness and inventory companies like us. Please take this seriously and consider how much you have to lose - in time and in money.

An inventory plays a major role in the ability to recover financially from a disaster. One why we all would hate to hear is, when a disaster strikes, you wonder why you didn't bother!

Of all the reasons for an inventory, how many did you know?

Our recent survey shows that 95% of the responders knew that an inventory will help if you have a need to file an insurance claim. We were pleased to see this increase in knowedge, as well as with other instances, has increased from our survey from a few years ago. We trust that our newsletters, website, blogs and speaking opportunities have contributed to this increase in awareness! The statement in the survey was, "I am aware that I need/want a thorough personal property inventory of the contents of my home for the following reasons."  Following are the results:

95% - After fire, theft or natural disaster to be able to file a thorough insurance claim.
75% - Knowing I'm properly insured.
55% - Estate settlement so my children/executor won't have to create the inventory of my belongings.
45% - Proof of a claim for uninsured losses on my income tax return.
40% - Moving or placing items in storage.
35% - Funeral or estate planning.
35% - Financial planning.
30% - Divorce.
30% - Prenuptial agreements.

And one person wrote in, "So I won't duplicate purchases!" Of course, an inventory does help with that. Especially when you have items in a storage facility. You can check your inventory list before making the purchase. This will, indeed, prevent you from purchasing something you forgot you own.

Were you aware of all of these reasons to have an inventory of your belongings? So many times it's just the disaster preparedness/recovery reason (95%) that is known, but this information is so helpful, if not necessary, so many other times.

No matter if you have a large mansion or a small studio apartment, it's a document all should have. Do you have yours?

Are young or old; men or women, more apt to answer a survey?

Our survey results have been tabulated, and we thank everyone who took the time to complete either the personal or business questions. Before we disect the issues regarding personal property inventories, we wondered: just what does the "normal" survey responder look like? Man or woman? Young or old?

According to our surveys, when it's business-related, the most apt to respond would be a man over 50 years old. But when it's a questionnaire related to the home, by far it's a women over 50 years old. So, what does that tell us? That people over 50 like to share their opinion more than others? That they see the value in helping others? Or just that they have more time on their hands? Maybe this is a good question for our next survey!

Here's the breakdown of "who" answers surveys about personal property inventories:

BUSINESS SURVEY
Gender: Men = 53%; Women = 47%
Age: Under 30 = 7%; 30-39 = 14%; 40-49 = 31%; 50+ = 48%

RESIDENTIAL SURVEY
Gender: Men = 30%; Women = 70%
Age: Under 30 = 5%; 30-39 = 25%; 40-49 = 0%; 50+ = 70%

It was no surprise that the Under 30 category was not represented well. Most young people feel that "it" won't happen to them, so often don't prepare. According to a friend who is an insurance agent, this is the lowest age category of people who own a life insurance policy. Same type of thinking.

It was a surprise, however, to see that no one in the 40-49 age group answered the residential survey, then a huge jump once people reached 50. Hmmm.

Be up to date - ask these 3 questions

According to International Risk Management Institute, Inc. (IRMI), an insurance survey suggests that over 30 million U.S. households own insurance policies that are seriously out-of-date. Here are some questions regarding your homeowners insurance that you should consider.  

• Has your house undergone major renovations or improvements? If so, your home may be underinsured.
• Have you purchased new valuables or collectibles? If so, you may be seriously underinsured for these items. Specialty policies or endorsements can properly cover them.
• Have you added a burglar alarm with central station reporting for your home? If so, you could qualify for a homeowners premium discount.

If you answered "yes" to any of these questions, contact your insurance agent so he or she can update your policy.

All businesses need insurance

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.


The dream of owning a business becomes a reality for thousands of people each year. For many of these would-be captains of industry, that means starting the operation on a small scale. However, your enterprise might be in jeopardy if you don't have business insurance.

You need business insurance because most beginning entrepreneurs don't have the resources to handle adversity if it should come. Adversity can happen in many ways: fire can destroy your inventory, a power outage could cause your goods to spoil or a customer could be injured accidentally while visiting your location.

Business insurance can protect you from these hazards and others by providing many or all of the coverages listed below:

• Accidental direct physical loss coverage for business personal property.
• Broader off-premises property coverage.
• Loss of income coverage.
• Extra expense coverage.

