Photo Asset Archival

BOOK PREFACE : Why Should You Act Now!

Lizz — Mon, 15 Sep 2008 00:25:28 +0000

PREFACE Why Should You Act Now?The author was trained from an early age to step-back and think about what needed to be done and how to reach the goal by developing a well-thought-out plan. Following the example set by her mother, she learned to think broadly, make lists, organize, learn from life’s experiences, account for her assets, use her assets to best advantage, and share her talents with others. It is the author’s desire to give great value by sharing her experience, talents, and knowledge with her readership. Having firsthand knowledge that bad things happen to good people, the author uses stories, an explanation of the process laid out in the book and a series of questions to hook the reader into this positive and challenging way to take control of their assets and their life. The author shares nine true stories that she, a family member, a close friend, or a local colorful character experienced. These stories are designed to nudge the reader out of complacency and procrastination, and into action! 1. December 1982 – I set the thermostat to 60°, set my alarm system, locked the door, and Felix, my dog, and I drove from Atlanta to spend Christmas with my Mother in Virginia. The weather was a balmy 73° and life was good. Two days later, one of those freaky winter storms blew in off the Gulf of Mexico and the temperature plummeted in Atlanta to -5°. Unbeknownst to me, my heating system malfunctioned and 33 pipes burst in my house. Late in the afternoon on Christmas day, my next door neighbors noticed water seeping and freezing into icicles on the brick, from the third story. Thankfully, they had the presence of mind to go to the water shut-off valve at the street. However, the damage was done andit was extensive. Ceilings fell, hardwood floors buckled, wallpaper slumped, paint blistered, plaster separated from the lathe, and a sewer pipe in the basement cracked. Not only did I have a written and photographic inventory of the contents, but I also had a complete photographic record of the restoration process. I credit my mother and my first insurance agent, Larry Baumwald, for encouraging me to complete a thorough contents inventory. The second inventory was pure luck; it existed because the pictures were somewhat of an ego trip documenting my restoration work and progress. Moral of the Story: Know your insurance agent; document your property; protect your property with the correct insurance policy; and take in-progress renovation photographs. 2. August 1986 – While I was in the hospital giving birth to my son, a vicious drought in Virginia was broken by four days of drenching downpour. We had just moved from Atlanta and were staying in a family vacation property. All our worldly possessions, business and personal, were stored in a local storage facility. After spending several days in the hospital due to complications for mom and baby, I went to check on our stored property. The unit had leaked copiously, so bad in fact that the oriental rugs were sprouting mushrooms and soaked boxes had toppled and broken several pieces of 18th century American furniture. The resulting damage was five figures! I had an “Inland Marine Policy,” e.g., everything was scheduled and insured for full replacement value. And again, I was indebted to my first agent, who had insisted that I have this policy. The antiques were restored by a restoration expert; the rugs were replaced with those comparable in age and design. I was made whole because I had the right insurance and my agent had a photographic inventory of all the contents, prior to our relocation. Moral of the Story: Know your insurance agent; document your property; and protect your property with the correct insurance policy. 3. March 1994 – I owned an Equestrian Riding Academy and Boarding Operation. One of my employees stole and pawned several pieces of my business equipment. Apparently, sometime later the pawn broker became suspicious, and alerted the police. My equipment was returned to me by the police because they found the pawn tickets in my employee’s home and the identifying marks on the equipment proved my ownership. The identifying marks were backed up by an inventory inclusive of a comprehensive description, model numbers, and serial numbers. Moral of the Story: I credit the University of Georgia Campus Police Department for educating me about this tactic during student orientation my first semester in college. Inventory and mark your property with an etching device or an ultraviolet marker pen. Police routinely check for identifying marks on stolen property. National statistics indicate that less than 7% of stolen property without identifying marks is returned to its rightful owner. 4. May 1996 – Our recently purchased house was undergoing renovation, and the contractor was behind schedule, so the mover delivered our household contents, storing them in the garage and finished rooms. While I was picking my son up from the airport, an employee of an independent contractor installing carpet in the new house rifled through a number of boxes labeled only with the mover’s ID number. He helped himself to several valuable items and left. Regrettably, my spouse, who preceded me in the move, handled the new insurance policy and failed to transfer our Policy Rider from the old homeowner’s policy to the new homeowner’s policy. The end result was a total loss. Moral of the Story: When changing insurance agencies take all your previous paperwork with you. Communicate with your spouse, business partner or planning team members to insure a smooth transition. 5. 1979, Genealogy – I was extremely interested in my family history as a teenager and young adult. In the pre-digital era, my mother had a local photographer make negatives of photographs depicting several generations of my maternal and paternal extended family and print them for me as a Christmas present; a present I still cherish decades later. Today, digital negatives made and stored off-site insure that families don’t lose touch with their roots. Moral of the Story: Having off-site copies of valuable family images will insure that you have a treasure trove to share with your children and grandchildren. 