Posted by Milissa Malloy on Wed, Jan 25, 2012 @ 08:03 AM
After 10+ years of helping people document and appraise their valuable articles and collections, we have seen many insurance schedules and realized there are several problems and frustrations that derive from these important lists such as:
1.They rarely get updated-Typical scenario: Client A provides a general list of items they want to insure at the policy inception. The values from these items come from either purchase prices or prior appraisals that may already be a few years old. Fast forward 8 years and the list is still the same. The values have not been updated and they have neglected to add the 2-4 new items they purchased every year meaning there could be anywhere between 16-24 valuable items that are not even insured.
2. The format stinks-Sorry to be so blunt, but it is true. The information listed is typically inconsistent or lacking. For example, I cannot count the number of times I have seen "Oil Painting, $7,500". Well when a fire occurs, how are you going to know which oil painting you lost? The format also does not make it easy on the client or the insurance adviser to easily match items when new values are obtained through updated appraisals.
3. No Portability-It is very common to change your insurance policy over the years, and therefore your insurance carrier. When this occurs, essentially the information on the insurance schedule can get "tossed over the fence" since the formatting does not allow for easy transfer. This can be dangerous and risky if some of that valuable information is lost.
We believe there is a new way to think about Insurance Schedule. Imagine if:
*schedules were updated automatically to reflect market changes and reduce gaps in coverage
*schedules were always up-to-date in real-time regardless if the client changes carriers
*clients could manage and view their schedule in an intelligent format that wasn’t hard to read or inaccurate.
*agents and advisors like you did not have to spend so much time reconciling schedules and appraisals
*clients knew what items needed professional appraisals without being overwhelmed
We want to hear from you! What experiences have you had with insurance schedules? Do you think there is room for improvement? Would you welcome a new way to do things? Please chime in by commenting below.
Posted by Milissa Malloy on Fri, Dec 02, 2011 @ 10:27 AM
by Michael Cohn, Michael Cohn Consultants
Appraisers & Advisors, Contemporary Art & Asian Antiquities
Three Red Flags -- and How to Avoid Them -- When the IRS Audits a Donation Appraisal
Red Flag #1: The appraisal lacks information to identify the object.
The IRS expects an appraisal to have a complete description, including materials, signatures, condition, creation date, authenticity, where/when acquired. This may seem obvious, but a recent survey found most appraisals lack enough information. In such cases, the IRS will ask the donor for the missing elements. If still not satisfied, they can lower the deduction or disallow it altogether.
Red Flag #2: The appraised value looks pulled out of a hat.
There’s accepted methodology for a donation appraisal: the appraiser analyzes recent sales of similar objects, usually from auctions, and relates this to the donated object. The IRS expects to see this analysis. And the IRS's Office of Art Appraisal Services will check whether that analysis supports the claimed deduction.
Red Flag #3: The appraiser wasn't qualified to do the appraisal.
An unqualified appraiser can mean a disqualified deduction. So, it makes sense to use appraisers the IRS view as qualified. A donor should be in good shape hiring an appraiser who belongs to an organization that certifies professional experience and an expertise, complies with USPAP standards, participates in on-going education and regularly appraises similar objects.
Michael Cohn Fine Art Consultants has extensive experience writing donation appraisals that satisfy IRS requirements. Still, an appraiser is not a replacement for a CPA or tax attorney. With the IRS, it takes a village.
Michael is a Certified Member, American Appraisers Association (AAA) / USPAP-compliant (renewed 2011) with over 35 years experience. Faculty Member, Appraisal Studies, NYU School of Professional Studies & Continuing Education. If you have any questions about donation appraisals or his services Michael can be reached at: 212-473-2347. You can also visit his website: www.mc-artconsultants.com.
Posted by Gerald Escobar on Fri, Nov 11, 2011 @ 09:15 AM
Do you believe in Dragons? I don’t but had the opportunity to see one or at least the closest thing to a Dragon I will ever see. A few years back the opportunity presented itself to help a
collector with their collection and he was an avid collector of fossils. Some of these prehistoric fossils are pretty awesome especially with how well the details are preserved in time. In particular he had this one skull that was pretty big and it looked just like a Dragon. I am telling you it was something that would be in a kid’s movie and the accuracy of the fossil and our perception of Dragons was identical. Not sure what type of creature it really was but I do know that it would have been a hit for Halloween for my 6 year old.