This list is just a sample of what's available. Contact your agent to see what coverages are right for your business.

Many entrepreneurs start their business on shoestring budgets and try to cut corners by keeping expenses at a minimum.  But when you consider what you get, business insurance is a tool you can't afford to work without.

Acting like the BIG GUYS

Large corporations understand the importance of having an accurate inventory which documents the value of the personal property, or assets, that the company owns. It is just as important for small and mid-sized businesses to follow similar formalities. A few key reasons are:

• Buy-sell agreements should always include a valuation of the business, and a current inventory is an essential part of that valuation.
• Additional key info even if you're using a business valuation company - most do not get deep into details because the deeper they delve, the more time and cost involved. Sometimes these "details" (or personal property) can add up to a large sum of money.
• When they do add up to a high value, it can make a difference when seeking funding.
• If you don't know the true value of your assets, there is high probability of not having a sufficient amount of insurance to properly recover from a fire, theft or natural disaster. 
• A list of all assets can provide information for tax purposes for depreciation and losses or other accounting or auditing purposes.
• Cost savings. Often the CFO or Department Managers don't know what the company owns or where items are stored. This frequently causes more items to be purchased since they are unaware the company already owns them.
• Time savings. Rather than spend hours hunting (then possibly purchasing) for specific items that would be in storage, the inventory list will tell you exactly where they are located.

Obviously, there are number of reasons to have an inventory of your company's assets. It can be a time-consuming process, but well worth the effort.

Oh, by the way ... if you don't want to take the time - or your employees' time - there are personal property inventory service companies that will do it for you.

Benefits of using an inventory service provider

Our last few posts have discussed reasons why people choose to hire a professional inventory provider and how to choose the right one for you.

In addition to the obvious and those already discussed, there are a few other benefits of hiring an inventory service provider. Having a professional 3rd party create the documentation will give more credence to the finished product, especially when dealing with insurance and a loss claim.

A service provider will most likely provide update services that will keep the information current (if people choose not to create the initial inventory, they will most likely not update it either).

Check with your accountant. Most businesses can deduct the cost of an inventory as an “office expense”; where to include this deduction depends on the structure of the business and its associated necessary tax forms. Estates can deduct the inventory costs from income and assets in determining any estate or other inheritance taxes due.

And, of course, peace of mind.

How to choose an inventory service provider

Consumers and business owners are seeing the need and importance to have an asset inventory, but many people just don't want to do it themselves. There are many reasons; the most common are 1) they don't have the time, 2) they don't know how and 3) they just don't want to/prefer to hire someone to do it for them.

New technology has not really advanced the inventory process. Surfing the internet yields a plethora of inventory devices such as software, forms or online repositories for the individual to complete. These companies make it sound easy to grab your camera, pad of paper and pen and walk room by room around your house or business, making notes and taking photographs.

Unfortunately, the task for many individuals is daunting, even if they have purchased the software or form, to sit down in a room and look around at all their “stuff”. They become bombarded with conflicting thoughts of – I do not need to include that, or do I? What would happen if I lost that? Soon scrutinizing every chair, box or bauble becomes overwhelming. This is where the vast majority of consumers are. Therefore, the best bet for the motivated majority is an inventory company who will:

• inventory a facility through photographic and written documentation
• allow for inclusion of receipts and appraisals
• provide an electronic copy
• provide optional valuation for the inventoried items
• provide online storage for 24 hour-a-day, 7 days a week
• offer annual or periodic updates for current customers

 As with any personal service, a recommendation is the best and safest way to choose. Ask if they are bonded and insured. Visit the company’s website, which is most often a reflection of the company and the owners. Is the website professional in appearance? Does it provide quality and thorough information? Is there enough information about the owner(s) to give you confidence in their product? Also feel free to call and ask a few questions, and/or request a time to meet a representative or get an estimate.

When do you need an inventory service provider?

Are you under stress? Do you have a deadline, either set by the courts, your attorney or even self-imposed? Do you have the funds? These three issues - time, stress and money are the three things to consider when you're deciding whether to create your own inventory or to hire an inventory professional service provider to do it for you.

Things to consider are what your time is worth, if your time can be better spent doing something else - and in the case when serving as an executor - if you would be less stressed and able to ease your emotional turmoil by having an 3rd party provide the service for you.

