A simple step that you can take that can save money to the tune of hundreds of dollars in addition to saving countless hours of hassle is to have an inventory of all the items you possess. If disaster strikes and you lose all or part of the contents in your house, the homeowners insurance company will not simply reimburse you for your household contents on your word. It's important to have documentation of everything in your house.
To accomplish this, take a video camera and walk through your house. Take video of all the contents inside. Be sure to take the time to video tape items stored inside drawers or boxes such as jewelry. Don't simply take video of expensive items. Items such as clothes, CDs and toys may not seem to be worth much individually, but they can add up to a substantial amount of money when combined together and in the case of a disaster, they will all need to be replaced. If you don't have a video camera, you can do the same inventory process with a camera.
In addition to having a video or photographic record of all the items you own, you should write a physical list with an estimated dollar value for each item. By doing this, you can ensure that you have enough homeowners insurance to replace all the things that you own. The list will allow you and your insurance agent to value the correct amount of coverage you need.
Having a video and physical inventory will help you settle any homeowners insurance claims much faster as the insurance agent will have proof of exactly what was in your dwelling. It'll also mean that you'll be much less likely to accidentally forget something if you need to make a claim so that you get reimbursed for the full amount you're owed. The inventory video and list will also provide you with valuable documented evidence to substantiate any losses you claim on your IRS income taxes.
While you can write out your list by hand, the
Insurance Information Institute (I.I.I.) has a free computer software program that can help you make your household inventory. It already comes with a list of the items people typically own and you can easily add additional items that aren't listed to update your list at anytime. It also provides quality information and tips on how to best document all the items you own.
Once you have made your video and inventory list, you will want to make a copy of each and store them somewhere outside your house. If a disaster strikes destroying everything in your house, having your inventory documentation on your home computer only will be of little use when the honeowners insurance claim has to be made. A good place to keep this information would be in a bank safety deposit box with other important documents. You can also leave them with a relative that doesn't live with you if you don't mind letting them have access to that information. By taking a small amount of time now to inventory all the items you own will ensure that if the worst case scenario happens, you can quickly start to rebuild.
Homeowners Insurance - The Importance Of An Inventory