The collector was adamant that it was worth $500,000 but he did say he got a good deal through his source. Now what someone thinks something is worth and what they paid can be different numbers however when valuing items for insurance or fair market value, there is a process to substantiate those numbers. The simple request of supporting documentation for the purchase of this 6 figure object was unable to be fulfilled because there were no records. (Sure, some objects that people collect don’t have a paper trail, like buying rugs when you are traveling through Turkey or a friend of a friend of a friend hooked you up with the last painting from a famous artist through an estate sale… more on this later.) So we have Puff the Magic Dragon that needs to be appraised and now we are relying on available data, expertise from individuals and any comparables in the marketplace.
Example #2: You bought your wonderful wife that 10 carat diamond. You spent around $750,000 or more depending on the brilliance and WHERE you bought it. Now the insurance company is asking for updated appraisals and you cannot find the receipt or GIA certificate. You do remember that you bought it from the highly reputable jeweler in Los Angeles and you think they may have some certificates or documents but you would need to find out. Now $750,000 may or may not be a lot of money and keeping records about those purchases can be important to you or not, however your record keeping can make life a lot easier.
Here is the big problem: the majority (over 90%) of client’s record keeping is lacking, disorganized or simply lost. When we talk about record keeping I am referring to their files of receipts, invoices, provenance, or any other documentation that supports their purchases. In plain terms they cannot easily access these documents and rely on traditional record keeping practices or worse rely on others to keep copies.
So why does this matter? If we specifically address appraising, the ability to support your collection and valuable articles with documentation will help the valuation expert make the research process efficient and not make the client pay for extra time to track down and prevent delays in getting values which translates into more costs for the appraisal. The benefits to the client when supplying documentation are:
*accurate valuations that may help substantiate the purchase and investment
*enhance the support in the event of a claim and make the process seamless
*efficient appraisal process
Typically, clients have banker’s boxes or file folders of old receipts. If they are active in their collection management, these files are well organized and even digitally scanned. At Asset Archives we often see clients who cannot easily access these documents or it is a painful process to do so which leads to their next assumption that the decorator, gallery, jeweler or their advisor can access the document(s). Bad assumption.
So how can this be fixed? Ideally, in the digital age, store document files (emails and receipts electronically) or scan hard copies and keep them safe on your computer. Keep this information readily accessible so you can share it with your advisors and you can access it even if you are not in your home (imagine if the house burned down? The PC is gone. Did you back it up and keep it off site?) If you are completing an inventory of your home’s contents or getting appraisals, ask if the firm you are using can digitize any pertinent and relevant documentation so it can be added to the inventory or appraisal. Or, use a solution online that can make the information available at your fingertips through secure web access. Asset Archives is happy to provide more recommendations if you would like to get professional advice. Please feel free to call us at (888) 784-6630.
At the end of the day if you are buying Dragons or Diamonds, keep your documentation. It will serve you well and make life easier. Thing happen to the places and people you bought things from like they go out of business, move, lose files, change ownership and more so make sure you are on top of your documentation.
Posted by Milissa Malloy on Fri, Oct 28, 2011 @ 09:38 AM
In this day in age, who doesn’t want to make their life easier? We all use technology in so many ways on an everyday basis, saving us minutes or hours on tasks. So if this applies to taking an inventory of your home, why is it that many still choose a legal pad and pen over an online software application that can manage your contents and collections? Well if you are one of those people, put the pen down! We have several reasons why it makes sense to embrace the use of technology for your inventory and appraisal needs, saving you time and frustration.
Creating an inventory is quicker: Utilizing a home inventory software application makes the process quicker and therefore easier by having the ability to upload numerous images, quickly attach invoices containing valuable purchase information and easily type in notes about your prized possessions.
Sharing information is easier: If your Dining Room were to get flooded tomorrow and your insurance agent were to ask you for a list of what was in the room what would be easier:
a. Searching for your hard copy images, video and receipts and then bringing them to your insurance agent. Woops, what if your invoices and pictures were in the sideboard drawer that got filled with water?!!?
b. Going to any computer, accessing your inventory, generating a report of the Dining room contents with the click of a button and emailing it to your insurance agent.
Always backed up and secure: With a web based inventory program you can access your information from anywhere and have peace of mind knowing it is always secure. And you don’t have to worry about managing multiple copies in multiple places.
