Photo Asset Archival.com

Powerful Solutions For:

  • Insurance Documentation
  • Estate Planning
  • Financial Planning
  • Business Planning
  • Sales & Marketing
Learn More >>

FAQs

National statistics indicate that less than 7% of stolen property without identifying marks is returned to its rightful owner. (i.e., etching device or UV light markers)

Trusted Choice® at: http://www.trustedchoice.com/consumer/index.aspx reports that nearly 40% of homeowners who make improvements to their homes do not update their homeowner’s policies to reflect the changes. The difference between pre-improvement value and post-improvement replacement value is likely to be very significant.

Do you need flood insurance? Have you considered that last year (2007), 46% of the claims nationwide paid by the National Flood Insurance Program, were in low-risk communities? http://www.fema.gov/business/nfip

With large scale development changing run-off and flooding patterns, do you have adequate protection in the event of a flood? Nationwide Insurance literature states that there is a 26% chance of experiencing a flood during the life of a 30-year mortgage compared to a 4% chance of fire. The National Flood Insurance Program website has a section which allows you to calculate the cost of protection for your particular flood zone designation.

Appraisals are important to ascertain the fair market value of valuable and unique tangible property and fine arts for insurance planning, estate plans, and tax planning. IRS Publication 561 (April 2007) outlines the fair market valuation requirements for various kinds of property. Read the IRS Publication 561 carefully and consult your tax advisor, as the requirements vary for different types of tangible property. Be aware that there is a hefty penalty if the IRS determines the valuation was overstated on your Tax Return. The imposed penalties range from 20-40% of your underpayment.

After you have completed or updated your inventory, get in the habit of making notations on a calendar or in your day planner to share this information with your insurance agent when your homeowners or business premium comes due, or at tax time when you meet with your accountant to prepare your tax return. Additionally, do not forget to notify your insurance provider about expensive acquisitions, home improvements, and major renovations. According to the InsWeb website:

40% of homeowners who make improvements to their homes do not update their homeowner’s policies to reflect these changes.

If your policy pays actual cash value, you need to determine the present value of your possessions.

First, you need to obtain an estimate of the cost of replacement; what it would cost you today to replace a particular asset.

Second, you will need to subtract from this figure the estimated depreciation, including wear and tear and obsolescence. Then for estimating purposes only, you might use 10% per year. For example: your Italian leather sectional sofa cost $5,100 and it is four years old. Today that same sectional sofa would cost $7,500. After subtracting 40% depreciation (10% per year for four years) from the replacement cost ($7,500), the current actual cash value for your sectional sofa would be $4,500.

ACTUAL CASH VALUE – For insurance purposes, a type of insurance policy that reimburses you for the value of your property today, minus wear and tear, age, and depreciation. E.g., your living room suite of furniture cost $5,500, and it is five years old. Today that same suite would cost $6,200. After subtracting 50% depreciation (10% per year for five years (estimated for comparison purposes)- $2,750) from the replacement cost ($6,200), the actual cash value for your living room suite would be $3,450, less your deductible.

In Nevada in 2005, over 53% of all reported structure fires were residential, less than 1/2 of all structures with reported fires had working smoke detectors. Studies by the Center for Disease Control prove that $1 spent on smoke alarms can save $69 in fire-related costs. The prevention of suffering and loss is invaluable.

This was excerpted from the August 7, 2006 Nevada Department of Public Safety Public Service Announcement. Additional information on smoke alarms and Nevada fire-safety programs may be obtained from the Nevada DPS, Fire Marshal Division (775-684-7504 or mpeltier@dps.state.nv.us) and the Fire Prevention Association of Nevada:

http://www.fpanevada.org

Life-saving information is also available through the U.S. Fire Administration:
Here is an interesting statistic from http://www.usdoj.gov/ :
A survey of convicted burglars in 1999, conducted by the U.S. Department of Justice revealed the following statistic: 9 out of 10 convicted burglars agreed that they would avoid a house protected by an alarm system.

Stop Pre-approved Credit Offers
Call Opt-Out at 888-567-8688 to stop pre-approved credit offers.

Wise Internet Use
Keep your firewall, virus protection, and spyware protection ON at all times, and update regularly. Foil the phishers by refusing to take the bait; if you do not know the sender, don’t open an email; delete it. If you receive an email from a bank or credit card company, go to their official website or call. Make sure the email originated with them and not a phisher.