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How to know what items you own are worth insuring

What items in your home or office should you be insuring? Should you insure something just because it is or isn’t electronic? Here are some guidelines to help you decide.

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Insuring your belongings – what to skip, what to insure

Should you insure something just because you own it, or should you skip insuring some items simply because their value is not exorbitant? How can you know which items are worth insuring? It’s better to consider these scenarios before something is lost, stolen, or damaged.

Stephen Ebbett, President of lifestyle insurance brand Protect Your Bubble, has assessed how to take stock of your stuff and evaluated different coverage options, noting that “many of us couldn’t make it through the day without our smartphone, and life would be tough without a working refrigerator. And then there are the special occasions like business trips or vacations that could be marred by an uninsured mishap.”

How to know what is worth insuring

Ebbette outlines the following ways to determine what items you own in your home or office are worth insuring:

Take a look at your deductibles and coverage: Maybe you have homeowners insurance and assume that it will cover an expensive appliance. But many homeowners have deductibles that exceed the value of the appliance, so in effect, the appliance is unprotected. Perhaps you rent your home and think your landlord will take care of damage to the contents you own in case of a mishap that isn’t your fault. Chances are, your stuff isn’t covered. It pays to find out.

Look closely at replacement costs: Many consumers purchase items like smartphones and tablets through a carrier that subsidizes the actual cost. However, if your smartphone or tablet is lost, stolen or damaged and you don’t have insurance on it, you may be required to pay the true purchase price to replace it, which can be considerably higher than the original price you paid.

Evaluate the true cost of self-insurance: Some people assume it’s cheaper to just pay out of pocket to replace lost, stolen or damaged items rather than insuring them. That depends on the rate you pay and the cost of the item you’re replacing. Will you have enough cash on hand to replace items you use every day if you need to? It’s important to make an informed decision.

Review your choices: There are more options now than ever before when it comes to insurance, and it’s easy to compare insurance rates online and find affordable coverage for everything from gadgets and appliances to rental cars, renter’s insurance and travel. You don’t have to take whatever the car rental company is offering or accept only manufacturer’s or in-store warranties and insurance policies. Shop around and then make a decision.

Consider the hassle factor: When making a decision about whether or not to insure your stuff, price is important, of course, but so is your time and productivity. If you have to wait weeks to receive the money you need to replace an item you depend on every day, your coverage may not be a bargain. Take a look at the claims process and make sure you’ll get speedy service.

The American Genius (AG) is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

Business Finance

Kodak’s cyrptocurrency could save themselves and photographers

(FINANCE NEWS) Kodak’s foray into cyrptocurrency is more than a financial play, it could be their very salvation in some peoples’ eyes.

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Not one to be left behind, Kodak recently announced their decision to hop on the cryptocurrency bandwagon with their own currency for photographers: KodakCoin. It’s not as hokey as it sounds, we promise.

It’s easy to make fun of Kodak, the Blockbuster of film companies, for buying into the cryptocurrency world, but their motive isn’t as bizarre as it first appears.

KodakCoin is actually a virtual token that will be used on Kodak’s new photographer platform, KodakOne. The idea behind the platform is that photographers can register their work and monetize any cases of copyright infringement, all through the KodakCoin system.

KodakCoin itself is based in the same foundation as Ethereum, and the KodakOne platform uses the same blockchain technology that we’ve come to expect when dealing with cryptocurrency.

As far as KodakOne goes, most of the authentication process is autonomous. Once photographers have uploaded their work and records of fair use, KodakOne searches for instances of unauthorized uploads and then requests payment from the uploader. The payment is processed in KodakCoin, and photographers are left with 60 percent of the resulting currency while Kodak and Wenn Digital share the other 40 percent.

Perhaps the most interesting aspect of this whole affair is the effect that merely announcing KodakCoin had on Kodak’s stock. After revealing KodakOne and the accompanying KodakCoin at CES on Tuesday, Kodak’s stock hit a high point that more than doubled their previous stock value. This goes to show how infatuated our culture is with cryptocurrency at this point, but it also raises some questions about Kodak’s true motives: is KodakCoin a legitimate enterprise, or a Hail Mary pass?

Kodak’s official stance on the matter is that their move into cryptocurrency represents their initial business goal: to provide photographers with a stable, supportive platform that places their needs and concerns above those of similar venues. On the other hand, sources virtually everywhere have been quick to skewer Kodak for what appears to be an obvious bid for relevancy in an era unsuited for the dinosaur of a company.

There’s no telling where KodakCoin will take the aging company, so for now, these speculations will have to do. KodakCoin goes public on January 31st of this year.