You Can Update & Manage: Having your information in an electronic format allows you with the option to easily update items, add items, generate reports or filter only what you want to see. Let’s say you get rid of a piece of furniture, no need to break out the white-out, just hit delete.
Avoid the hassle and clutter of paperwork: Not only does paperwork take up space, but it can be hard to find what you need when you are dealing with the trauma of a loss and things may be located in different places in the house. Go paperless!
Stay tuned in the coming weeks for the launch of our new home inventory software application iDocument.
Posted by Milissa Malloy on Fri, Oct 14, 2011 @ 09:00 AM
1. I have homeowner's insurance so I don't need an inventory of my things.
What many people do not understand is that even if you have insurance, in the event of a loss you will need to justify what you had. Most importantly, how do you know that you have the right amount of insurance? Having an inventory forces you to evaluate what you have and gauge if your insurance coverage is accurate.
2. If I have photos of my valuable art and jewelry I will get reimbursed for the full amount of the items.
Typically with most insurance policies there are certain limits as to what the insurance company will pay for certain valuable articles such as jewelry, silver and artwork. For example, a box of silverware is stolen containing $20,000 worth of silver however you policy has a limit of $10,000 then you are out of luck. Having a record of these items is a great start but insuring them separately, or scheduling these items allows you to insure them for a specific value as well as several other benefits. We recommend consulting with your insurance adviser to provide guidance. To find out more about insuring valuable articles read our post titled "Insuring Valuable Articles: Your Questions Answered"
3. If my house were to be destroyed my insurance company will write me a check for $500,000, the amount of personal property coverage I have.
Not necessarily. You will need to have justification for what made up that $500,000 and trying to recreate this from memory during a highly traumatic time can be challenging to say the least.
4. Once I have scheduled or secured a floater for my valuables I do not need to be concerned with the values.
There are 2 big issues that we typically see when speaking with clients about their scheduled valuables:
1. They insure items based on what they paid for them 7, 8, 9 years ago. What if the value has changed? If you are paying for the insurance you might as well get the most out of it by making sure you are reimbursed based on the current value.
2. People forget to add things. Your husband buys you a new tennis bracelet for Valentine's day or you buy a new painting during your travels but you forget to insure it. We recommend reviewing your insurance schedule annually to confirm that it is accurate. Values should be updated every 2-5 years depending on the type of item but speak with a certified appraiser who can help guide you in the right direction.
5. I don't have that much and if something were to happen to my things I could remember what was there.
Many people forget that in addition to the main rooms in the house (Living Room, Dining Room) there are many other places where valuable possessions may be. For example, the closet. Think of the number of pairs of shoes, purses, suits, shirts, etc. What about in the garage? Golf clubs, bicycles and other sporting goods. It isn't until you try to go room by room in your head that you realize that you possess a fair amount and there are many things you may not remember.
In summary, the key is to have a record of what you own before a loss and be sure to consult with your insurance adviser about limits, valuable articles and scheduling items. If you are interested in having a professional inventory completed contact us a (888) 784-6630. To find out how to take your own inventory, CLICK HERE.
Posted by Milissa Malloy on Fri, Sep 30, 2011 @ 08:23 AM
by Jennifer Harman, Owner of Harmanize Consulting
In part one, we discussed questions that have to be asked to deal with an estate. Dividing the contents of the house can be a challenging task, especially assuming the family members live in various cities. It is often surprising what things are special or useful to various family members and decisions can become tense. And sometimes there are valuable pieces but they don’t suit everyone’s taste – if you just don’t like it, are you therefore exempt from a share in its value? Without a plan, dividing an estate can quickly become a headache.
There are two ways to go about the process:
1) Organize everything into categories and spread them out around the house. Get everyone together and have each person put a color-coded sticker or nametag on anyhing they are somewhat interested in having. When finished, discuss items with more than one sticker on them. It will likely be emotional and draining, but you will all be there to make decisions and it will be done. Set a deadline when items have to be removed.
2) Use a photo-sharing website, such as www.flickr.com or a photo album on Facebook, to create a digital discussion forum (you can set privacy controls on the photos). Post a picture of each item or group of items (e.g. glassware) and have each family member comment on each and every photo whether they are interested or not. You will probably need to set deadlines for commenting on photos and for collecting the items. One advantage of this method is there is a written record to refer back to later.
If there are valuable items, they should be appraised beforehand by a reputable company such as Asset Archives. The value of those items can then be deducted from the monetary disbursal to keep everything fair.
