TIPS YOU CAN USE: MAKE SURE YOUR HOLIDAY DECORATIONS ARE SAFE TO USE
Each year holiday season fires injure 2,600 individuals and cause over $930 million in damage. According to the United States Fire Administration (USFA), there are simple life-saving steps you can take to ensure a safe and happy holiday. By following some of these precautionary tips, you can greatly reduce your chances of becoming a holiday fire casualty.
Christmas trees--When buying a live tree, make sure the needles are green. The needles should not break if the tree is freshly cut. If you bounce the tree on the ground and needles fall off, the tree is too dry and should not be used. When you put the tree up in your home, be sure to keep it away from heat sources. Don't put it up too early and don't leave it up for more than 2 weeks. Always be sure that it has plenty of water. When you take the tree down, do not burn it in the fireplace. Recycle it or have it hauled away by a community pick-up service.
Holiday lights--Before using your lights, inspect them for bare spots or frayed wires, and use only lights that have been approved by a testing lab. Be sure not to overload your circuits--the best way to do this is to avoid stringing together more than 3 strands of lights. And never leave your holiday lights unattended.
Holiday decorations--All such decorations should be flame resistant. Be sure to place them away from heat sources. You should not burn wrapping paper in your fireplace. Such a fire may throw off sparks or produce a chemical build-up that could cause an explosion.
Candles--Always place candles in steady holders where they can't be easily knocked over, and do not go out of the house with candles burning. If you do use candles during the holidays, be sure to have a fire extinguisher nearby.
Smoke Alarms--Each year at Christmas is an excellent time to change the batteries in your smoke alarm. If your smoke alarm is hard-wired into the home's electrical system, be sure that it is working.
For more on holiday safety, please contact our office. This article is brought to you by Peter Tuttle, CPA at Cool Springs Insurance.com. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
Just what your handyperson client will like, a referral to win a Home Depot Ceiling Fan (actually a $175 gift card) to use on any evening or weekend project they choose. A blog (http://www.oneprojectcloser.com/giveaways/giveaway-ceiling-fan-home-depot-gift-card/) which deals with do it yourselfers, has a great giveaway this month. And even if you are not interested in the prize, they might like to know about the blog they could subscribe to.
If I win, I need a ceiling fan with remote control to install in our guest room.
This article is brought to you by Peter Tuttle, CPA at Cool Springs Insurance.com. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Many people overlook the need to properly insure their expensive jewelry, believing that it is automatically covered by their homeowners policy. While homeowners policies do cover jewelry, this insurance usually is subject to a much lower limit than the overall contents coverage. This reduced limit is called a "sublimit," and a typical sublimit is $1,500 for loss by theft of jewelry, watches, and precious and semiprecious stones. If your jewelry is worth more than the sublimit in your homeowners policy, you should consider purchasing specific insurance to cover it. The following is a good process to follow.
* Arrange an appointment with us to review your jewelry coverage. Bring as much information about your jewelry portfolio as possible, including any appraisals.
* If your high-valued jewelry has not been appraised within the last 3 years, consider obtaining an appraisal from a reputable jeweler. Insurance companies often require an appraisal on more expensive jewelry from a graduate of the Gemological Institute of America (GIA). The Institute's G.G., G.J., or A.J.P. designations at the end of an individual's name indicate that the jeweler has achieved a high level of professionalism with an education backed by a respected nonprofit organization.
* Make sure the appraisal has a description of the diamond's four C's -- (a) carat, (b) cut, (c) clarity, and (d) color. The "carat" refers to the weight of the diamond. The quality of the "cut" of the diamond results from the way light enters the stone and is reflected back. "Cut" is also used to refer to the diamond's shape, such as round or pear-shaped. The "clarity" refers to the prevalence of minor spots, lines, bubbles, or other natural imperfections within the diamond. The "color" denotes the tint a diamond may possess. Remember that the better the appraisal, the fewer problems you will encounter with the insurer if you ever have to make a claim.
* Purchase inland marine coverage that can be added via an endorsement onto your homeowners policy. This endorsement (also available as a separate policy) may provide much broader coverage than the limited protection found on the unendorsed homeowners policy. Check with your agent!
* Consider keeping any valuable jewelry you rarely wear in a safety deposit box at your bank.
* Review your jewelry protection with us at least every 2 years or whenever you sell or purchase high-value jewelry.
This article is brought to you by Peter Tuttle, CPA at Cool Springs Insurance.com. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
The following is a loss control tip you can use on your Web site or in client communications with the proper attribution to IRMI.
