Personal Perspective

Loss prevention is typically associated with retailers and businesses that sell tangible goods. However, the problem also affects businesses of other types as well. In addition to the theft of physical inventory, loss can occur in the monetary sense. In fact, every business that has employees or allows anyone other than the owners to access computer systems and cash registers is susceptible to potential losses.

Types of Business Losses

In addition to the loss of physical merchandise, such as clothing and household goods, there are many other forms of losses. Restaurants, coffee shops and markets much be alert for the loss of food products. Other businesses which conduct financial transactions must be vigilant for the loss of money or the lack of reporting of sales. These business losses occur in three major ways including internal employee theft, external theft by customers or strangers and loss due to errors in accounting or sales processes.

Spotting the Signs of Loss

Spotting the signs of these various types of losses requires that owners look for specific indicators.

Internal employee theft can be identified by:

• Missing cash from registers
• Unexplainable refunds or voids in sales transactions
• Unusual or frequent discounts applied to sales transactions
• Individuals who hang around but only purchase from a certain employee

The signs of external theft are slightly easier to identify and include:

• Missing merchandise
• Empty hangers or empty packaging with no product inside
• Inventory audits that reveal a substantial numbers imbalance

Errors are a common cause of loss at all types of businesses and can be identified by the following:

• Employee’s assigning improper coding numbers to sales or transactions
• Not checking shipments to ensure that the proper merchandise is delivered
• Improper discounting of merchandise or sales transactions

Stopping Losses

Stopping losses requires various monitoring methods. One of the most effective is security cameras. Cameras stop both external and internal theft if mounted above sales registers or computer terminals. In addition, business owners must initial regular weekly audits of transactions. Ensure that there are no missing cash register tapes and that all computerized transactions are tracked via individual employee identification numbers.

Renters insurance covers your possessions if they’re damaged, lost or stolen. Although it’s a wise investment all renters should consider, it is optional. However, your landlord may require you to purchase renters insurance. Is this requirement legal?

First, understand that renters insurance might not be your landlord’s idea. His or her homeowners insurance company may require all tenants to carry renters insurance. This way, your landlord’s insurance company isn’t responsible to replace all the tenants’ belongings.

Second, your landlord’s insurance policy only covers the building and ground. It does not cover tenant belongings. If there’s a fire, you lose your belongings and you don’t have an insurance policy, you won’t receive money to replace your possessions.

Third, landlords may require tenants to do anything as long as it’s legal and not discriminatory. You may choose to comply with the requirements and sign the lease or move to another rental unit.

If the cost is one reason why you may not want to buy a policy, consider the costs of not having coverage. Can you afford to replace your electronics, wardrobe, jewelry and collectibles? What happens if someone trips while visiting you, falls down the stairs and breaks his or her arm? Can you afford the medical bills? Renters insurance covers these expenses and protects you financially. It also gives you peace of mind because you know that you’re covered.

Plus, renters insurance is cheaper than you think. A policy can provide thousands of dollars in coverage for less than $20 a month. Customizing your coverage can provide even bigger savings when you increase your deducible, choose actual value rather than replacement value and bundle your renters and auto insurance policies.

When your landlord requires you to purchase renters insurance, understand that it is legal. It’s also beneficial for you. You never know when another tenant will buzz in a burglar or forget to turn the stove burner off. So discuss your renters insurance options with your agent today as you purchase required coverage that also gives you peace of mind.

You already know that your home insurance policy covers necessary repairs after storms and replaces stolen valuables. Did you know it also covers seven unique and strange things?

1. Spoiled Food

When the power goes out and ruins the food in your refrigerator or freezer, many home insurance policies reimburse you for up to $500.

2. Reward Money 

After a robbery or burglary, most homeowners are eager to find the person who’s responsible. If you do that, the person is convicted and you receive a reward, up to $1,500 of the reward money could be covered by your home insurance policy.

