Tom's Blog
So, can you list everything you own from memory? Do you have an itemized home inventory list? I didn’t think so. Very few people take the time to do this.
The fact is most people own more things than they realize. It’s easy to remember the furniture stereo, computer, TV but what about every tool in the garage? Or every pair of pair of pants or shoes in your closet?
For insurance purposes all of these items are considered personal property. And if your home is destroyed by fire, tornado or some other disaster, having a list of your possessions makes filing a homeowners insurance claim easier — and helps you put your life back together in the shortest time.
Why should I complete a home inventory? What’s the best way?
Comparing the value of your belongings to the “contents” limit listed in your policy helps you make sure you have enough personal property insurance to replace them if they are lost, stolen or destroyed as a result of a covered loss. The easiest way to take an inventory is to take pictures or better yet, use a video camera, recording and describing items as you walk through your house. Open closet doors, drawers and cabinets to document as much as possible.
Here are some tips for completing your home inventory:
- Add brand names and descriptions where you can, especially on large-ticket items. Serial numbers are helpful to note.
- Keep any receipts you have with the list to make the claims process easier.
- Store your video or photo inventory somewhere safe offsite so you won’t lose it if your house is damaged.
- Update your personal property records when you purchase new furnishings and valuables.
- Though the task may seem daunting, it’s important to try. An incomplete inventory is better than nothing at all.
How much personal property insurance do I need?
We can assist you in analyzing your insurance needs and help you decide how to most effectively protect your personal property. You should consider full-value coverage, which will pay for the replacement value of your personal belongings. A standard policy typically covers personal property only up to its actual cash value, determined by taking the replacement cost and deducting depreciation, which can be substantial. (For example, a 5-year-old TV is usually worth much less than what it would cost to purchase a new one.)
Finally, remember your homeowners policy covers with specified limits valuable items such as jewelry, guns, furs, art and antiques. If the cost of replacing them exceeds these limits, you may want to purchase scheduled personal property coverage.
The Insurance Information Institute has a FREE online tool that can help you create your inventory. Just visit www.knowyourstuff.org for more details.
We hope you’ll never need the home inventory, but preparing for the worst can prevent a lot of hassle later. We have helped many families who have lost everything in fires, tornadoes and other perils rebuild their lives. Unfortunately, none of them were prepared with a home inventory which added much stress and time to get back to whole.
