Common answers when I ask people that question are that they:
- have a home inventory
- make sure their insurance is sufficient to replace the losses (proven by your home inventory)
- have the collectibles, artwork, firearms, etc., scheduled
- have a security system
- keep their high-value items in a safe at home or in a bank safe deposit box
Other viable actions taken, but often said with smiles on their faces, are that they:
- live near a fire hydrant or a police station
- own a gun
- have a big – very big – guard dog
Some even decide to sell their items.
An article in the Cleveland Plain Dealer, John Havlicek’s 1960 Ohio State basketball championship ring among items up for auction, discussed the reason behind the basketball great’s reason to sell his championship rings from his years as a Buckeye and a Celtic. There are many other memorabilia that he also sold at auction. His explanation? According to the article, “Havlicek said he is so worried about something happening to some of his memorabilia that he would rather sell it now and get it into the hands of people who want it, rather than risk losing it.”
Guess it’s time to start marketing our inventory service to those who are the recipients of these auctions, because someone wants these items. Once the purchase these collectibles, they will want an inventory of these valuables to prove ownership so they can protect their assets and ensure their financial future. After all, it’s not the sentimental value – these purchases are strictly a financial decision. An inventory of these collectibles is certainly a document they will need!
I hear a lot of comments regarding insurance company policies and procedures after someone experienced a loss from a fire, burglary, or natural disaster. These conversations happen at parties, open houses, networking events – you name it, these conversations come up. Why I’m involved in so many is because I own a home and business inventory company.
So, what is not uncommon that people are talking about regarding insurance companies?
- You’ll be asked for serial numbers.
- You’ll be asked for model numbers.
- You’ll be asked for the name of the manufacturer.
- They will expect you to list what you paid for each item.
- They will want to list the fair market value of each item.
- You’ll be asked when you purchased the item/how old each item is.
- You’ll be required to provide a detailed list of what was damaged, destroyed, or stolen. And the means every single item you want to be reimbursed for. That includes food, cleaning supplies, cosmetics, decorative items, in addition to your large ticket items.
How do I know this? In addition to providing an inventory service for disaster preparedness (creating the inventory now, before you need it), we also assist with after-loss inventories. We have listed items for replacement that include the number of
- tubes of lipstick
- rolls of toilet paper
- bottles of laundry soap
- pods of dishwashing detergent
- bottles of nail polish
- boxes of cereal
- cans of food
The list can go on forever, as you can see. So, when people express what they had to go through to list their losses before receiving reimbursement from their insurance company, our reply is, “This is not uncommon.” I just wish more people realized the importance of having an inventory prepared while everything is still in one piece!
Guest Post: Fishbowl Inventory discusses the various reasons to document and track your company inventory. Whether raw goods or personal property, such as equipment, furniture, electronics, knowing the value of your business assets is essential for many reasons.
Tracking your business inventory can save you from a serious financial problem if disaster strikes. Insurance companies need exact details filled out on your claim form. If you do not have accurate records, you could lose hundreds of thousands of dollars. Your business will also struggle to acquire the money needed to buy or repair equipment, the building, and paying for lost income. With accurate inventory tracking, you can easily manage every detail related to your business. Here are three reasons why you need to track your business inventory.
Instigate a Tracking System
To start the tracking system within your business, you need to purchase software. Consider using a cloud storage drive to save your information. Using a cloud drive will prevent you from losing the data in case a fire or flood damages the information you have input. Inventory tracking systems allow you to maintain accurate records. They will record all purchases and will provide a year-end report. This information is helpful for taxes and other business records. Accurate tracking of your inventory will assist with sales goals and purchasing times. If you are worried about when to buy additional raw goods or other supplies, an inventory tracking system will help. The system will give you an average of the past few months, providing you with a general idea of your sales.
If you do not track your inventory, your insurance coverage may not be high enough. Most businesses will start to acquire new assets and inventory items the longer they are in business. If you have not updated your inventory spreadsheet, your insurance might not even cover the costs of a disaster. For example, if you own a pizza restaurant and a fire destroys your business, the insurance adjuster will provide an estimate to the insurance company. The insurance company will then look at your total coverage amount and will replace everything that is covered on their plan. So if you forgot to add your new $14,000 walk-in freezer system or oven, you may not be eligible to have them replaced.
Not only do businesses need to recognize the costs to their personal income and business income, a disaster can cost them customers. Customers may not wait to return to your business for future orders as you repair your business. This is concerning for small business owners as you already struggle to make a name for yourself. Theft is another concern with inventory tracking. If you do not have a system that tracks every single item in your store, your theft loss can be extremely high. Some business owners do not even realize how many employees or customers are stealing items right out of their inventory.
To prevent your insurance company from short-changing you, create a video inventory. A video inventory will include everything in the store along with information about everything. You need to keep receipts, credit card statements, maintenance records, and other documentation on your inventory. Scan these items and save them to your cloud drive and then store everything in a fire-safe box. In the event of a disaster, your entire store is documented on a video and in an Excel spreadsheet. This will help the insurance company when you are filing claims and will prevent you from additional income loss.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business.