3. Volcano Eruptions

Your home insurance policy probably includes “open perils” coverage, which includes volcanic action. You’re usually only covered for damage caused by volcanic lava or ash, but review your policy for specific details. Purchase a separate earthquake policy if you need protection from tremors or other volcanic eruption damage.

4. Falling Objects

Satellite debris, meteors and other space junk can fall from the sky and damage your home, property and belongings. Your “open peril” coverage pays to repair or replace your possessions because of this damage.

5. Tombstone Damage

Tombstones and grave markers pay tribute to your loved ones, and most home insurance policies cover cracks, graffiti and other headstone damage.

6. Clean Up Costs

Cleaning up an unattended death, suicide or murder takes a specialist. If one of these events occurs in your home, your insurance policy might cover the cost.

7. Liability Away From Home

Even when you’re not home, you can be covered by the liability portion of your home insurance. For example, if you collide with another cyclist at the park, your homeowners insurance could cover his or her injuries.

Home insurance policies are indeed diverse, so be sure you invest in a policy today. Your insurance agent can explain more about how home insurance works, what it covers and how much coverage you need. Now’s also a great time to update your policy to ensure it’s adequate for your needs. It pays to be covered!

Floods are the number one natural disaster in the U.S., and you can be a victim even if you don’t live in a flood zone. Are you prepared? Your standard homeowners insurance probably doesn’t cover flood damage, so consider four reasons why you need flood insurance.

1. You Live in a High-Risk Area

You probably already know if you live in an area that’s at risk for flooding, but if not, check out the flood risk map drawn by the National Flood Insurance Program (NFIP). It helps you determine whether your home sits in an area that frequently floods.

2. Your Mortgage Lender Requires Flood Insurance

Mortgage lenders that are federally regulated or insured typically require borrowers to purchase flood insurance for homes located in high-risk areas. However, your mortgage lender may also require you to purchase flood insurance if your house is located in a moderate-to-low risk area.

3. You Can’t Afford Flood Damage Repairs

One foot of water in your home can cause $27,150 of damage per 1,000-square-foot, according to the NFIP. Average flood related claims can total $38,000. Do you have that amount saved? If not, purchase flood insurance for financial protection and peace of mind.

4. You Want to Cover Your Home and Belongings

The average flood insurance policy costs $650 a year, and it typically covers three basic parts of your home and property.

*Building coverage protects your home’s physical structure
*Contents coverage protects your belongings valued between $8,000 and $100,000
*Replacement cost coverage replaces your home if it’s a single-family residence and is insured with a policy that covers at least 80 percent of the total replacement cost.

After you decide to buy flood insurance, check available policies through the NFIP. Be sure to ask your insurance agent about available coverage, too, because private policies are often more affordable than those offered by the NFIP. Buying a flood insurance policy is a small investment that yields big rewards if a flood strikes. Talk to your agent today as you protect your investment. It’s a wise decision.

Every vehicle on the road needs insurance coverage. You might be able to drop insurance, though, on a car you don’t drive. Learn more as you ensure you have the right insurance for all of your vehicles.

1. Someone else will use your car while you’re out of the country for an extended time.

Even though you’re working or traveling outside the U.S. for a year or longer, you can still remain a registered vehicle owner and allow someone else to use your car. Contact your insurance agent to add a driver to your policy or add your car to the driver’s policy.

2. You keep a car for someone even though you’re not a licensed driver.

There are several reasons why you may not drive. 

*You never got your license
*You’re disabled
*You gave up driving because of old age
*You lost your license due to reckless driving or a DUI
In these cases, you can still have a vehicle in your name but be excluded as a driver on the policy. Tell your insurance agent why you aren’t licensed and provide details on the licensed driver. In most cases, the licensed driver must be someone in your household.

3. The vehicle will not be driven for months at a time.

You might want to buy a classic car and store it in the garage until you can fix it up or maybe you can’t pass up a deal on a vehicle for your 14-year-old son. These circumstances can be grounds for owning a car that’s not insured. Discuss your options with your insurance agent, though. All vehicles with liens must typically be insured. And while you may be able to drop insurance on a vehicle that’s non-operable and not parked on public land, some states require all vehicles to carry liability coverage.

