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While homeowner’s insurance is central to protecting your home and belongings from damage or loss, taking inventory of your possessions is also an important part of making sure you’re adequately covered.
Taking inventory you say? Why?
According to the Insurance Information Institute (I.I.I.), taking a home inventory can drastically speed the claim-filing process (allowing you to collect the funds faster), verify losses for your tax return and purchase the right amount of coverage to protect your valuables.
And while the task of a home inventory may seem a little daunting, it doesn’t have to be. With a few simple tips, you can organize the inventory process to be both quick and thorough.
Step One: Create a List
Start the inventory process by making a list of your possessions, detailing any information you have about your belongings such as the make, model, where you bought an item and how much you paid for it.
When it comes to appliances and other electrical equipment, you can make a separate category detailing the serial number or product number. Typically this information can be found on the backside of an appliance or underneath the tool (on smaller objects).
Clothing, too, can be put in a separate category. The I.I.I. recommends counting articles of clothing—pants, shirts, sweaters shoes, etc., and making a special note of any articles that are of significant value.
If you have any receipts, appraisals or contracts for any of these items, be sure to clip them to your list. Needless to say, anything documenting the value of your possessions will be of help to insurers if you ever need to file a claim.
Make it easy tip: If starting a list seems intimidating, start small. Document the most recent purchases and large items first and work your way down to older purchases and smaller items.
Step Two: Single Out Especially Valuable Items
Artwork, jewelry and antiques can be particularly devastating to lose. If you’re not sure exactly how much these items are worth, you should probably get an appraisal done on these types of items.
But more importantly, make sure to ask your home insurance agent if these items will be covered under your homeowner’s insurance policy. Some special items, such as those mentioned above, will not be covered under a standard policy. If this is the case for you, you’ll want to purchase a rider, or extension to your policy, to make sure these items are properly insured.
Step Three: Snap Some Photos
Taking pictures and/or video of your belongings is highly recommended by insurance experts. In doing so, you create a visual record both for yourself, and for an insurer if your home ever suffers significant damage or ruin.
After you’ve captured your belongings on film, be sure to label the video or photos, explaining what’s shown, where you bought it, and its value.
Step Four: Copy Your List to a Personal Computer
Remember that list you made in step one? You’ll want to enter that information into a computer program to create and keep an electronic file of your inventory. In combination with your photos and video, safeguarding your inventory on a PC will give you an added layer of protection—allowing you to provide hard copies of your inventory to an insurer.
Make it easy tip: Home inventory software is now available to make creating an electronic file even easier. Programs like Know Your Stuff (made available through the I.I.I.) are easy to use and have great features like room-by-room inventory lists. Best of all, you can download this software for a great price—free.
Step Five: Store Files, Lists and Photos in a Safe Place
As you might imagine, storing your inventory information at home can be risky if your home suffers major fire of flood damage. Instead, keep your records in a safe deposit box and give a friend or relative a copy for added convenience.
Experts recommend reviewing your inventory annually to make any necessary adjustments. Moreover, you should try to update your records whenever you make a new purchase or addition, or if you sell one of your valuables. This will help you maintain the coverage you need—nothing more and nothing less.
Make Home Inventory a Priority
While taking inventory of your possessions may not be the most exciting activity in the world, it doesn’t have to be a painstaking process. By organizing the process and taking advantage of new products, you can get it done and over with.
And remember, ensuring proper coverage of your valuables will save you money if you ever need to file a claim. So don’t be intimidated by home inventory. Use these tips to get it done and secure affordable home insurance on your treasured items!
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