When all the decisions are made, there will be some things left unclaimed. Donate these items to charity, have a yard sale, sell on craigslist or ebay, and/or use an auction house to collect and sell the lot. It’s a big job to divide the possessions of a lifetime, but it doesn’t have to take over the rest of yours!
If you missed Organizing an Estate: Step 1, CLICK HERE.
About Harmanize Consulting:
Based in Williamsburg VA, Harmanize Consulting provides professional organizing & life management services. To find out more about their services contact Jennifer at 757-784-3807 or info@harmanizeconsulting.com.
Posted by Gerald Escobar on Fri, Sep 23, 2011 @ 09:09 AM
This post is longer than usual but well worth the lesson shared. The Paris and Sex part don’t come until halfway down but don’t skip…..you will understand if you read from the beginning.
We recently helped a client in California who was updating their home owners insurance. His art and jewelry collections were well documented, appraised and properly scheduled on his policy however he lived in an upscale apartment building and did not know how much all of his other stuff (a.k.a. contents, personal property) was worth. At 75 years of age, he and his wife had amassed a variety of things in their home and even spent above average for everyday furnishings such as a breakfast table, office chairs, rugs, fine china, lighting and even personal accessories. So he ultimately wanted to know, how much is all this stuff worth so I can substantiate it to my insurance company in the event of a loss. He had already experienced a claim and while he seemed pleased with the outcome he became more aware of the burden of proof on him and the potential for contradicting agendas from both parties (home owner and insurance company) when a loss occurs. So here he is being proactive getting his ducks in a row.
There are several ways to help clients determine what their general contents are worth ranging from labor intensive detailed work which most people don’t want to pay for when evaluating “everyday stuff” or you can use new innovative services and technology such as the Home Contents Valuation Application that ACE Private Risk Services uses for their clients which is unintrusive, complimentary and based on science. By the way, we (Asset Archives) developed the proprietary technology behind the Home Contents Valuation application. So, we do an inventory and contents valuation for this client and what happens next is where you and those of you who advise affluent home owners need to pay close attention.
The results indicated that the client had approximately $1,250,000 - $1,400,000 worth of contents. Upon review, he was concerned that the number we came up with might be low. So we had an engaging conversation and the discovery was surprising for him and a great confirmation on how you can better serve yourself by knowing what you have and not guessing. When a contents valuation is done with our new technology, the purpose is to estimate what total general contents are without the time, money and overwhelm involved with a traditional appraisal. (Note: This does not replace a formal appraisal but rather determine where to focus on appraising if necessary and give you a starting point of value without guessing) The alternative is to allow your insurance company to place a % on the dwelling for contents which can be totally off base from reality. (You could be over or under insured). So like any appraisal and valuation service, if the evaluator is not privy to all available information such as objects hidden in closets for privacy purposes, then it may not give you the whole picture.
So what did we discover? Hermes Birkin Bags, Manolo Blahnik shoes, and Wine Bottles (>$1,000/bottle) to name a few.
Here is where Paris and Sex in the City relate. In 1981, Hermès chief executive Jean-Louis Dumas was seated next to Jane Birkin on a flight from Paris to London. She had just placed her straw bag in the overhead compartment of her seat, but the contents fell to the ground, leaving her to scramble to replace the contents. Birkin explained to Dumas that it had been difficult to find a leather weekend bag she liked. In 1984, he created a black supple leather bag for her, based on an 1892 design. She used the bag for herself then later changed her mind. Nevertheless, the bag has since become an icon. (Source Wikipedia) These bags range from $5,000-$150,000. Manolo Blahnik is a Spanish footwear designer. In the 1970s, when chunky platform shoes and boots were the mainstream footwear styling of the day, Manolo Blahnik turned back his attention to the stiletto heel, which has remained the brand's mainstay to this day. Manolo Blahnik shoes have rapidly become a symbol of pure classical style for the 21st century. (Source Wikipedia) The TV show: Sex in the City made the shoes wildly popular. Sarah Jessica Parker’s character is a collector of the shoe and sports them in the majority of the episodes. (My wife reminds me that she is making space in her closet for a pair of Blahniks) These shoes range from $550- $15,000 a pair. These are just two examples of what we discovered in the conversation with our client once he used the Contents Valuation application.