TIME
When there is a deadline and you doubt you'll be able to meet it, hiring a professional will allow you to tend to the other areas of your life while the service provider takes care of the inventory. If an inventory has been on your to-do list for along time and you just never seem to get it done, possibly a service provider is the answer. If you're a business owner, where is our time more valuable?

STRESS
Just facing a deadline can create stress, especially when you're busy tending to other issues. When you're serving as an executor, you're also dealing with the death of a loved one and the emotion can be heightened when you're creating this list of belongings.

MONEY
Do you have the funds to purchase the service? Consider the return on the investment. This documentation will help maximize your insurance claim. You can also increase your deductible because you know you'll recover better with the inventory and more than make up for the difference between the deductible you now have and the amount you've increased it to. If you're a business owner, consider what your time is worth, and if you could make more money tending to your business while you hire an inventory service.



These are the three major areas to consider when deciding whether to complete your own inventory or to seek out a professional. As with any specialized service provider, an inventory company should be able to exhibit their expertise and respond to your initial questions.

What questions do you have?

What's better - pay someone to do it or do it yourself?

Why offer an inventory service when people can do it themselves?

Let's look at that question a different way: Why is there ANY service offered when people can do it themselves?

A short list would be:

• cut your hair
• color your hair
• mow the lawn
• clean the house
• change the oil in your car
• run errands
• build a deck
• fix a leaking faucet
• get organized
• manicure your nails

The answer is the same if you replace "inventory" with any of these other services. The answer is, "because there are other things you'd rather do, others can do a better job, you are too busy, etc."

Here is a prime example I found on eBay: "Household & Personal Property Inventory Book - new." The description states, "This Inventory book is in new condition. There is no date. It is ready to be filled out. There is no writing anywhere. The soft cover and all pages are tight and intact. Now (sic) torn or missing pages. 32 pages."

How many people have bid on it? None. Why? For the same reason people don't do other things themselves. (If you are a do-it-yourselfer, the link for this Inventory Book might help you. I've not seen it, so I don't know any more than what is posted on eBay.)


However, if you don't want to do yours, but realize the value of knowing what you own, then that's why we're here. That why there are companies who do provide an inventory service - for those who choose to have someone else do it. Usually faster, more professionally, with better results (just like a haircut).

Another lesson from a grandchild

Yesterday I shared how 6-year-old Josh, after receiving 11 stitches, had no fear of getting back on his bike and racing once again, against the NASCAR drivers. I'm sure he won again today. Kids' unquestioning attitude of winning, getting back up and doing again, exemplify how we as adults should look at life. Put the failures, the falls, behind you and move forward, expecting success.

Granddaughter Olivia provides a lesson of perseverance. She had the dream of making the Danville Middle School Volleyball team. Knowing she needed to learn the sport, she attended two camps during the summer, getting ready for tryouts. And the tryouts were rough! Running, practicing skills, running and more running. Learning about teamwork and supporting the other girls. Sticking with it even when you're feeling sick and think you can't take another step. We had a lot of talks during the tryout days about showing enthusiasm, showing determination, showing hustle - showing guts. Good lessons in life that she's learning now.

She made the team! And now I'm hearing excitement in her voice and new-found self-confidence. Whether you're a pretend NASCAR racer or a real 11-year-old volley ball player, when you know deep down that you are good - you will succeed.

Great life lessons for all of us.

Face down, kissing the sidewalk

Our six-year-old grandson is a huge NASCAR fan, and can name most of the drivers and their numbers. As all kids his age do, he was in the moment when he suddenly found himself face down kissing the sidewalk.

In Josh's words, "I was riding my bike and racing Jimmie Johnson (his favorite driver). We were leading and I went really, really, really fast and I won! So I was waiving to my fans and my bike got wobbly and it fell over."

This telephone conversation took place last evening while he was at the hospital. When I asked how he was, he said, "It hurt at first, but I'm OK now. I need some stitches is all." And when I asked about the bike, he informed me that it was fine and he'll be riding - and racing - again today.

Many times, as business owners - and all adults for that matter - we have enjoyed winning. And how many times have we found ourselves face down kissing the sidewalk? At that point, many don't get back up and say, "I'm OK now," but instead give up, never to win again.

Josh has taught us all a lesson - enjoy your success, appreciate the moment, thank your fans. And when you fall, get back up, tell yourself you're OK and get in the race again. Life is too short to sit it out.