6. December 14, 2002 – The storm of the century blew through western Nevada; the winds were clocked at 132 mph prior to reaching my ranch. My house barely survived; and only because half the dwelling had 18” thick adobe walls. A four inch layer of desert alkali covered everything inside the dwelling because the sustained winds caused the window and door seals to fail. My outbuildings, wheel-lines, well pumps, electrical sub-stations, and farm equipment fared even worse. When I opened the door to my house, after the wind died down sixteen hours later, I literally did not recognize my ranch. Once orderly alfalfa fields were strewn with roofing material, splintered boards, mangled wheel lines, baling twine, and all manner of unrecognizable flotsam and jetsam. Electrical substations had literally been ripped off their foundations; outbuildings were either without roofs or flattened altogether; 3000 gallon fertilizer tanks had simply disappeared; and several tractor tires had been slashed to smithereens by flying debris. I remember thinking I could laugh or cry, and in an effort to be light-hearted I clicked my heels and literally said out loud: “Dorothy! You’re not in Kansas anymore!” It would get worse. My ranch policy was a perils policy, which mainly covered fire and theft, not wind damage. I thought all my equipment and the damage to the contents of my home were covered; they were not. I would receive a check for approximately 6% of my losses. Moral of the Story: Read your policy from cover to cover when it is issued to make sure you are getting what you need. Never make assumptions. Ask about Wind Coverage if you think you might need it. 7. Caregivers – When I was a little girl, I was intrigued by my grandmother’s spoon collection. The spoons were arranged on an étagère-like piece which hung in her dining room. One spoon in particular has always stuck in my mind. It was the only remaining piece of my great-grandmother’s sterling silver flatware. My grandmother always lamented that it was too late when she realized what had happened.Great-Grandma’s caregivers had walked off with everything! Moral of the Story: Let in-home and assisted living caregivers know that a photographic inventory has been completed. It will save a lot of heartache. 8. The 2007 Executrix Nightmare – The aunt of a dear friend of mine recently passed away in southern California. An acquaintance of the deceased declared to the family that she had been appointed the Executrix of the estate, but flatly refused to produce the will, provide supporting documents, provide the name of the attorney who prepared the will, or commence Probate. Subsequent investigation has revealed that the Executrix disposed of the household contents, put the house up for sale prior to the deceased’s death, and gave away the deceased’s intellectual property; valuable unpublished manuscripts. Even though the state of California has very specific and stringent statutes dealing with Probate, the Executrix’s actions, particularly the failure to produce the will, file the will, and the failure to file an estate inventory, required under California law, have prompted the family to retain an attorney to sort out the situation. Moral of the Story: Inform your family of your wishes before it is too late. Provide your family with your attorney’s name and contact information. 9. A Reno, NV Legend = What Not To Do! – Don’t be like Lavere Redfield, the eccentric Reno, Nevada millionaire who, at his death in 1974, had over 17 tons of uncirculated silver dollars hidden behind a false wall in his basement. He left instructions in his will not to tell the IRS! He should have known better, after the time he served in 1960 for income tax evasion. In 1963, his house was burglarized, and it was reported that approximately 100,000 of the silver dollars were stolen. That is probably what encouraged him to build a false wall in front of his coal bin. The IRS was on his doorstep after his death and went through his home on Mt. Rose Street. Once they broke through the wall, they hauled away the silver dollars in armored cars. After the auction, Uncle Sam got a huge cut of the $7.3 million proceeds.The estimated value of the uncirculated silver dollar collection was over $20 million. Moral of the Story: The IRS has a long memory and more money could have gone to his family and heirs if he had used the services of an estate planning attorney.SECTION 1Why Do An Asset Inventory?BECAUSE ACCURATE COMPLETE KNOWLEDGE =ULTIMATE PROTECTION! It is the rare person who goes through life without being thrown a curveball or two. Wildfires, earthquakes, tornadoes, hurricanes, and floods destroy the property of thousands of individuals, business owners, and communities every year. Divorce often results in the loss or sale of family heirlooms where assets have been co-mingled or were not properly documented as separate property. Taxes are paid that might have been avoided when an estate plan is not comprehensively designed to meet changing tax laws. The elderly and disabled suffer at the hands of dishonest caregivers who help themselves to property which does not belong to them.In this section the author explores the beneficial outcome which will result from completing a thorough asset inventory. The author poses a series of thought provoking questions followed up by comprehensive yet succinct answers. The questions are devised to assist the reader in formulating a wealth protection strategy that fits their individual needs and can be easily adapted to multiple planning applications: insurance, estate, financial, tax, and business. The topics covered proceed in a logical progression: Who needs an inventory? What needs to be inventoried? When should an inventory be updated? Where do you keep an inventory? Why is third party asset validation important? How does one evaluate the members of their planning team? Discussions range from who should have an inventory to what one can learn from conducting an inventory as it relates to insurance, estate planning, tax planning, business planning, and other legal matters such as pre-nuptial agreements, divorce, and protecting the assets of the elderly in caregiver situations. Information