When you don’t drive a vehicle you own, you might be able to drop auto insurance coverage. Since auto insurance requirements vary by state, discuss your needs with your agent, and make sure you have adequate coverage for all your unique circumstances.

Renters insurance covers your personal belongings in case they’re stolen, damaged or lost. There are exclusions to your renters insurance coverage, though. While you don’t want the exclusions to keep you from buying a policy, do know the facts as you ensure you have the coverage you need.

Excluded Items

Nearly all the items you own are covered by your insurance policy if they’re lost, damaged or stolen. However, valuables like jewelry, antiques and furs may require a rider or endorsement. Likewise, any items you use for business purposes may not be covered by your renters insurance policy because it’s typically reserved for personal not commercial property.

Excluded Events

Certain events are also covered, including fire, smoke, lightning, hail, some water damage, certain types of wind storms, explosions, riots, broken glass, falling objects and more.

You’ll need to read the fine print of your policy to find exactly what’s included. Typically, your personal property is not covered if there’s an:

Earthquake
Hurricane
Flood
Power failure
Neglect
Intentional act
War
Nuclear hazard

Most insurance companies do offer riders or endorsements that can cover your property if an earthquake, hurricane or flood strikes. Talk to your agent to learn more about your options.

Limits on Renters Insurance Policies

In addition to considering the exclusions to your renters insurance policy, consider limitations, too.

1. Your property is only covered for the amount of the policy even if they’re worth more.
2. Remember that you’re responsible to pay the deductible.
3. If you chose Actual Cash Value replacement, you’ll receive the equivalent of the item’s current value minus depreciation. Replacement Coverage allows you to replace the item at its current cost no matter how old or in what condition your property was at the time of damage, theft or loss.

When choosing renters insurance, ask about exclusions. Use that information to make sure you’re adequately insured for all the challenges you face.

You have a right to privacy in your home. It’s hard, though, when you’re renting because your landlord can legally have access to your home at certain times. By understanding the tenant privacy or access laws, you can know whether or not your landlord is invading your privacy.

When Can Landlords Enter a Rental Property?

Most states allow landlords to enter rental property under certain circumstances. Your lease or rental agreement should include these details under the “landlord’s right to access” and “tenant privacy” sections. Typically, landlords may access their rental units to:

*Make repairs
*Inspect the property for maintenance problems or safety issues, including if there’s a fire or burglary in progress
*Show the rental unit to prospective tenants
*Show the rental unit to potential property buyers

When the reason is legitimate, landlords must provide tenants with a 24 to 48 hour notice before they enter the rental unit and enter during reasonable hours as outlined in your state’s laws.

What Actions are Considered Invasion of Privacy?

Many circumstances can be classified as invasion of privacy. They include:

1. Letting anyone other than the police or municipal inspectors enter the rental unit without your permission.
2. Giving your financial, work, social, personal or other information to strangers unless it’s a legitimate right-to-know case.
3. Calling or visiting your workplace when there is no emergency.
4. Restricting guests without cause or in violation of lease or rental agreement stipulations.
5. Spying on you.
6. Visiting you without cause unless you’re performing an illegal activity on the property.
7. Changing your locks, locking you out of the property or turning off your utilities because you did something the landlord didn’t like or disagreed with.
8. Sexual harassment.

If you’re the victim of privacy invasion, write a letter to your landlord and ask him or her to stop all illegal entry. Make sure your renters insurance is updated, too, since it ensures your belongings are protected from damage caused by illegal entry. For additional assistance, refer to your state’s rental laws.

Many factors, including age, determine how much a person’s auto insurance premiums cost. If you’re a senior adult, understand the factors that contribute to your auto insurance rates.

 
Accident Probability

Whether you’re 26 or 86, your safe driving record can reduce your auto insurance raters. Unfortunately, senior adults statistically have a high accident rate. That’s why many insurance companies raise rates for all drivers over the age of 75.

