When purchasing an insurance policy for your home and personal property, there is a lot to think about. You need to assure that you have enough coverage to resolve problems both large and small- from a burst pipe and soaked drywall to an intense storm that blows a hole in your roof. It’s also important to consider the items inside your home. Have you taken the time to consider what it could cost you if you suffer damages to everything you own? How does the claims process work when you experience a loss of personal property, and how do you go about proving your claim?
One of the most important things you can do to protect your personal property is to make a home inventory list, and the time to do it is right now. Look around you- the desk you may be sitting at, your bedroom, your kitchen. Take a moment to consider every item you see, and what the value of that item is. How much would it cost you to replace every item in the room you are in right now? It’s likely much more than you expect. That television you purchased on Black Friday may have been at a deep discount, but there’s no guarantee you’ll be able to get it at that price tomorrow. What is its actual value now? The costs add up quickly, when you take a true inventory of your personal property. Pots, pans, beds, pillows, furniture, rugs, utensils- the list goes on and on. If you have yet to purchase your home insurance policy, having a detailed list or record of your itemized personal property will help you to determine how much insurance you need. Having documentation or evidence of what items you’ve lost to damages gives you a head start when you’re filing a claim.
Keeping in mind that insurance does have limits on what will and won’t be covered by a personal property policy, and that some luxury items require separate riders, like jewelry, fine wine collections, art, etc.- any time you want to make a claim, your insurance company is going to ask you for a list of items lost. If you haven’t put together an inventory at all, or if your information is incomplete, you run the risk of not getting paid enough to replace those items, or you may not even get paid at all. In the event that you’ve just experienced the kind of disaster or traumatic event that leads to needing to make a major claim -including one for your personal property- chances are you’ll be exhausted, stressed, and under duress. The last thing you’ll want to be trying to do is inventory all that you’ve lost in your mind, hopeful that you’re not forgetting anything crucial. Having a detailed list or documentation means you have one less thing to be worried about.
One of the simplest ways to start the home inventory process is to walk through your home with a video camera or your phone and capture each room on video. You can lift corners of rugs to show the labels, show the names and brands of specific items and electronics, and so on. While this video on it’s own isn’t enough to make your claim, it’s a great starting reference for you to go through and begin listing everything, and it’s an excellent supplement to your itemized list when you’re submitting your “proof of loss.” Go through each room, one by one. Open drawers and closets, jewelry boxes and wine fridges, show labels and serial numbers so that everything is visible. Going through each room one at a time and making separate recordings for each makes writing everything down in list form easier. It’s also helpful in the event that the claim you need to make or damages are specific to a certain part of the home. Finally, make sure you save copies of all of your videos and documents somewhere safe and outside of your home. Whether that means uploading it to a digital service or keeping a physical copy in a safe deposit box, having an inventory that gets destroyed in the same claim as the rest of your items won’t do you any good. Having as much detailed documentation as possible is important- while some documentation is better than nothing, claims never happen on a convenient schedule. It’s best to have a formal inventory in place as soon as possible.
Aside from having a list of items that you can provide to your insurer in the event that you need to file a claim and be compensated, it’s important to understand the value of your items. Knowing the value of the contents of your home can allow you to ascertain whether you have the right amount of coverage, and when or if you need to purchase additional riders for items that fall into exceptional categories. Remember to consider the replacement costs, and not the actual cash value. This refers to things like the TV bought on sale mentioned previously. Discuss the fine points of your policy with your insurance professional, to understand what the basis for settlement claims will be, and make sure you know whether your policy covers replacement costs or actual cash value. Knowing the difference, and what to expect when you make a claim, could mean thousands of dollars in one direction or the other. Review coverage with a professional to make sure you have policies in place that give you the protection you’d expect in an emergency. No one wants any additional surprises when it’s time to replace a household full of goods after a loss.
There are many ways to make and store a home inventory. Whether you opt to physically write things down, keep an itemized list in a phone or computer app, take pictures, keep receipts, or video record everything- the important thing is that you have the information you’ll need, and that you keep it somewhere safe and secure in the event that the worst comes to pass. Having a home inventory is vital when making insurance claims. Keep your inventory updated as well, making needed additions and subtractions at least every other year, and be sure to email copies of the updated lists to your insurance agent, so you can be sure that you have appropriate coverage. Making sure you have a home inventory is vital, so that you are certain you and your personal property are protected. If you aren’t sure about your coverage, reach out to talk with a professional today.