The result: A productive conversation with a client who is now motivated since he sees with his own eyes the disparity in own calculations whether 50% of his home is even right. Now since he was in an apartment, the arbitrary % was not applicable but here is the real shocker. His contents coverage was $200,000. When we accounted for the Birkin bags, other luxury accessories and wine, it increased the total contents value we originally estimated by $550,000. So he should plan for $1,700,000 - $2,000,000 in contents. That’s a pretty big difference.
How does this story end? Client is raising his general contents coverage and getting some blanket coverage to address any gaps on specific items or categories for effective coverage, on top of the art and jewelry he already scheduled.
Here are questions you need to ask:
*do I have a good grasp of what my general contents are worth?
*how comfortable am I with the value my insurance company has determined my contents are worth?
*have I considered how much I may have in areas such as luxury accessories (handbags, clothes, shoes)?
* how does my insurance company deal with certain collectibles like wine that are typically consumed but still worth a lot of money?
*how could I quickly determine an estimate for what my total contents are worth without going through a process that feels like I am sticking toothpicks in my eyes?
Client happy, check.
Agent happy, check.
Are you sure you know what you have? You better check.
To learn more how you can get a Contents Valuation Assessment feel free to call me. 404-229-3996, that’s my personal mobile phone so that I make sure I am available as best I can.
We’ll do another post soon about how much a Master Bedroom can eat up in the total contents value of your home.
The Most Important Lesson learned from this client experience? No matter how wealthy you are, you just want to be treated fairly by your insurance company when shit happens. (Yes, excuse the language, but that is the bottom line) Birkin bags, shoes or wine don’t mean anything when you have a significant loss but how you get treated by the company you are paying to be there when you do have a loss is what is most important.
Happy Friday,
Gerald
Posted by Milissa Malloy on Fri, Sep 16, 2011 @ 09:00 AM
by Martine White, Senior Appraiser, Bernard's Appraisal Associates
Bringing comfort and heat into the home, the fireplace was as integral in the 18th century American home as the television is today. Deriving from European ancestry, the hearth was the center of family life providing food and warmth, along with the comfort of social interaction. Whereas early fireplaces were constructed of fieldstone, eventually these coal chambers evolved into brick edifices culminating in towering chimneys that would any chimney sweep would find daunting.
Initially, the mantel was just a beam from which to hang your wet cloak, but as center fireplaces became more elaborate, the low-end cabinetmaker met the high-end carpenter and early American homes were transformed by a simple mantel that adorned the warm fireplace it framed.
The earliest American fireplaces, including the corner fireplace was found in Pennsylvania and traced back from Germanic roots. In the mid 18th century Dutch hearths began to appear in the homes of prominent tradesman ornamented with Delft tiles that often displayed biblical themes perhaps to remind family members to remain on the “straight and narrow”.
Eventually these large cooking facilities evolved into smaller more heat efficient hearths with “fireplace walls” consisting of raised paneling and the addition of the “mantel shelf” which ultimately metamorphosed into the familiar “mantel” - that paneled fireplace surround that adds character to all our homes.
As the Georgian-style swept the country, so did our taste for aesthetically appealing details in architecture. The impressive features of the Georgian home with its arched fanlights, pedimented windows and doorways would not be complete without an ornate fireplace mantel. Setting the stage for social gatherings in the Victorian period, the parlor displayed this newly acquired taste for grandeur and elegance and the fireplace mantel became the focal point accenting this new sense of harmony in design.
However, as a result of the changing tastes and the expanding population of the twentieth century, many of these beautifully appointed homes were lost to demolition. In the 1960’s as Route 95 expanded southward, and after watching historic homes and sea captain enclaves disappear before his eyes, Francis J. Purcell of Philadelphia was drawn to the preservation of fireplace mantels. On his daily commute to and from New York City, he peered out the window to watch historic homes set afire for local firemen to hone their skills and the demolition of structures from Front Street to Water Street in Philadelphia, as underground tunnels paved their way to progress. In an effort to preserve a part of the past, Mr. Purcell began to acquire his stock of antique fireplace mantels from these demolished homes and, as a result of his efforts, he had become the leading expert having the most extensive collection of period mantels on the East Coast.
His son, Francis Purcell, Jr., grew up to appreciate these relics of the past, and it is only fitting that he now oversees operations at the company. Today their stock represents mantels extending from Maine to Georgia and west to Ohio, all made within the period of 1770 and 1820. Usually constructed of yellow or white pine and almost always milk-painted, this wood was plentiful and a close to perfect substrate for embellishment. The designs range from Pennsylvania Dutch-style relief carved fans and four-pointed stars to pineapple and acorn motifs in the southern states. Conservative New England preferred staying simple with linear and geometric folk art themes.
