Create an Inventory of Items Covered by your Homeowners’ Policy
In addition to the real property (the land and home itself), homeowners policies generally cover all of your personal possessions as well (or at least those that can reasonably be expected to be kept at the home). Creating an inventory of these items will help expedite the claims process and ensure that you receive just compensation in the event of a loss.
Historically, written lists of items, with estimated values (or receipts) were kept. As film and digital media has become more prevalent, more homeowners are taking pictures or creating videos instead. A video walkthrough is a wonderful tool, since it will not only capture the items you specifically identify, but will also capture some of the finer details of the home (wainscoting, custom tile, etc.).
These video methods can be augmented by written lists or digital textual documents, such as spreadsheets or word processing files that can be stored on hard medium or in the “cloud”. The inventory methods are numerous. The main point is to generate as much evidence of your possessions as possible to support your claim. Take extra care to inventory items you would like to be replaced quickly in the event of a loss, and high-dollar items (consider also purchasing an insurance rider for these items). Capture as much information as possible so that a cost can quickly be determined (brand names, model numbers, specifications, etc.). The highest cost items should be accompanied by receipts.
Make sure you visit every room (garages, attics, basements and sheds are often overlooked) and don’t forget to update the list annually or when making major purchases. Store a copy of this information away from the home so that it is not destroyed in a fire or other event (in the “cloud”, with a family member, in a savings deposit box).
Another important action to take is to review this list with your insurance agent. Provide them a copy and schedule a time to walk through the list. Agents will be able to point out commonly overlooked items as well as offer suggestions for improving the documentation to help facilitate the claim payment process. Providing the agents a copy of the inventory list also allows them to file the list as well as identify items that may require individual insurance riders to enable full protection. A discussion about the inventory list may identify differences between your expectations and the legal terms of your insurance contract. For instance, you may find that the “priceless” work of art you inherited from your grandfather isn’t covered since it wasn’t purchased and has no readily determinable market value. You can purchase a rider to protect it should you want to, but at least you will know what your exposure is, rather than finding out you aren’t covered when you file your claim.
Lastly, be sure to add significant purchases to the inventory list. Also, an annual review of the list will help to identify items that you may have disposed of or added, which you may have forgotten to add to the list upon purchase. Do this in conjunction with your annual home insurance rate review to make sure that your pricing and coverage levels are up to date.
In addition to the real property (the land and home itself), homeowners policies generally cover all of your personal possessions as well (or at least those that can reasonably be expected to be kept at the home). Creating an inventory of these items will help expedite the claims process and ensure that you receive just compensation in the event of a loss.
Historically, written lists of items, with estimated values (or receipts) were kept. As film and digital media has become more prevalent, more homeowners are taking pictures or creating videos instead. A video walkthrough is a wonderful tool, since it will not only capture the items you specifically identify, but will also capture some of the finer details of the home (wainscoting, custom tile, etc.).
These video methods can be augmented by written lists or digital textual documents, such as spreadsheets or word processing files that can be stored on hard medium or in the “cloud”. The inventory methods are numerous. The main point is to generate as much evidence of your possessions as possible to support your claim. Take extra care to inventory items you would like to be replaced quickly in the event of a loss, and high-dollar items (consider also purchasing an insurance rider for these items). Capture as much information as possible so that a cost can quickly be determined (brand names, model numbers, specifications, etc.). The highest cost items should be accompanied by receipts.
Make sure you visit every room (garages, attics, basements and sheds are often overlooked) and don’t forget to update the list annually or when making major purchases. Store a copy of this information away from the home so that it is not destroyed in a fire or other event (in the “cloud”, with a family member, in a savings deposit box).
Another important action to take is to review this list with your insurance agent. Provide them a copy and schedule a time to walk through the list. Agents will be able to point out commonly overlooked items as well as offer suggestions for improving the documentation to help facilitate the claim payment process. Providing the agents a copy of the inventory list also allows them to file the list as well as identify items that may require individual insurance riders to enable full protection. A discussion about the inventory list may identify differences between your expectations and the legal terms of your insurance contract. For instance, you may find that the “priceless” work of art you inherited from your grandfather isn’t covered since it wasn’t purchased and has no readily determinable market value. You can purchase a rider to protect it should you want to, but at least you will know what your exposure is, rather than finding out you aren’t covered when you file your claim.
Lastly, be sure to add significant purchases to the inventory list. Also, an annual review of the list will help to identify items that you may have disposed of or added, which you may have forgotten to add to the list upon purchase. Do this in conjunction with your annual home insurance rate review to make sure that your pricing and coverage levels are up to date.
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