What many people don’t know is that their homeowners insurance policy has limits on specific items. We had this discussion twice last week, in fact.
When we’re taking the photos and recording the serial numbers of firearms, and there are more than just a few, we ask them if they have them scheduled (sometimes called a rider). The reason for the question is that most policies have a limit of what they’ll pay if firearms taken during a burglary. This average limit is $2000. So, if you have weapons worth more than that, you might want to consider purchasing a rider.
The same is true for jewelry. The value of fine costume jewelry can add up very quickly, and many of our clients easily exceed their policies’ limits. Cash, antiques, collectibles, and others items can be included in the list of items that are subject to a limited pay-out.
No matter what the full value of your homeowners coverage, the limits mean exactly that – a dollar limit on what you will receive if these items are stolen.
So the old saying of what you don’t know can’t hurt you is SO not true when you’re talking about insurance. Talk to your agent. You aren’t required to purchase additional insurance, but after learning what your loss would equal, and comparing that to what a scheduled item would cost, plus what you are willing to risk losing, then you will be able to make an educated decision.
After we deliver the inventory portfolio, many of our customers take the information to their agent; we’ve been told by agents and our clients alike that it was very helpful in guiding them what to schedule, and for what dollar amount as well.
By now, you’ve probably ticked off some of the gifts you’ll be purchasing for your holiday celebrations, but most likely still have quite a few to purchase. Your car might have just a couple items, or you might have the trunk jam-packed full.
Unfortunately, thefts are typically up during the holiday shopping season. Though you can never completely remove the risk of theft, there are special precautions you can take to help deter a would-be burglar from taking items from your car, truck or van.
With that in mind, here are the top 5 tips to help reduce theft from your vehicles:
- Shop at populated retail centers, and during daylight hours whenever possible.
- When shopping at night, park in a well-lit area, preferably close to the store or mall entrance.
- Avoid parking between two large trucks, vans, or SUV’s, because thieves can hide between the larger vehicles.
- Hide your purchases in the trunk or under the hatchback cover.
- Don’t leave your new purchases in the car even when in your own driveway. According to the FBI, more than one-third of all vehicle thefts occur at a home or residence.
This information was provided by Heather Penwell of Penwell Insurance in Cicero, Indiana. 877-773-6935.
Christmas music is playing, Santas are ho-ho-ho-ing and you’re out shopping for those specific gifts that will bring joy to your family and friends. Yes – the holiday shopping season is upon us. If your car is full of gifts that you have purchased, and they are stolen, the joy of the season will be quickly replaced with anger and sadness. Will these items be replaced? Is this loss covered by your homeowners insurance?
Gifts (and all personal property items) in your car would be covered under your homeowners or renters insurance policy, above the amount of your deductible. If you don’t know what your deductible amount is, refer to your insurance policy or contact your agent.
There are limits on many common gift items, such as jewelry and collectibles. When purchasing a gift of high value, you might want to consider scheduling it on your homeowners policy or obtain an inland marine policy (rider) until the recipient opens it and has it insured. If you are robbed before you give the gift away, you are subject to the limits of your policy.
A special tip: Many people keep the receipts in the bags as they shop. Since you’ll need proof of purchase if your shopping spree ends in a burglary, keep the receipts in your wallet or purse. This will enable you to remember what you purchased and the value of each item.
Thank you Heather Penwell for this helpful information. Contact Heather: Penwell Insurance 877-773-6935.
Laura Bergan, vice president of sales and marketing of American Collectors Insurance, authored an article titled, “Modern Day Heists: Top 10 Collectibles at Risk”. The article was published on Property Casualty 360, a national underwriter website. Bergan stated that according to the FBI, burglaries in 2010 topped $4.6 billion of personal property. Based on today’s economy, we feel confident that the amount will be even higher in 2012. The majority of the burglaries (74%) are residential, with jewelry, art, antiques, collectibles and electronics proving to be the most sought-after items.
According to this article, here are the top 10 items that burglars look for when helping themselves to your belongings:
1. Antiques - These rank #1 because they are hard to trace and easy to resell.
2. Sports Cards - Baseball and football card collections are a primary target.
3. Coin Collections - Like antiques, coins are easy to steal and easy to turn over. Many are unaware of their worth, and just take them for the face value. One incident proves this reality: thieves went to a coin counting machine and got $450 for the coins they stole from a collector in Oregon. Luckily, the coins were returned to the owner; they were worth thousands of dollars!
4. Crystal & Glass - Crystal pieces, depression glass, and stained glass items are popular with thieves.
5. Die-Cast Models - This is a huge collector market. Bergan states that a model of Slave I, Boba Fett’s starship from Star Wars, was recently purchased for $779 on eBay. Not a large amount, but easy to sell. Enough $800 items can certainly feed and clothe someone!
6. Dolls, Stuffed Animals and Doll Houses - Barbie dolls! A collection of 25 dolls, stolen in Virginia, was valued at $2,000! Sound high? Well – that’s nothing compared to the Barbie collection valued at $1 million.
7. Entertainment, Media, Movie and Record Collections - CBS was a victim of a burglary of movie posters. Value? $450,000.