That feeling in the pit of your stomach

Ed Aide is the owner of Modern Maid, a Residential and Commercial Cleaning Service Company which he purchased in 1990. To maintain the growth and development of Modern Maid, he gives a hands-on approach toward customer service through surveys, promotions and suggestions. Not just your typical cleaning service, Modern Maid also provides carpet cleaning, window cleaning, chandeliers, gutter cleaning and painting.

Lorraine was walking through the Convention Center and suddenly realized that her tennis bracelet was no longer on her wrist. Oh my gosh! You know that sinking feeling you get in the pit of your stomach when something like this happens? That’s what she experienced, because this was a very expensive piece of jewelry. In a building this size, with the mass of people in attendance, it was impossible to find the bracelet. This was years ago, and we didn’t realize the need for a jewelry rider, so we experienced a sizable loss.

Fast forward to the day I met Mike and Cindy. I immediately realized the need for their service. To know what we own, and have it properly insured, gives me a sense of comfort. I now have a written list and photographs so that if, God forbid, something catastrophic happens. We’ll be able to recover from our loss quickly and receive a much better settlement from our insurance company. This is because they not only provide an excellent service, but they also discuss the need for riders and have a good understanding of the insurance industry.

My customers have suffered losses due to floods and burglaries. I know how valuable this inventory service would have been for them and recommend they get an inventory of their belongings, too. I also witnessed a business associate suffer a total loss from a fire. They have rebuilt, but it was a long, stressful ordeal. If they had an inventory prepared prior to their fire, they would have been able to complete their claim faster and most likely would have been able to list things they most likely forgot to include on their claim.

Since I’m a business owner, I know the importance of hiring a professional service. For the same reasons people purchase my cleaning service (don’t have time, don’t want to do it themselves, prefer to spend the time with family), I chose to purchase this inventory service. I don’t have the time to create this document with the efficiency and thoroughness they provide. Plus, it’s cost-effective for me to hire this service so I can be doing what I do best – serve my current clients and spend the other time meeting new customers.

A very important part of the estate settlement process

A native of Brownsburg, Indiana, Sarah Heck, of the Law Office of Sarah Heck, has 10 years of experience helping individuals and families of all kinds with their estate planning, probate and elder care needs. The biggest reward for her is seeing the relief on her clients' faces after they have come to see her. Sarah says, "Clients are often struggling with so many concerns, and after getting more information and talking through the issues with me, they feel so much more at peace with whatever decisions they have made. I love helping people take control of their futures like this."

Many people who experience the death of a parent, spouse or other close relative are not prepared for the myriad of tasks involved in settling the deceased person’s affairs. If a personal representative is appointed by the court to administer the estate, state law requires that a formal inventory of the estate be prepared within two months and distributed to any beneficiary who requests it. Even when an estate does not go through probate, such as when assets are held by a revocable trust, an informal inventory of the estate usually must be prepared for inheritance or estate tax purposes.

Completing an estate inventory for probate or tax purposes can sometimes be a cumbersome process. Date-of-death values must be obtained for all financial assets such as bank accounts and investments. Any real estate must be appraised on the basis of comparable sales. Vehicles can be valued online through websites such as kbb.com or edmunds.com. Unique assets such as oil and mineral rights, private mortgages or family business interests may need to be valued by an expert appraiser with the cost potentially running into the thousands of dollars.

Tangible personal property is sometimes the most difficult type of asset to value in an estate for a number of reasons. Survivors may not recognize the value of certain items, and at the same time may over-value other items for sentimental reasons. The process of itemizing a decedent’s belongings can be extremely time-consuming. Also, the failure of a personal representative or successor trustee to properly secure the decedent’s property may mean that some items may go missing and never be valued at all.

For these reasons, having a proper, formal inventory with valuations of all of a decedent’s belongings is a very important part of the estate settlement process. Not only is such an inventory required under the probate law, it is also necessary to properly value the estate (and each beneficiary’s share) for inheritance or estate tax purposes. Moreover, having the inventory may be extremely helpful to the personal representative or trustee who is responsible for dividing the decedent’s belongings among the beneficiaries.

Bonding is not just for college kids

Yesterday I noted how doing an inventory with your college-bound student can serve as an opportunity to spend some time with him or her before they leave. It will also help you "get a grip" about them leaving, as you sort through and document, piece-by-piece, what they're taking. Helps with the reality of it all.