is provided about how to find and evaluate an appraiser, estate planner, and insurance agent. The reader is encouraged to get an insurance, estate, tax, and financial planning check-up as a part of the inventory process as well as become familiar with the tough money questions that need to be asked. This section concludes with a discussion of nine immediate benefits derived from doing a personal asset inventory. SECTION 2Planning Your Asset Inventory Everything worth doing requires a game plan backed up by a thorough understanding of the process and the equipment needed to accomplish the task. This section provides time-tested documentation strategies, tips, and techniques to enable the reader to proficiently accomplish the process. All the processes and equipment usage are explained to reach readers with skill sets ranging from novice to knowledgeable. The intention is to interject fun into the process and have the reader walk away with new skills that he or she can use in other aspects of their daily lives. This section provides a straightforward discussion of the basic equipment needed, as well as additional accessories which will make the inventory a more valuable document. It addresses how and where the reader obtains valuations for the property being inventoried and the suggested documentation methods for obtaining a thorough visual record of every type of an asset. The success of any project is determined by the workability of the workspace in which it is accomplished. Workspace set-up and maintenance throughout the project should be based on a game plan incorporating a timeline of tasks to be accomplished and the type of information to be recorded. Therefore, a comprehensive discussion is devoted to how to organize the information you need on-hand, how to organize the information you assemble, and how to archive the data your collect. SECTION 3Doing Your Asset InventoryThe key to a successful inventory is sequentially following a feasible timeline and game plan. To do this the reader must have absolute confidence in his or her equipment and skill level. The book effortlessly walks the reader of all levels through the imaging and database skills needed to accomplish the tasks. The accompanying CD provides visual lessons to cover all the photography techniques covered in the book. The objective is to level the playing field for all skill levels and make the process fun. The photography tips and techniques are geared to enable everyone to take good inventory photographs no matter whether they are using a point-and-shoot, prosumer, conventional SLR, or digital SLR camera. While new subject matter and new techniques may at first appear intimidating, this section will guide the reader gently but quickly through their own learning curve. These lessons will not only ensure an accurate and informational inventory, but will leave the reader with photographic skills suitable for website marketing, marketing a home or business product, and recording beautiful “memories” to share with others. The photo-scanning tips and techniques are geared to create high resolution images suitable for printing from a photo-editing program. Photo-scanning photographs, slides, stamp collections, coin collections, and paper documents provide flexibility in observing detail and re-sizing/up-sizing an image should it be needed to create an “exhibit” for legal purposes. An added benefit of mastering high resolution photo-scans is their ability to be cropped or enlarged when marketing a house or selling a collection.The videography tips and techniques are geared to enable everyone to take information packed video. This section is not about art, but instead stresses how to do a room overview and the techniques necessary to safely obtain information from every nook and cranny in a room or building. The database tips and techniques are designed to effortlessly walk novice to knowledgeable through the inventory database set-up process. Even though a pre-designed inventory template is included on the enclosed CD, this section is included for those who wish to alter or expand upon the template. The template is a no-nonsense approach to recording all the information you need for insurance, estate, tax, financial, and business planning purposes. The beauty of this inventory set-up is that the inventory comes alive with the insertion of images and the ability to link all the data in one place.The more useful tips section is designed to get the reader thinking about all the back-up information and technology they need in their life outside of the inventory. All too often we have the basic information we need on-hand, but fail to apply protection strategies which would make this information more valuable and our lives safer and less complicated. Seven tips are showcased to encourage the reader to evaluate their lives more closely and take precautions which will enhance the quality of their life. SECTION 4:Working With A Pro On Your Asset InventoryDocument Assets To Assure Backup Accounting Secures Everything This section discusses the services and the nine-point guarantee offered by Virtual Image Solutions, LLC in Northern Nevada and Northern California. It is equally applicable to assist the reader in analyzing the services of others offered outside of this area. Additionally, this section includes appendixes, a glossary of terminology, references and resources, and an extensive index of subject matter. Appendix A provides web address, phone number, and physical address for eighty-five (85) appraisal, valuation, and security resources. Appendix B covers four (4) essential techniques for assembling your personal emergency preparedness kit. Appendix C provides a sample inventory timeline based on a 2400 square foot house. Appendix D provides a sample page from the pre-designed inventory template included on the CD. The glossary covers sixty-nine (69) inventory terms and definitions the reader needs to know for insurance, estate, tax, financial, and business planning. The references and resources section provides fifty (50) web address, phone number, and physical address for bibliographical references and resources cited in the text. A comprehensive index provides topic specific pagination.

