If you lost all of your personal belongings in a fire or another catastrophe, you likely wouldn’t be able to recall all of your possessions from memory alone. You can test that assumption by closing your eyes right now and listing all your valuable belongings in each room of your house. Even if you manage to get 80% right, you left 20% out, and you haven’t answered an even bigger question: What is it all worth, and does my home insurance cover everything?
Here’s where a home inventory shines.
In other words, it’s your safety net in a disaster, ensuring a smooth claims process and protecting your financial well-being. Most homeowner policies offer replacement cost, which reimburses you for replacing items with new ones of similar quality. No depreciation deductions here – a godsend after a major loss when you are wondering what does your home insurance cover.
Despite our trusting ways, home insurance fraud is a fact. So many people have used and abused the “My Roku 50-inch TV has been stolen” line that insurers proceed with the utmost caution when it comes to these kinds of claims. While a fire eliminates the “stolen TV” scenario, proving ownership of valuables is crucial.
The solution: a detailed home inventory. Document everything of value with clear photos, including:
- Item description
- Serial numbers (if applicable)
- Purchase price
- Purchase date
- Receipts (copies are fine)
Pro Tip: Store this information securely outside your home, like a safe deposit box.
Pictures are worth a thousand words (and a faster settlement):
- First, take 360-degree photos of each room, capturing major furniture and appliances.
- For valuable collections (silverware, coins, etc.), photograph them individually and consult your insurance agent to ensure adequate coverage. Riders might be needed for high-value items.
- Don’t forget policy limits! Your policy might have limitations on specific categories like jewelry or electronics. Review your policy and understand these limits.
- Lastly, timestamp your photos for verification purposes. Store them along with your list and receipts in a safe place.