Defective electrical wiring systems cause approximately 40,000 residential fires annually, according to a United States Consumer Product Safety Commission (CPSC) study. In addition, electric cords and plugs are involved in about 7,000 fires annually. The National Electrical Safety Foundation offers numerous tips to safeguard the home against electrical fire and related losses, including the following.
* Verify that outlets and extension cords are not overloaded.
* Examine electrical cords to ensure they are not frayed, damaged, or placed under rugs or carpets.
* Verify that the proper wattage bulbs are being used in light fixtures and lamps.
* Consider installing ground fault circuit interrupters (GFCI) in bathrooms, utility rooms, and kitchens. This device protects people against electrocution by shutting down the electrical system if it detects any imbalance in the electricity.
* Take steps to safeguard electrical appliances from power surges. A power surge is a sudden rise of current or voltage in an electrical circuit that can last up to several seconds and can ruin electrical appliances and equipment, such as computers. You can purchase surge protection devices to safeguard against the problem.
* Consider updating the entire electrical system if the home is over 40 years old. Older homes are more susceptible to electrical fire. For example, many older homes contain aluminum wiring, which is much more susceptible to starting fires than the copper wire required by modern building codes.
* Install child tamper-resistant electrical outlets to prevent a child from inserting something into the outlet holes.
* Install arc fault circuit interrupters (AFCI) to avoid fires caused by arc faults. An arc fault is a discharge of electric current across a gap. This can be caused by improper electrical connections, pinched wire insulation, and overheated wires.
Notify your insurance agent when you make safety improvements to your home. Some of these may also qualify for discounted rates!
This article is brought to you by Peter Tuttle, CPA at Cool Springs Insurance.com. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
TIPS YOU CAN USE: DANGERS OF GOING BARE ON WATERCRAFT COVERAGE
Boatowners typically face large property and liability loss exposures from their boating activities while often going without proper insurance. The following loss scenarios point to the need for specialized boatowners coverage. Remember that many of these loss examples are not covered (or have tough restrictions) under the standard personal auto or homeowners policies.
* Your cruiser collides with a speed boat whose operator fails to yield the right of way, causing extensive damage to your boat. The owner of the speed boat does not have any insurance coverage.
* An expensive bass boat you just purchased is stolen from your home.
* Your 27-foot-long sailboat is damaged by a major hailstorm while docked at the marina.
* Your sport fishing boat is struck by lightning, incapacitating its electrical system.
* Your son's friend is water skiing behind your boat and he falls into the lake, injuring himself, due to the excessive speed of the boat.
* You negligently cause another boat to overturn to avoid a collision.
* Your outboard motor explodes, seriously injuring your next door neighbor.
If you have any watercraft exposures, please call our office for a review of your loss exposures and insurance solutions.
This article is brought to you by Peter Tuttle, CPA at Cool Springs Insurance.com. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
TIPS YOU CAN USE: ARE THE LIMITS OF INSURANCE FOR YOUR HOME ACCURATE?
Is the amount of property insurance on your home correct? What is the appropriate amount of coverage for your home? To begin with, it should be insured for at least 80 percent of its replacement cost when covered under a standard homeowners policy. Replacement cost refers to the amount necessary to repair or replace damaged building parts with items of like kind and quality. Some insurance companies even require 90 percent or higher figures when the guaranteed replacement cost option is offered. With this option, the policy pays the full cost of replacing your home, without any depreciation and often without a maximum reconstruction payment. (This gives you added protection if there is a sudden jump in construction costs due to a major shortage of certain building materials. Construction costs often "surge" following large catastrophes, such as hurricanes.) Note that guaranteed replacement cost coverage approaches can vary by state and are not even available in every state.
Many homes are either underinsured or overinsured. For example, some homes insured for long periods of time with one insurance company may have inadequate limits of insurance due to increased building costs. In many cases, homes have been remodeled and improved, and this information has not been conveyed to the insurance agent or company, resulting in severe underinsured home values. If your home is underinsured, you not only have inadequate protection for total losses, but you may also lack full protection for smaller losses.
Sometimes homes are mistakenly insured for their market value. However, market value is normally not indicative of the home's replacement cost. For example, market value also reflects the cost of the foundation and the nondestructible land value, both of which normally survive intact if the house burns to the ground and has to be rebuilt.
In addition, some homes may be insured improperly to meet mortgage company requirements. Some mortgage companies require the amount of insurance be at least equal to the mortgage balance on the house. The mortgage balance is also not reflective of the home's replacement cost, which is often considerably more but can also be less. Insurance companies and agents often struggle in properly educating mortgage companies about these distinctions, but there is nothing to prevent you from insuring to actual replacement cost if that is indeed greater than the mortgage balance. The problem occurs when the mortgage balance is greater than the replacement cost, which will result in the purchase of a higher limit than needed.
