After a catastrophic event such as a flood or a fire, there is a lot of confusion and chaos. If you have suffered a loss of your property, you need to find a new place to live. If your contents have been destroyed, you need to file a claim to replace them. However, too many people trying to recover from a crisis find themselves at a disadvantage if they have not prepared a home inventory.
A home inventory is simply a list of all the insurable items in your home. Imagine standing before a destroyed room and trying to remember everything that needs replacing. People often forget to add items to the claim or struggle to remember makes, models, and values of their possessions. Others may find that even if they have an initial inventory from when they moved into the home and established a homeowner’s insurance policy, that list doesn’t reflect all of the items in the home they have accumulated since then.
Therefore, a home inventory is useful for setting the proper level of insurance coverage each year, and for having a quick reference of all the items lost in the incident – without having to wrack your brain or do a lot of impromptu research.
Types of Home Inventories
Until recently, a comprehensive written home inventory was the best way to keep track of your belongings. However, there are now apps which you can download to your phone to create a home inventory. These apps allow you to digitally record the written list, as well as to take and store a photo of each item on your list. Adding a video walkthrough of your home allows you to show each item and establish proof of ownership.
By utilizing a combination of these techniques, you can best protect yourself. A video can present an overview of the entire room and all the decor and furniture which was resident. Photos of each item provide further clarification, and an itemized list is an easy reference point for making a claim or setting up an initial declaration of value when obtaining insurance. Once the inventory is complete, you can update annually with items that may have been added or replaced.
Pro Tip: Include the item’s manufacturer, make and model, purchase price and purchase date to make your claim move more smoothly.
You should keep multiple copies of your home inventory, whether in a fireproof safe, a safety deposit box, or digitally saving it in the cloud. You may also wish to send any written or video home inventory to your insurance agent, who can keep it offsite as a safeguard.
More Tips on Creating a Home Inventory
- If doing an initial home inventory, take it one room at a time. Check closets and cabinets for items that have value but are out of sight (and therefore possibly out of mind). Recording one room at a time makes the process easier to tackle.
- Don’t forget to inventory your attic and garage. Check for anything of value stored in detached buildings on your property.
- Be sure to catalog your most valuable possessions, such as antiques, art, jewelry, collectibles, and electronic equipment. Some insurance policies do not cover fine arts and valuables without a specific rider, so be sure to check with your insurance agent regarding your policy.
- If you are moving to a new home, it is the perfect time to record a home inventory. You can take notes as you pack each room, then add new items you place in each room as you unpack in a new location.
- If redecorating or renovating, note purchases and save receipts.
- For clothing, it is usually sufficient to group by clothing type, for instance, “four pairs of jeans, four pairs of sneakers, seven dresses. However, if you have designer clothing, purses, shoes, briefcases, or suits which are more valuable, itemize accordingly. The same goes for household items or tools.
Once you have a comprehensive list of all your belongings, you can obtain the right amount of insurance to cover you in the case of fire, flood, or theft. Review your list with your trusted insurance agent to make sure your coverage is adequate, and you have the best policy for your needs.
At Ezzi Insurance Advisors, our primary goal is to educate our clients so that they understand their insurance policy – and what to expect should something happen. We are with you every step of the way. Call us today to get started or to ask any questions you may have.