Book Overview: How To Create A Photo Asset Inventory And Protect Your Investments From A Catastrophic Loss

Lizz — Fri, 12 Sep 2008 17:45:58 +0000

How To Create A Photo Asset Inventory And Protect Your Investments From A Catastrophic Loss

By Lizz Stanley

Following on the heels of what seems an annual increase in catastrophic natural disasters, such as the 2007 and 2008 California Fires; Hurricane Fay, Gustav, and Ike in 2008; the devastating 2008 Midwest floods; the 2008 tornadoes in the Midwest and in Virginia; and the 2008 earthquakes in Nevada and Illinois, How To Create A Photo Asset Inventory provides readers with information and resources destined to improve their capacity to make informed decisions regarding risk exposure and disaster awareness and preparedness when attempting to protect their standard of living and their loved ones.

Natural disaster, an uncertain economy, the ambiguity in insurance coverage in determining which came first the flood or the wind event, and tentative estate tax law modifications scheduled to sunset in 2010 are just some of the dilemmas which create an unappetizing recipe for a personal or business tragedy without a well-designed life plan. Additional benefits will be realized by the reduction in widespread complacency towards disaster preparedness; consumers will become more accountable to themselves and their community through better preparation; and local governments, FEMA, and the American Red Cross will be able to provide a more rapid recovery at a more effective and economical cost, so that disaster stricken communities will be able to rebuild more quickly, before lost property and sales tax revenue further stifles the local and regional economy.

