If a fire or another disaster destroyed your home, would you be able to account for all your items? Probably not. It is hard enough to recall everything you own in normal situations, but it is even more challenging when tragedy strikes.
Any large-scale loss of property is devastating. However, if you make an inventory of your personal belongings, it could make the process of recovery and filing an insurance claim much easier.
Why you need an inventory to make an insurance claim
Insurance fraud is a fact. Many people have used and abused the “My 72-inch TV has been stolen” line that insurers proceed with caution when it comes to these kinds of claims. You will not run into the same problem if your home is destroyed in a fire, but then who is to say you really did have a 72-inch TV in the first place if you cannot prove it?
To make a claim under your insurance policy, you need to be able to report what has been lost, stolen, or broken. If you have unfortunately suffered a devastating loss event such as a flood or fire, you could be facing the daunting prospect of having to account for all your worldly possessions.
Creating a detailed inventory now will help ensure your settlement comes close to covering your actual loss.
You have more stuff than you think
Even if you do not think you own a lot of things or that they are not expensive, think again. Look at your home, apartment, or condo from the perspective of a total loss. What if everything was gone and you had to start over? You might get an approved claim from your insurance provider. But will it cover all that you own, from your entire wardrobe to your custom drapes? Are your coverage limits high enough to replace everything at current market prices?
Making an inventory after a loss is much harder
Creating a comprehensive inventory of all your possessions is a tall task even before a loss event. It is unlikely you will remember everything if you wait until after the loss to make an inventory. It is even less likely that you will remember supporting details like model numbers and brand names.
Keep in mind any delay in providing information to your insurance company will hold up the settlement of your claim.
Technology makes the task easier
You can make a handwritten list of your items if you prefer, but there are tools that can make this task much easier and quicker.
Photographs are a great way to record many items quickly. They are also very useful for capturing the condition of your items accurately. You should take pictures of serial numbers and model numbers for the most accurate representation of your property (this can also be useful for documenting proof of any household item warranties).
- Applications specifically designed for creating an inventory of your belongings can be downloaded. Choose one with positive reviews and the proper privacy settings. Do not include your home address! Here are a few options to get you started:
- Forms provided by your insurance company to create an inventory can help. Reach out to your insurance professional for more information.
Gather your receipts and information
Unless you have the most basic coverage through your homeowner’s policy, you should have replacement cost for personal property. Not sure? Read your policy to confirm. What is replacement cost? It is an insurance term that guarantees your property will be replaced by something brand new of equivalent quality and value.
When you are compiling your inventory, gather available receipts and other useful documents. Even if you do not have the original receipt for your beloved flat-screen TV, the manufacturer’s warranty or operations manual might still be useful if you need to make a claim. All too often, these documents end up in a drawer in the kitchen or languishing in a box in the attic or basement. Gather up all those documents now and save yourself a headache later.
Store your inventory off site so it is safe from loss or damage
Once you have completed your inventory, store it off site. This will ensure that even if you cannot gain access to your home, you can still get to your inventory.
- If your insurance company has a copy of your inventory, it could help with the claims process.
- You could also place a copy in a safety deposit box (along with any supporting documentation).
- Keep a digital copy in the cloud (along with scans or photographs of useful documents, such as receipts).
Share your inventory with your insurance professional
Even if you have a reasonable idea of what your more expensive items are worth, you might be surprised to learn the total value of your clothing, dishware, jewelry, etc. You could vastly underestimate their value and remain under-insured. This can result in a very unpleasant surprise if you should ever suffer a total loss.
When you give your insurance company a detailed inventory of your personal belongings, they can alert you if you need extra coverage for all your items. This will help you know if your insurance needs are covered should the worst happen.
Start your home inventory today and remember, even a partial list is better than no list at all.
