Tips for Taking an Inventory
Many people don’t like thinking about the possibility of a flood, fire, theft, or storm damage. But if such a thing happens, then you have to provide the insurance company with a detailed list of your belongings so you can be reimbursed for damaged or lost items. If you don’t have the home inventory, you have to piece it together from your memory. When a disaster happens, are you sure that your memory is going to remember everything that you might have lost and its worth? You are most likely going to get less compensation than you deserve.
It is a good idea to make an inventory now so you can have peace of mind knowing that your personal property is protected. Inventory clerks will handle all of your inventory needs. Below are some questions you might have and answers. You will know how to get it done.
Do You Need a Home Inventory?
It is easy to remember large items like the big clock in the living room and a big-screen TV, but can you remember every piece of jewelry in your jewelry box without having to look at it. If you were asked to list everything after property crime or a natural disaster, you will most likely leave out a couple of valuables. You cannot make additional claims to the insurance company once you have accepted your reimbursement.
A home inventory is very important when it comes to filing a claim because it reflects the value of your property. It can also help you when you want to obtain more insurance coverage. If you have original art, the value of that collection might be more than the coverage limit. With a home inventory, you have something that is going to serve as evidence of the value of the collection, and this why you can get an insurance policy that is going to provide you with a higher policy that covers the reimbursement value of your art.
What Should You Include in Your Home Inventory?
When you see that the renters’ or homeowners’ insurance policy lists that your maximum coverage amount for your belongings, it doesn’t mean you are going to get that amount. How much you get is going to depend on proving what your own. You have to list your appliances, jewelry, electronics, and other valuables and also provide a brief description of each item including the model and/or serial numbers. You also have to include the estimated value of the items. Your inventory should include the receipt because it establishes value. (for those who file original receipts with income tax papers, it is important to keep a copy with the inventory). Include a photo of each item listed in your inventory.
When Should You Compile Your Inventory?
The best time to create and update a home inventory is in January. This is when the excitement of the holidays has cooled down and you can still find receipts from your purchases – many people make purchases between Black Friday and Christmas. Make it a habit to update your home inventory every year, so you can be protected in the event of a disaster.
What Format Should be Used?
The traditional method that has been used to create a home inventory is listing all belongings, then supplementing with videos, photos, receipts, and valuations. If you do this, then it might not be the best idea to keep it in your home because it can be stolen or destroyed. This is why you should consider keeping it outside your home in a safety deposit box. A waterproof, fireproof home safe can help protect your inventory during a disaster, but you are out of luck if the safe is stolen.
Technology has provided an easier way of compiling and storing your home inventory. Mobile apps like Sortly have made it easier for people to make and store a home inventory. You record the serial number, photo of the items, purchase date, and a description of every item. You can store your home inventory on a Cloud-based file like Dropbox. Depending on the insurance company, you can be provided with an insurer-specific app. Major insurance companies like Allstate and American Family have their own apps. Check with your insurance agent to see if they have a home inventory app.
What Is The Best Way of Taking Inventory?
A rule you need to keep in mind when it comes to a home inventory is; if it is in your home, it has value. When making a home inventory, the best approach is to go room by room and note down all the belongings you have in there. If you include a paper copy, then consider using a home inventory form, which is usually provided by most insurance companies. You can ask your insurer to provide you with a free form.
Go to one side of the room then start there until you are done with every item in the room. Make sure you have documented every item.
There is no need to include short-term supplies and perishable food items. Some of these short-term supplies include paper, pencils, rubber bands, and any other items that you are going to use up soon.
Take a photo of each wall in the room for the purpose of item location.
Take many photos of expensive items like computers, and try to take close photos of the model numbers and serial numbers.
Open your closets and drawers and document the contents.
Go through your jewelry boxes and bookcases.
Take close photos of your receipts, or keep them with the home inventory.
If you don’t have the receipts, note down the year you purchased the item and the original cost.
Make sure you remember household items like pans, pots, and dinnerware because people tend to overlook them. In case of a fire, these items are going to be damaged and have to be replaced.
Items not in your home count too. If you have a storage locker, document what is inside it too.
Videos are great for supplementing your inventory. Take videos for each room, describing the items in the room. While a video is not that important since you have already documented every item, it is going to help you when making a claim.
Make sure you do it slowly to avoid getting overwhelmed. The entire process might take you just one weekend.
When Should You Update Your Home Inventory?
Keep receipts when you make a major purchase then update your home inventory once a year. The best time to do that is the start of the year. If you have moved items in the room, update the photos too. Record new purchases and gifts. If you find that the estimated value of your home inventory is more than the maximum allowable amount, then you should talk to your insurer so they can update your policy to reflect the new value of your belongings.