Ask people to visualize a relaxing condition, and they imagine the soothing sounds of a fire crackling in the fireplace, waves breaking along the shoreline, and leaves rustling in the wind. Nobody comes up with a hurricane, tornado, earthquake, or wildfire. Ask people to relive enjoyable memories, and they reminisce about their wedding day, the birth of a child, and vacations they have taken. Nobody comes up with being burglarized, the death of a loved one, a natural disaster, or their house burning to the ground.Being relaxed and getting the most enjoyment out of life is all about the choices we make; the winning strategies we utilize; and the safety nets we create and put in place to protect ourselves, our families, and the fruits of our labor. In the event of a catastrophic natural disaster, a fire, or the death of a loved one will the reader’s safety net be strong enough for a safe landing? Most people spend their whole lives building wealth that can be swept away in minutes. All too often people fail to plan for a catastrophic event because they think it will never happen to them. If the reader thinks it won’t happen to them; think again. Wildfires, earthquakes, tornadoes, hurricanes, and floods destroy the property of thousands of individuals, business owners, and communities every year. Every ten seconds a home is burglarized in the United States, and it is estimated that seventy percent of the population does not have a living will or an estate plan.Ask most people if their safety net has holes in it and they will answer yes. The excuses for failing to document personal and business property range from: “I don’t have the time to do it” to “I don’t know how to do it.” How To Create A Photo Asset Inventory, by Lizz Stanley, provokes homeowners, business owners, and renters of all ages to take control of their financial lives, become organized, and have fun while learning new skills which can be used to improve many areas of their everyday lives. Will a consumer be able to prove 100% of their losses and receive full reimbursement from their insurance claim? Completing a pre-disaster inventory takes discipline and planning, but when compared to a forensic inventory, an inventory after the fact, it is far less agonizing, time consuming, and emotionally devastating. In the event of the death or disability of the reader, a spouse, or family member, does the family have a golden parachute or will their standard of living take a freefall? Will the deceased or their family be able to bypass the costly and time-consuming probate process, limit the taxable estate, or provide long-term care and financial stability for family members? Having an inventory as a part of a living will and an estate plan will insure that wishes are followed, tax minimizing strategies are employed, and the elderly or disabled do not suffer at the hands of dishonest caregivers who help themselves to property which does not belong to them.Will the consumer be able to document the dollar amount of a loss to take a deduction on their tax return? Completing an inventory and valuing property before it is lost will provide the necessary “burden of proof” for the IRS during an otherwise stressful time.How To Create A Photo Asset Inventory is a book for all consumers, business owners, and practitioners alike. The book is designed for those who want to get organized and develop multi-faceted life planning skills and strategies. This time-tested method will simplify their lives; enable them to get control of the things they own; and address questions that need to be answered to craft a valuable documentation tool for insurance, estate, tax, financial, and business planning. Every How To Create A Photo Asset Inventory tip will move the reader closer to accomplishing their organizational and financial goals, while having a lot of fun and learning new skills in the process.However, it is not only consumers and business owners who will benefit from this book, but insurance, estate, tax, financial, and business planners who wisely utilize these concepts to more effectively communicate with their clients. Divulging the extent of one’s net worth to a stranger is a tough topic for most people to talk about. The key points and questions in this book can be utilized to open a line of communication which will ensure an honest and ongoing relationship between consumer and practitioner. The true intent of this book is to propel homeowners, business owners, and renters, into action and educate each of these individuals for preparedness. While an accurate home and business asset inventory should be a part of everyone’s disaster preparation plan; until now a step-by-step inventory blueprint, timeline, and training in digital applications has been unavailable. The process is laid-out in a straightforward manner to efficiently accomplish an inventory which incorporates photography, videography, photo-scanning, and the use of a pre-designed digital database which incorporates written descriptions digitally linked with thumbnail images of images, receipts, and appraisals. The information is presented in a user friendly format using visual tools to assist in the process. The information and resources provided in How To Create A Photo Asset Inventory are destined to improve a consumers’ capacity to make informed decisions regarding risk exposure when attempting to maintain their standard of living and that of their family. Additional benefits will be realized by the reduction in widespread complacency towards disaster preparedness; an alteration of the prevailing perception that a government bailout is an inalienable right in the absence of a proper plan; and a reduction in the occurrence and expense of litigation between the consumer and the insurance industry. In the event of a disaster, if consumers are accountable to themselves and their community through better preparation, the local, state, and federal government will be able to provide a more rapid recovery at a more economical cost. This will have the added benefit of making the efforts and expenditures of government agencies such as FEMA and quasi-government agencies such as the American Red Cross more effective so that disaster stricken communities will be able to rebuild more quickly, before lost property and sales tax revenue further stymies the local and/or regional economy.

PRO-ACTIVE PREPAREDNESS:The American Red Cross Stockpiles and Stages Supplies Pre-Disaster; Reno, Nevada is a Major Player In Assisting Disaster Victims

Lizz — Fri, 12 Sep 2008 08:06:38 +0000

Hurricane Katrina, Rita, and Wilma in 2005, proceeded by four devastating hurricanes which decimated Florida in 2004 (Charley, Frances, Ivan, and Jeanne) taught all of us, whether disaster assistance/relief agencies or individuals and businesses in the path of a catastrophic event, a hard but invaluable lesson. The collective “we” needed to have a viable plan in place. The American Red Cross stepped up to the plate. They created “warehouses” to stockpile “readiness” supplies in advance of a catastrophic event, instead of scrambling to amass supplies after the fact. The Red Cross devised a plan whereby they distributed supplies to potential disaster locations prior to the event, when possible. One of these much needed and recently proven resources is located in Reno, Nevada. The Red Cross Disaster Field Services Warehouse, a 169,000 square foot facility, is located on Parr Boulevard, and since its opening in 2007 has fulfilled the needs of countless disaster victims. This “preparedness” has not only benefitted hurricane victims in 2008, but benefitted a disaster impacted citizenry across the country in 2008. No less than thirty-nine (39) States, not including Protectorates like Puerto Rico, have benefitted from these warehouses due to pre-planning. This information comes from the FEMA website which lists the designated Major Disaster Declarations, Emergency Declarations, and/or Fire Declarations by state. This year (2008) alone, the American Red Cross has responded to the needs of thousands of individuals and businesses whether they be the victim of earthquake: Illinois and Nevada, wildfire: in drought-stricken Western and Southeastern U. S. states, flood: Nevada, and multiple Mid-Western States along the Mississippi River, tornado: Virginia and Mid-Western states with Arkansas particularly hard-hit, or hurricane/tropical storm: the Eastern Seaboard States and the gulf coast states of Florida, Alabama, Mississippi, Louisiana, and Texas.