8. Figurines - Before you put those silly little figurines Aunt Betsy or Grandma had in their house out in a garage sale, check their value! A stolen collection of Steuben Crystal glass figurines were valued at more than $15,000.
9. Guns and Fishing Gear - Thieves target shot guns, rifles, pistols, fishing poles and all types of fishing equipment.
10. Military Gear and Historic Collections - Any item of historic significance can be stolen. A Civil War flag was stolen from the Indiana War Memorial Museum. Ten years later, the flag was recovered. Valued at $50,000, it is now back with the museum.
As you add items to your collections, don’t forget to have them appraised. If you have an inventory (you do have and inventory of all of your belongings, don’t you?), have your nationally certified inventory professional update your information so you have current photos and descriptions of each item.
Many people ask me what made me start a home inventory business. I’m sure most personal property inventory professionals have the same answer that I have – “I like helping people.”
What encouraged me to create our nationally certified home inventory service is that I knew the struggle of trying to remember what was missing when we were burglarized.
Then, during the emotion that envelopes you after someone had the nerve to just come in and take things that don’t belong to them, listing what was missing was very difficult. Questions constantly run through your head – questions like:
“What was the manufacturer of that lawn trimmer?”
“What the heck was over there in the corner?
“What was next to the mower?”
“How many rakes, shovels and brooms did we own?”
“That shelf is empty-what was on it?”
It’s a tough, difficult time, especially when you know you’ve forgotten items that you’ll never get reimbursed for.
Providing an inventory for business owners, home owners and renters really does make me feel good. I see the sense of relief when I deliver the finished packet to my clients. They have purchased peace of mind, knowing they have the information necessary to file a thorough insurance claim. What a great way to help people!
It’s a feel-good, do-good service and there are so many reasons people need to know what they own. The opportunities to serve are endless. I heard somewhere that helping others gives success true meaning. What a wonderful way to spend each day!
We often chat during the inventory process and get to know our clients quite a bit. While completing an update for a long-time client, he told us a story that isn’t new. Unfortunately, it is one we’ve heard many times before.
One of his friends was burglarized (he gave them our contact information). The police believe he knows the perpetrator – probably a neighbor. Why do they think that? Because he posted on Facebook where he was. And just twenty minutes later, someone broke into his house!
I’ve cautioned about this practice of telling people you aren’t home before. Many police departments recommend people not post where they are. Insurance companies suggest people not state that they are away. Same with posting photos when you’re on vacation. But, the practice continues. Posts on Facebook and Twitter shout it out to the world. Four Square tells everyone where you are. When you check into a restaurant, that tells the burglars they have at least 1-1/2 to 2 hours before you’re going to be home. It’s almost like saying “the key is under the mat – the welcome mat!”
One of Hall & Oats’ hits, “Private Eyes,” says it best even these many years later. “Private eyes, they’re watching you. They see your every move. Private eyes, they’re watching you. They’re watching you… watching you… watching you…”
Filing a personal property insurance claim can be a daunting task. When someone has just experienced a devastating loss from a fire, theft or natural disaster, they are ridden with high emotion and stress. This makes it extremely difficult to compile and process a thorough insurance claim.
A home or business inventory document will serve as a valuable reference for anyone as they list their items that must be replaced. Unfortunately, according to a HomeInsurance.com survey, only about 40% of homeowners have a home inventory.
The survey also found that of those who do have an inventory, only about half of them have any receipts. Another unfortunate piece of information is that about 25% don’t have photos of their contents nor a backup copy located anywhere but in their home! Those who do have a list admitted that they were more than a year old.
As I speak with insurance agents, they state that their experience would indicate that these numbers are high. They believe that the vast majority of their clients do not have any information at all, even though they encourage each one of their policyholders to create an inventory.
Many aren’t aware of the need for homeowners, renters and business owners to have a thorough, detailed personal property inventory. Until one experiences a disaster, it’s rare to pay attention to insurance, let alone a document to help support an insurance claim.
Visit any insurance company website and you’ll see statements that you should have an inventory of your belongings. The insurance claim process will be much easier. Imagine sitting at someone else’s house – or a hotel room – after your home was destroyed. You will be required to list every item you want replaced. You’ll need to list all of your clothes, jewelry and shoes. You’ll be required to list all of your electronics and appliances, every piece of furniture, decorative items, dishes, and bake ware. Garages can become a catch-all area, but you’ll want all of those items replaced. Many people can’t remember what was in their home, of items used every day, let alone items that are stored in the garage and possibly used just once a year.
You will also be required to list the replacement value of each item. If you don’t have a model number available, it will be very difficult to prove the value. There are large variances in TVs, computers, power tools, appliances, etc. When you can’t prove that they are of higher value, you will have no option but to accept the settlement offered.
Another key issue is how many you have of specific items. The majority of people underestimate how many CDs, DVDs, video games and items of clothing they own. This often results in tens of thousands of dollars not received just because the disaster victim didn’t know what they owned.
The insurance claims process can be very daunting … but it doesn’t have to be. Having a home inventory can lessen the pain, speed up the process and result in a much more equitable insurance settlement.