The fact is most people own more things than they realize. It’s easy to remember the cars, the computer, the TV. But what about that holiday china in the garage? Or every pair of shoes?
All of it is regarded as personal property for insurance purposes. And if your home is destroyed by fire or some other disaster, having a list of your possessions makes filing a claim easier — and helps you put your life back together.
Comparing the value of your belongings to the “contents” limit listed in your policy helps you make sure you have enough 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 use a video camera, recording, and describing items as you walk through your house. Or, you can use a regular camera and create a home inventory checklist.
Remember: Even an incomplete inventory is better than nothing at all.
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 homeowner’s policy covers valuable items such as jewelry, furs, art, and antiques, only up to set dollar amounts. If the cost of replacing them exceeds these limits, you may want to purchase scheduled personal property coverage.
We hope you’ll never need the home inventory, but preparing for the worst can prevent a lot of hassle later. Start yours now!