GOT BACK=UP?

Lizz — Sun, 15 Jun 2008 02:39:14 +0000

Perhaps you are wondering just exactly what I mean when I ask “Got Back-Up?” Back-up is a multifaceted, all encompassing planning process by which you protect yourself, your children, your things, your information, your business, and your wealth planning strategies.
• Insure that when your computer crashes you have the means through external devices, an online service such as Carbonite.com, or a local offsite service such as Offsite Data Depot headquartered in Carson City, NV to recover your personal and business data. Be sure to read the June 11, 2008, Reno Gazette Journal article, “Firms should prep for worst.”
• Insure that should you suffer a disability, life-threatening illness, or death a plan is in place for the care, support, and education of your minor children. A living will, a living trust, and documents which support your wishes regarding the guardianship for your children will go a long way to insuring that your wishes are fulfilled.
• A well drafted estate plan will insure not only that your wishes are fulfilled, but will eliminate the expense of probate and minimize disputes among your heirs.
• The proper insurance coverage substantiated by an asset inventory will insure that damage to your home, vacation property, rental property, business location, and/or home-based business is expeditiously repaired so that you can continue living at the level to which you have become accustomed.
• A video of rental and vacation rental property is invaluable should the property be returned to you in less than perfect condition. Minimize disputes and unnecessary litigation with this valuable tool.
• A thorough inventory including an estimate of value substantiated by receipts and/or an appraisal will allow you to deduct losses not covered by your insurance policy against your income on your tax return. This information is equally as useful when you make a charitable contribution of property. See IRS publication 561 to ascertain the requirements for deducting a loss on your tax return as well as taking a charitable donation deduction.
• Do you have elderly parents or family with disabilities requiring in-home caregivers? A complete photographic inventory with supporting database and documentation will put caregivers and outside help on notice to prevent items going missing.
• Moving across town or across the country? Insure that you have a photographic record of your possessions, an inventory of the numbers of items, and receipts and appraisals to back-up their value. Put your mover on notice to insure delivery of everything, to insure care in delivery of your things, and to assist you in a claim for damage should this occur.

RUN Don’t Walk . . . Document what is often taken for granted!

Lizz — Sun, 15 Jun 2008 02:32:06 +0000

Can you answer from memory the Following?
1. Make, Model, & Serial # of your washer/dryer set?
2. Make, Model, & Serial # of your computer, printer, and scanner?
3. Make, Model, & Serial # of your camera, binoculars, or telescope?
4. List all the titles and the price you paid for music and movie CD’s and DVD’s?
5. List all the titles and the price you paid for your children’s books?

We take much of what we purchase with our hard-earned dollars for granted until these things are destroyed. Unfortunately, when faced with a catastrophic loss the memory of much of what we possessed is often erased by the trauma of the event. While an inventory cannot replace treasured items an inventory backed up with adequate insurance can insure that you are able to repurchase new treasures, replace life’s necessities, and rebuild your standard of living.

If you do not have an inventory, start conducting your inventory today! Need help? Contact me by email for assistance or check-out my book, How to Create a Photo Asset Inventory and Protect Your Investments from Catastrophic Loss.

To Be Or Not To Be PREPARED! It’s Time for an Insurance Policy Review.

