Most of us, whether we are home owners or renters, carry some sort of homeowner’s insurance to cover against loss or damage of our possessions. But have you ever really taken inventory of what you own and determined just how much of an investment you have versus the coverage you buy in your policy? If you’ve never done this, I think you may be in for a huge surprise as to just how much your clothes, furniture, appliances, electronics, etc. are really worth. And keep in mind that if you ever have to make a major claim in the event of loss or damage, your claim will be greatly faciliated in the event of a disaster if you have detailed records you can provide to your insurance company.
A home inventory will enable you to file a claim more quickly and speed up the claim processing, but it will also help you identify property recovered after a burglary and to write off losses on your federal income taxes! And by the way, if you ever move this list is great for insuring your contents with the mover and providing proof in the event of loss or damage during the move.
Your insurance agent can provide suggestions on how best to set up a home inventory, as well as advice about what information and details your insurance company will want in the event a claim is filed. Keep in mind that different insurers have different formulas for calculating value on a claim. You should ask your agent/broker what your insurer uses as a formula.
Here’s what you need to start making a home inventory:
- Printable checklists or forms.
- A pen.
- Receipts or other documentation of major purchases.
- Any appraisals for any of your belongings.
- Photos or videos clearly identifying your belongings.
This might feel like an insurmountable project, but if you go room by room identifying everything, you’ll have your list before you know it!
For “big-ticket” items, you will want to always record the following information:
- Date/year/place item was purchased
- Quantity of items
- Serial and/or model number
- Cost of the item when purchased (good idea to save your receipts)
- Current value or replacement cost of an item
- Detailed description of items (if you can’t take a photograph or video)
And don’t forget to update your list at least annually and whenever you acquire something major and expensive. You can also look into insuring such items individually.
Keep a copy of your list somewhere other than in your home in the event of a major disaster such as flood, fire, etc.
Want more help? Contact Carolinas Realty Partners anytime!
Carolinas Realty Partners in the Charlotte metro area are pleased to offer our special Real Estate CyberTips E-Newsletter, which in very concise form, provides you with monthly Cyber tips and tricks, along with our pointers to Internet places of special interest. This eNewsletter is specially designed for anyone in the market for a home, thinking about selling a home, or just interested in homeowner issues in general.