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Business Finance

Super-investor Warren Buffett calls cryptocurrencies a mirage

Famed investor Warren Buffett has stated he believes cryptocurrencies like Bitcoin will end badly because they are a “mirage.”

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For many, cryptocurrencies have become an investment well worth the risk, but for many others they are something to vehemently rail against. Try posting something on Facebook about crypto and see if you don’t get lovers and haters instantly weighing in.

One of the most prominent members of the “rail against” group is CEO of Berkshire Hathaway, Warren Buffett.

Buffett, while widely respected for his shrewd investment foresight, is not a fan of cryptocurrency and warns potential investors he thinks, “almost with certainty they [cryptocurrency] will come to a bad ending.”

Buffett went on to state to CNBC, that he didn’t really understand how Bitcoin operated but he would never “have a position in them.”

Will Buffett’s word have an impact on cryptocurrencies like Bitcoin? Surprisingly, Buffett’s words have had little effect (so far) on Bitcoin’s value.

Remember a few months ago when Buffett bought Synchrony? The lesser-known stock seemed to take off overnight after Buffett/Berkshire Hathaway’s investment, leading us to believe than many powerful investors take heed of Buffett’s business acumen, which could potentially impact how other investors feel about cryptocurrencies overall.

Buffett told the Washington Post, “there are basically two kinds of assets: one you look to the stream of income it will produce and the other you hope like hell that someone will pay you more for it.” The second type would most definitely include Bitcoin.

Buffett contends that since cryptocurrencies are backed by computer power instead of a national bank, they are unreliable and fluctuate too much to be trusted.

The takeaway?

There is no doubt that Buffett is the go-to man for investments, but how can you repudiate Bitcoin and other cryptocurrencies worth if you admittedly do not understand how they work? If you don’t understand how they work, how could you possibly appreciate their value?

I’m not sure if this was meant to be a sarcastic statement on Buffett’s part, or if he genuinely doesn’t understand how they work, but still dislikes them. Back in 2014, Buffett told investors that it was nothing more than a “mirage” and that investors should “stay away from it.”

There’s no doubt, the man is a genius in the business sphere, but is he right about cryptocurrencies?

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Business Finance

Spotify files to go public directly, won’t be the last to buck tradition

(FINANCE) Spotify directly filed to join the stock market late December, forgoing the traditional IPO process. Will other tech companies follow suit?

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It’s official: Spotify, the wildly popular music streaming platform, took a leap and filed with the SEC to become a public company late last year. Many in the tech industry expected this move was in the works, and the news was confirmed by Axios this week.

However, the most noteworthy part of this announcement is how Spotify has chosen to join its competition in the public space.

Instead of entering the stock market through a traditional IPO process, Spotify has reportedly opted for a “direct listing,” which means it won’t need to travel to seek out investors and will bypass bank underwriting fees, among other things. As a direct listing, Spotify could also promote its new business model to the media ahead of its projected Q1 debut, something SEC rules strictly prohibit for IPOs.

The direct listing process could also encourage high stock value sales day-of debut, avoiding a “leave money on the table” situation, which can happen when high net worth individuals and institutional investors get first dibs on IPOs but banks recommend the company only trades up to about 20 percent or so. Under its chosen process, Spotify stock values could debut much higher, driven by demand and what investors are willing – and able – to pay.

By taking this non-traditional route Spotify will, however, forgo potentially millions of dollars they could have fundraised in an IPO. Those dollars could have helped pay down debt or settled lawsuits, but Spotify’s direct listing move seems to be about more than money. Spotify was last valued at $8.5 billion, so it might not need monetary help anyway.

Overall, a direct listing may reduce the hassle of going public. Spotify is just filing paperwork to make it legal for anybody to trade company shares, basically. Direct listing is casual and less structured.

However, some are concerned that chill approach won’t do enough to help Spotify once it’s actually public. Sure, networking with investors to build equity and relationships may be tedious, but those connections could pay off down the road when it’s time for financial reporting and underwriters can help shareholders trade more easily, along with Wall Street sponsorship aids that help buyers and sellers in similar ways, according to David Golden of Revolutions Ventures.

Spotify’s actions could be risky, too, as their stock may not fit customary Wall Street standards and in turn be avoided by some investors, David Menlow, president of IPOfinancial.com, told Marketplace.

For now, all eyes are on Spotify and its decision. Wall Street, industry leaders, and even the SEC are all interested in how their direct listing will play out. As others in the tech space have expressed frustration with the traditional IPO process before (think Uber), more companies may follow suit if Spotify succeeds as a directly listed public company. That could put pressure on Wall Street and the SEC to change the IPO process, too.

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