Insurance Company Loyalty

Being loyal to the same insurance company can result in a healthy discount on your auto insurance premiums.

Claims Filed

Regardless of age, drivers who have filed numerous auto insurance claims may pay more for auto insurance. Likewise, you may pay lower premiums if you have few or no recent claims.

Physical Capabilities

As a senior driver, you may be in great health. However, many seniors often experience vision or hearing impairments, reduced reaction time, decreased attention to detail and slower leg and arm movements. Even if you pass an annual driving test and vision exam, these health probabilities can affect driving performance and increase insurance rates.

Driving Record

Speeding tickets and other traffic violations can affect auto insurance rates, so keep your driving record clean to reduce your rates.

Car Type

Drive a vehicle with a high safety rating, and pay less for auto insurance.

Full Coverage

Unless you owe money on your vehicle or it’s a new model, consider dropping collision and comprehensive coverage. This move reduces your premium.

Low Mileage

When you don’t drive your vehicle very often or very far, you can earn a low mileage premium discount.

Multiple Policies

Insure your home and vehicle with the same company to earn valuable discounts.

Defensive Driving Courses

Take a special defensive driving course designed for senior adults and possibly receive a premium discount.

Your insurance company might automatically assign you a higher insurance rate based on your age. Now’s a great time to shop around for a better rate. Ask your insurance agent about available discounts and other ways to reduce your premiums as you save money and insure your automobile.

How Mold Affects Your Home Insurance

Does your house have a mold problem? Mold can affect your health, and it affects your home insurance policy and rates, too. Learn more as you maintain your home insurance coverage at an affordable price.

Which Molds are Bad?

On any given day, you could find one or more of five common molds in your home. They are Stachybotrys, Cladosporium, Penicilium, Fusarium and Aspergillus. While Aspergillums is the least toxic, Stachybotrys is the most toxic. It’s been linked to hay fever, pulmonary edema, liver damage, brain damage and death, especially in people with compromised immune systems, infants and the elderly.

How do I Know if my House Has Mold?

Because it’s potentially deadly, you need to know if your house has mold. Do a visual inspection and look for black, gray, brown or blue anywhere there’s moisture or wetness, including in your bathroom, basement or laundry room. Remember, though, that you can’t always see mold. It may be hiding behind drywall or under flooring. Dry rot and musty odors are two signs of mold. Health problems like chronic nasal stuffiness, cough, wheezing, sore throat, upper respiratory infections or skin and eye irritations are also signs of mold. Investigate immediately if you think your house is affected because early treatment could help you get a handle on the problem.

Can I Get Home Insurance if my House Has Mold?

Most home insurance policies cover “sudden and accidental” damage. So if your bathroom pipes burst while you’re out of town and cause moldy floors, you could file a claim and get the mold removed. However, if debris accumulation on your roof causes mold growth, you probably cannot file a home insurance claim to repair your roof. That’s because this type of mold growth is considered by most insurance companies to be a home maintenance issue and thus not covered by your policy. Because home insurance policies differ by company and by state, talk to your agent about mold coverage. Then be on the lookout from mold growth. By addressing it right away, you have a better chance of removing it before it causes damage and affects your home insurance.

With ACV, you receive payment for what the item is worth if it were sold today. You will not receive a check for the amount you paid for the item, and you may not receive enough money to buy a new one of comparable style, size or quality.

To determine ACV, the insurance company first calculates the object’s depreciation. This value is based on the item’s age and its wear and tear.

Select ACV when you want to pay less for your home insurance premiums. Remember, though, that you’ll also receive a lower reimbursement check after you file a claim.

If you want to buy exact replicas or comparable items, purchase replacement cost coverage. It reimburses you for the amount of money you would pay to replace your items today, even if those items depreciated significantly from wear and tear.

The total payment you receive will not exceed your policy’s total value, so don’t expect to replace your $1 million home if your policy only provides $500,000 worth of coverage.

While you pay more for replacement cost coverage, you have peace of mind knowing that you can replace your electronics, jewelry and other items if you have to.