There is also another generation that will benefit from an inventory. And you'll benefit from the bonding that will take place. That generation is your parents (or grandparents). We talk about settling estates, and how important and helpful it is if the deceased has an inventory already completed. If your parents or grandparents don't have one, this is a great opportunity to secure some valuable time with them while you create their inventory (we'll be happy to come in and help while you spend time listening to the stories!).

Think of the walk down memory lane they could take you on! Who chipped the cookie jar lid? Which child did their homework on the dining room table and left the math lesson for all to see? Who bought the first piece of what now is an extensive collection? Which grandma sewed that quilt oh-so-many years ago? The memories that will be shared - all spurred on by creating an inventory! And the memories you'll now have to share with your children and grandchildren!

Inventory - a time to bond

Monday's post, titled "Whatcha got there?" discussed the importance of creating an inventory of the items your college students are taking with them to campus for the school year. Important and helpful information, obviously.  But taking the time to compile a personal property inventory does more than just record your/their belongings. Believe it or not, it provides an opportunity for some bonding time.

I remember the year our oldest son was preparing for his first year of college. The last few months of high school and that following summer were exciting, scary (fear of the unknown), happy, sad, happy/sad - all kinds of mixed up emotions. For me, not him!

I wish I had known then how important it was to have an inventory. What a great excuse to grab an hour or so of uninterrupted time with him! And I can imagine how much easier it would have been to let go by going through this process. Slowly, as we listed each item, counted the CDs, took pictures, it would have been quite therapeutic for me. Letting go - one item at a time - would have symbolized his footsteps out the door. Never to return the same person he was that day. Something to cherish!

On a Sunday? You answer your phone on Sunday?

It's Sunday afternoon and the telephone rings. 

"Hartman Inventory, Cindy speaking."

"Oh! I expected to leave a voice mail so you'd get this first thing Monday morning." He sounded a bit frazzled, but I figured it was just the surprise of me answering the phone. (The reason we answer our phone whenever it rings, is because disasters don't always happen during regular business hours. If a customer needs a copy of their inventory, we certainly don't want them to wait until Monday morning.)

As we continued the discussion, I found out that he was in quite a bind. He was required to provide the complete list of assets during a business meeting at noon on Monday, and he couldn't find his copy that we provided to him two years ago. So in a sense, I guess it would be his own personal disaster if he couldn't provide what was needed!

Within minutes, I was able to send him the complete asset inventory and he was able to relax and have peace of mind for the next day's meeting. Another reason to keep a backup copy of the inventory ... you just never know when - or why - you'll need this information!

It just feels SO good when we are able to help a customer - even on a Sunday!

Whatcha got there?

August! This time of year brings tears to many parents' eyes - some sad, some filled with joy. It's time to pack and say goodbye to your college-bound children as they head to campus for the 1st time - or the 2nd, 3rd, 4th and sometimes even 5th time!

As they gather all the items they are taking with them, create a personal property inventory. This will be extremely helpful in case there is a fire, theft or other disaster. It's too difficult - especially under the stress of having just been through a rough experience - to remember everything. Think of how much a college "needs" these days ... laptop, printer, iPod, television, radio, CD player, DVD player, headphones, camera, sports equipment, musical instrument, lamp, clothes, linens, jewelry, DVDs, CDs and more!

Then, if there is a need to file an insurance claim, they will be able to provide the proof of ownership immediately to the police and/or campus authority and you'll be able to begin the claims process immediately with the insurance company. You'll have yours completed, money in hand from the insurance company and your new items purchased, while others will probably still be trying to remember everything!

The easiest way to create this inventory is to take a photo and list each item as you gather it. List the manufacturer, model number, serial number and what you paid for it. Photos are helpful, especially when you state how many CDs, DVDs, jewelry and clothing items. This keeps you from having to list each one, as the photos will support your claim. One college student told me that when he had a theft, the insurance company asked him to provide a title for each CD he claimed as stolen - they needed some type of proof. With a thorough list and good photos, you'll be able to do that.

We all hope there will never be a need to file an insurance claim, but we all know it does happen every day. The best way to protect yourself to ensure a sufficient insurance reimbursement is to prepare by having an inventory of all of your belongings.