Lizz — Sun, 15 Jun 2008 02:27:57 +0000

This year, in Nevada alone, we have experienced catastrophic flood, fire, and earthquake. Nationwide catastrophic events have displaced people, destroyed businesses, leveled whole towns and communities, and resulted in billions of dollars worth of damage.
When was the last time you had an annual insurance policy review? Is your insurance agent/broker looking out for you or is he/she merely collecting a fee on your annual premium? While the best agents and brokers periodically contact their clients for an insurance review, as a consumer, ultimately it is our responsibility to insure that we have the protections in place to rebuild our way of life in the event of a disaster, no matter the cause. Blaming the insurance company or its personnel, when we are not accountable for our own inaction won’t bring back our standard of living.
Additionally, our inaction can have a severe impact regionally and locally when we are underinsured or inadequately insured for events outside of the basic homeowner’s peril/casualty policy. One of the biggest problems inherent of a disaster, whether a single incident house/condo/townhouse/business fire or a community-wide disaster is the impact on the community when rebuilding and the repurchasing of services and goods does not occur. Additionally, the loss of businesses, homes, and jobs lessens the sales and property tax revenues collected to support the services we have all come to expect such as police and fire protection, street cleaning, and parks and recreation programs.
Be accountable; have a plan; develop a winning team to protect you in the event of a disaster. Remember, we’re all in this together!

Insurance Industry Needs an Image Overhaul to Combat Fraud

Lizz — Sun, 15 Jun 2008 00:01:50 +0000

A recent conversation with a former insurance industry executive left me speechless. He stated that 40% of all insurance claims involved fraud. I did some research and found that insurance fraud is indeed more widespread, and more costly than I or the many people I have since queried on this subject thought.
The increase in fraudulent claims seems to be a result of both a breakdown in societal morals and society’s perception that the insurance industry operates in an unprincipled fashion. I believe both rationales have some basis in truth. It would be preposterous to blame the insurance industry for the breakdown in societal morals; however, it would be sensible to suggest that they are culpable for perpetrating the trend. Instead of placing protections in place to curb insurance fraud, the industry has adopted the practice of passing on their losses to the consumer in every policy purchased.
The Insurance Information Institute reports that “fraudulent property/casualty insurance claims cost insurers about $30 billion annually.” Knowing that this is the case, why don’t insurance companies offer a premium reduction for policyholders who have an up-to-date inventory of their insured property? It would expedite the claims process, save the industry time and money, and over time take a considerable bite out of the fraud problem. Offering consumers an annual discount, in exchange for a policy review and updated inventory, would have an even greater benefit to the community as a whole, because in the event of a disaster rebuilding and the purchase of goods and services would occur at a faster rate. The industry offers discounts for fire/burglar alarms, deadbolts, and fire-activated sprinkler systems; why not a tool that would make both the consumer and the insurance company accountable?
Having said this, it seems to me that the bigger question is how does the industry combat a situation that costs them billions of dollars annually when they have an image problem that seemingly begets fraud? If the industry pursued a program of image overhaul, they could make reasonable profits, while passing on savings to the consumer. If consumers had a reasonable expectation that their claims would be paid in a timely fashion and for the full extent of the covered event, the amount of fraud would be vastly reduced. If the insurance industry adopted “inventory standards,” these standards would enable agents to educate consumers about their policy-specific needs for peril, flood, wind, and earthquake, as well as riders, floaters, and inland marine policies for items not generally covered by the types previously mentioned. This in and of itself would have an immediate and positive effect on industry image as consumers would see the benefit of knowing what their choices are before they find themselves hearing “claim denied” because they did not have the proper insurance.

Open For Business or the Victim of Disaster? Are You Prepared?

Lizz — Sat, 14 Jun 2008 21:59:43 +0000

The IBHS, Institute for Business & Home Safety, website states that, “At least one-fourth of all businesses that close because of a disaster never reopen.” Because natural disasters often strike with little warning, the small business owner is especially vulnerable to losses from which they cannot recover without the proper insurance and business plan in place. In fact, your business may be severely impacted or disrupted altogether by a disaster hundreds or thousands of miles away. If your suppliers are put out of business by an earthquake, flood, wildfire, tornado, or hurricane, you may find yourself in the same boat without a contingency plan in place.
While the loss of even one business to a disaster is tragic, consider the negative impact to the local and/or regional economy when many businesses are severely impacted or shut-down altogether by a disaster. If businesses do not have adequate insurance to recover and rebuild, historically the community as a whole suffers. Not only has the community lost service providers, manufacturers, and/or employers, but the community has lost sales tax and property tax revenue. When one or more businesses fail to re-open, the community is a loser whether you frequent that business or not. If the business owner and employees lose their source of income, they are at risk to not only lose their homes and cars, but resign from health and golf clubs, cease dining out, and discontinue using other local businesses such as dry cleaners and retail stores. Be accountable to yourself, your employees, your suppliers, and your community by having the proper insurance and protective measures in place to ensure your business’ continuity and viability.
Disasters are a fact of life and they happen with regularity in the United States as well as all over globe. In 2005, Hurricane Katrina brought New Orleans and other Gulf Coast towns to their knees and they are still struggling three years later to recover. Florida has yet to fully recover from the 2004 onslaught of four major hurricanes. Rebuilding is slow at Lake Tahoe where a devastating wildfire in 2007 burned 3100 acres and destroyed 325 homes and businesses. The Midwest has experienced earthquakes, tornadoes and flooding at unprecedented levels in 2008, damaging homes and businesses, and destroying whole towns’ altogether.
The Institute for Business & Home Safety has a valuable and empowering website that every business owner should visit: http://www.disastersafety.org. On the Home Page click on programs; then click on Open For Business® and download the Open For Business® Toolkit. The toolkit focuses on taking a business self-assessment and then preparing a property protection plan and business continuity plan, which evaluates protection objectives for your human resources, physical resources, and business operation. Page fourteen of the Open For Business® Toolkit recommends the following: “Keep your inventory list current and make a photographic or videotaped record of your inventory.” If you are unsure about how to proceed check-out my book, How to Create a Photo Asset Inventory and Protect Your Investments from Catastrophic Loss.