If you should decide to give your home the ultimate ‘housewarming gift’ the best recommendation for choosing the right mantel is to find your architectural theme first and design your interior around this concept. Whether you’re after a minimalist modern design or a primitive folk art theme, the fireplace mantel is the focal point of your room and it should integrate the furnishings with the architecture. If you have trouble visualizing a new fireplace mantel, you can always call ‘Uncle Franks Mantel Mobile’ and Mr. Purcell will deliver a selection of these heavy creatures to your door. Rest assured, your investment will not go up in smoke!
Martine M. White, ASA, AAA
Accredited Senior Appraiser
Bernards Appraisal Associates, LLC
www.bernardsappraisal.com
Posted by Gerald Escobar on Wed, Aug 31, 2011 @ 08:18 AM
Who would have thought that an earthquake and hurricane would happen in the same week? Now who would have thought that an earthquake and hurricane would affect the same region, in the same week?
Sometimes when we think about the risks we are willing to take, our minds tend to run what-if scenarios and mental hypothesis to answer “What are the chances?”. Our decision to either roll the dice or hedge our bets is based on our threshold of pain and pain can come in various forms that affect us financially, emotionally and even physically. I would bet that very few of us (non-geologists) predicted an earthquake along the mid-Atlantic this year however we know hurricanes are more probable in the Southeast and from June to November we may watch the Weather Channel more closely. Now we know that both can happen and they aren’t always events that are spread years apart.
The reality is that when you think about the risks your home and valuables inside are exposed to, earthquakes and hurricanes get big media coverage. However you could face an exponentially greater risk to your personal property from theft, fire, or breakage.
We don't ever want to think about any disasters but run these scenarios through your head.....
-do you or your kids ever light candles at homes? Ever forget to blow them out?
-someone uses a hair straightener and accidentally leaves it plugged in? (I drill this into my wife, whenever we leave the house)
-a door is left unlocked and you leave the house? Have young kids? It can easily happen.
-weather gets cold and pipe bursts? Have expensive rugs?
-a housekeeper is cleaning (think vacuuming and dusting) near antiques, paintings on walls, glass. Urn falls off mantle!
-lightning in the area and you are not home. How much electronics and media equipment do you have?
-repairman is at the house helping fix something upstairs. Did you put your jewelry away?
Irene and the earthquake were last week’s news but for those closely affected now comes the reality of damages, repairs and claims. What’s your pain threshold? Roll the dice or have a plan? Think about the top 10 most valuable items in your home (paintings, jewelry, electronics, antiques, rugs, collectibles, etc.) Now, your insurance company is happy to pay you for replacement, they just need to know the replacement value, make, model, description, quantity, purchase price and acquisition origin. Do you know the answers for those 10 items? Great if you do….how would you do if you had to answer that for all of the contents in your home? No one thinks they have much until a loss.
Posted by Milissa Malloy on Fri, Aug 19, 2011 @ 07:55 AM
It has become all too common recently to hear about a house fire that was the result of lightning. The headlines are endless. Property loss is more than $1 billion annually due to lightning and not only the number of claims but the size of lightning related claims has significantly increased.
Why?
This can be attributed to new sophisticated electronic equipment that exists in many homes nowadays. The Insurance Information Institute recently reported that lightning claims were up 15% from 2009 to 2010 as well as the average cost per claim increased 13%.
“The number of claims is down (since 2004), but the average cost per claim continues to rise, in part because of the huge increase in the number and value of consumer electronics in homes,” said Loretta Worters, vice president of the I.I.I. “Plasma and high-definition television sets, home entertainment centers, multiple computer households, gaming systems and other expensive devices—which can all be destroyed by power surges—are having a significant impact on claims losses.”
A direct lightning hit is not necessary to cause serious damage to electronics in your home. A strike within 500 to 1000 feet can cause damage or fire.
So what can you do to prevent this from happening?
-By adding a lightning protection system to your home you can be 99% effective in preventing lightning damage and fire. These systems are designed to provide a specified path to safely ground the current of a lightning bolt.
How do I pick a lightning protection system?
For additional general tips concerning lightning safety visit the Lightning Protection Institute.