The bottom line is that you should work with your insurance agent to determine the correct replacement cost and resulting insurance limit for your home. Most agents use sophisticated replacement cost estimating packages that can fairly and accurately determine the replacement cost value of your home. Factors that these programs use to determine this figure include the following.
* Square footage of the home, including its configuration
* Construction costs for your community
* Exterior wall construction type, including frame, stucco, brick, or brick veneer
* Style of home
* Number of bathrooms and bedrooms
* Roof type
* Attached garages, fireplaces, built-in cabinets, and other special features, such as hardwood floors
The more advanced replacement cost estimating programs require detailed information to improve the valuation estimate. For example, a rectangular-shaped home with 1,800 square feet will have a much lower replacement cost than a similar-sized home with an "L" shape. In other words, the better cost estimating programs require information about the number of corners in the home. The more detailed information your agent asks about your home, the more confidence you can place in his or her recommended limit of insurance.
As a final note, you should request an annual review of your homeowners policy to keep up with increasing building supply and labor costs. Also ask your agent about the advisability of adding an "inflation guard" endorsement to your policy or about the availability of guaranteed replacement cost coverage to help assure that your home is properly protected.
This article is brought to you by Peter Tuttle, CPA at Cool Springs Insurance.com. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Windstorm and hurricane losses account for an inordinate share of homeowners losses every year. In particular, people on the southeastern and central eastern seaboard and the Gulf Coast face substantial loss exposures to hurricanes and tropical storms. There are, however, steps you can take concerning your home that can reduce your exposure to these losses. These include risk control measures to four critical parts of your home susceptible to high wind damage -- the roof, windows, entry doors, and garage doors.
* Roof -- The installation and design of a roof is a critical factor concerning protection from high winds and hurricanes. For example, the roof sheathing (the boards or plywood nailed to the roof rafters or trusses) can fail during a hurricane if not property installed. If many of the nails have missed the rafters, additional nailing is necessary. The sheathing on your roof should comply with the current building codes. In wind-prone areas, many building codes require six nails per shingle rather than four. Adding screws between the nails can also provide reinforcement. In addition, gables need to be tightly attached and reinforced to the frame walls.
Lastly, hurricane clips should be considered in hurricane-prone areas. These clips help prevent mammoth winds from ripping the roof off a house. The clips are made of galvanized steel and are used to connect the rafters to the roof at the top of the house and the bottom part of the house to a plate that is bolted to the slab. Properly installed hurricane clips enable your roof to withstand winds of up to 100 mph.
* Windows -- One way to protect your windows is to install impact-resistant shutters over all large windows and glass doors. Not only do they protect your doors and windows from wind-borne objects, but they can also reduce damage caused by sudden pressure changes when a window or door is broken. An alternative is the installation of impact-resistant windows and patio doors.
* Entry doors -- Solid wood or hollow metal doors are more effective in resisting high winds. They should have at least three hinges and a dead bolt security lock.
* Garage doors -- Because of their width, doublewide garage doors are more susceptible to high winds than singlewide doors. Retrofit kits are available for doublewide garage doors. These can reinforce your garage door by installing horizontal and/or vertical bracing onto each panel. Heavier hinges can also strengthen your home.
This article is brought to you by Peter Tuttle, CPA. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
TIPS YOU CAN USE: CELL PHONES AND DRIVER DISTRACTIONS
According to the National Highway Traffic Safety Administration, driver distractions are a contributing cause in approximately 25 percent of all motor vehicle crashes or about 1.2 million accidents. However, distractions can be hard to quantify, and the number of accidents due to driver distractions is difficult to define. What can further complicate matters is that there may be more than one distraction, such as eating while chastising a child in the backseat. In addition, vehicles have become much more sophisticated with options such as navigation systems, DVD players, and video games.
Cell phones are considered one of the leading driver distractions. As a result, more and more communities are placing restrictions on drivers' use of cell phones. The following tips are offered to motorists in regards to cell phone use in vehicles.
* You should wait until the car trip is complete before placing a call. Your cell phone's voice mail feature should answer a call while you are driving.
* Absolutely essential calls should only be performed while stopped. However, it is not wise to pull over on the side of the road, where a rear-end collision is possible. Instead, you should pull into a parking lot to perform this task.
* The phone should be placed where it is easy to see and reach.
* You should take advantage of speed dialing capabilities.
* You should never drive and talk on the cell phone during stressful, emotional, or complex discussions since the risk of an accident is heightened.
* You should consider using a hands-free cellular phone since some studies indicated that these are safer to use.
* You should never text message while driving.
This article is brought to you by Peter Tuttle, CPA. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Itemizing Tax Deductions - Should You or Shouldn't You?