Comment on article by Kenneth J. St. Onge, June 3, 2008, “Court Turns Maryland Condo Insurance Upside Down”

Lizz — Sat, 14 Jun 2008 19:58:30 +0000

Do you own a condominium? If you answered yes, you need to know about and follow the outcome of an unexpected court decision by the Maryland Court of Appeals, (called the Supreme Court in other states) April 2008. The Court reversed 26 years of standard insurance industry practice when they ruled that The Gables Condo Council, in Rockville, MD and Bridgeport Condominiums in Laurel, MD were not required to pay for structural damage to individual units. Anderson v. The Gables, no.99, September Term 2007, Judge Bataglia (opinion). Prior to this ruling, the condominium association insurance policy was to pay for damage to the structure, returning it to its original state. In the past, the condominium unit owner’s insurance policy was intended to pay for upgrades to the original structure (i.e. new kitchen cabinets) and the owner’s personal property.
Impact of this ruling:
1. Most Maryland condominium owners are now underinsured.
2. Maryland condominium owners are overpaying for insurance in their association dues, for a policy which no longer benefits them individually.
3. There is the potential that other states will follow suit and base their rulings on the precedence set by this case law.
4. If the condominium owners cannot afford to have a unit repaired due to under-insurance, complexes likely will experience reduced property values when units remain empty, unrepaired, and/ or condemned. If the association bylaws contain a clause regarding failure to repair, owners could face legal action from the association.
5. This case law could lead to a much more serious problem, the perpetration of fraud; whereby unit owners wait to report an incident so that multiple units are affected.
My advice:
1. Obtain a copy of your condo association insurance policy.
2. Review the association policy and your individual policy with your insurance agent.
3. Make necessary adjustments and/or contingency arrangements.
4. This subject is addressed on pages 152-153 of my book, How to Create a Photo Asset Inventory and Protect Your Investments from Catastrophic LossTo read the article in entirety go to: http://www.insurancejournal.com/news/east/2008/06/03/90588.htm

Why Do I Need a Personal Asset Inventory?

Lizz — Mon, 07 Apr 2008 18:29:05 +0000

Simply put, Because Accurate Consummate Knowledge = Ultimate Protection.
Knowledge is power.
An individual’s memory is fleeting; visually archived memory is durable and retrievable.
Creating a plan for wealth protection and safeguarding your standard of living equal peace of mind. Learn what information your planning team requires to receive the best advice possible.
Alleviate stress and uncertainty through life-event planning and positioning.
The benefit of an asset inventory is analogous to the benefit you receive when you securely back-up your computer data, prior to a hard drive crash.
Prepared for future eventualities.
The planning assistance and professional advice you receive from your insurance, estate, tax, financial, and business planning team is only as good as the information you provide them. The more thorough your documentation the better the outcome of your comprehensive planning strategy.
Irrefutable proof in the event of theft, fire, earthquake, or flood. An accurate inventory will enable your Insurance professional to provide you with the level of coverage best suited to your individual or business needs.
An inventory will empower you to ask excellent questions; receive relevant information from your advisory team; and thereby, make informed decisions.

Have a question? E-mail me at info@photoassetarchival.com; I’ll respond. Have a story to tell or an experience to share? Blog back your story!