Each year, taxpayers everywhere ask whether it's better to itemize their deductions or opt for the standard deduction. What's the difference and how does it affect your bottom line?
Some taxpayers must itemize, even if their deductions are less than the standard deduction. Those taxpayers include nonresident aliens, dual-status aliens, and individuals who file returns for periods of less than 12 months. Additionally, when a married couple files separate returns and one spouse itemizes deductions, the other spouse must itemize as well.
In general, itemizing your deductions saves you more tax dollars only if the deductions exceed the standard deduction. For 2007, the standard deduction for single filers is $5,350 and $10,700 for those filing jointly. For married taxpayers who file a joint return, the standard deduction will remain twice that of single filers through 2010.
Itemized deductions are certain expenses that you can use to lower total income, and thus, your taxes. The categories include:
• Medical and dental expenses;
• State and local income taxes, or sales tax;
• Real estate and personal property taxes;
• Home mortgage and investment interest;
• Charitable contributions;
• Casualty and theft losses;
• Gambling losses;
• Job expenses; and
• Miscellaneous deductions.
Some itemized deductions, including medical expenses or miscellaneous deductions such as investment expenses, safe deposit fees, professional education, employee job-hunting expenses, and tax-preparation fees, are not allowed until they exceed a certain "floor" amount. For this reason, grouping expenses so you can itemize certain years often helps.
The highest floor to exceed is for medical expenses. Your medical expenses are not allowed as itemized deductions unless they exceed 7.5 percent of your adjusted gross income (AGI). That means if you have an AGI of $100,000, the first $7,500 of your medical expenses won't count.
Miscellaneous itemized expenses are also deductible only after they exceed 2 percent of your AGI. So, with an AGI of $100,000, your first $2,000 of miscellaneous itemized deductions won't count.
If your itemized deductions do not exceed these floor amounts, there are a few things you can do to maximize your tax savings. You can elect to accelerate or defer the payment of certain expenses such as property taxes, certain medical expenses, charitable contributions, or interest payments. For example, the cost of elective medical procedures can be deferred until a later year. If you lack the cash for the cost, you can charge the expense on your credit card and pay the next month. The cost is deductible in the year it is charged, not when the payment is made.
With the standard deduction rising each year, careful planning is required to determine if bundling deductions will work for you. Then the standard deduction can be used every other year, maximizing your tax savings.
This article is brought to you by Peter Tuttle, CPA. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
TIPS YOU CAN USE: EVALUATE YOUR NEED FOR FLOOD INSURANCE
According to FEMA, flooding causes billions of dollars of property damage in the United States each year. If you are like many homeowners, however, you may be unaware that the standard homeowners insurance policy you buy does not cover flood losses. You may believe that you have a low risk to this peril but FEMA reports that approximately 33 percent of all flood claims occur in communities in which flooding is deemed to be a low to moderate risk. So do you really need a separate flood policy? The following tips and ideas may prove helpful in answering this question.
* Contact us to see if you live in a community that participates in the National Flood Insurance Program (NFIP), a prerequisite to qualify for flood insurance. Participating communities must agree to adopt and enforce certain floodplain management regulations, including building construction and zoning laws that minimize the risks of flood damage.
* Ask us to see if you are in a floodplain. Or, if you prefer, go to www.floodsmart.gov and select "What's Your Flood Risk?" Enter your home address and this Web site will tell you whether you are in a low-, moderate-, or high-risk area.
* Consider purchasing flood insurance even if you are in a low-to moderate-risk community. In these areas, you may be eligible for the Preferred Risk Policy, with premiums as low as $112 per year including coverage for your personal property.
* Note that a flood policy does not take effect until 30 days after you purchase the coverage. Thus, trying to purchase coverage after the local meteorologist announces a flood alert for your community won't work.
* The maximum limit of insurance in the NFIP for your home itself is $250,000. If your residence's value exceeds this amount, ask us about excess insurance for losses above the federal policy's maximum limits. This insurance may be available from private insurers.
* Don't assume that the government will bail you out if you suffer a flood loss and don't have a flood insurance policy. That decision is a gamble you may not win. Remember that federal disaster assistance, if available, is usually a loan that must be paid back with interest.
* Discuss all the pros and cons of flood insurance with us before making your final decision.
This article is brought to you by Peter Tuttle, CPA. You may contact me by sending an e-mail via the link to the right of my active rain blog page. Please visit my website at http://www.petertuttlecpa.com/
"I help individuals, families, small-businesses & non-profits with their income tax & insurance needs."
IRS Circ 230 disclosure: To ensure compliance w/ rqmts imposed by US Treasury Regs, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the IR Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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