A home inventory is an itemized list of all personal belongings with receipts, serial numbers, descriptions, and financial value. It is particularly helpful for insurance companies to determine the amount of covered damage and worth of replacement.
Several applications are designed to create home inventories with ease. Write your home inventory by creating a pattern that makes it easy to list all your items from old to new or cheapest to most expensive. You can also group your belongings into categories such as by room, by hobby, or by importance.
Here are some reasons why a home inventory is important for your insurance policy.
1. It helps determine your coverage needs
Keeping a full list of all your belongings will help open your eyes to see what exactly you need protection for in your home. It lets you have a detailed and productive conversation with your insurance provider when making decisions about homeowners or renters insurance coverage. When you know all your coverage needs, you will be able to select the right policy for your specific situation. This way you can easily identify new developments and changes that require you to call your provider.
2. It makes your insurance claim fast and simple
You need a home inventory to help expedite your insurance claim because you won’t have to spend time trying to create an inventory after the damage has been done. It speeds up the process for the insurer and the insured and ensures that compensation is granted in little to no time. A home inventory lets you maximize your claim payment because it limits the possibility of forgetting any of your damaged possessions.
3. It allows you to reevaluate your personal items
Making a list of all your possessions from cheapest to most expensive helps you make informed decisions on your policies. Most home insurance does not cover valuables such as precious stone jewelry. Aside from jewelry, high-quality furniture, and electronics that are expensive to replace may be exempted from the policy. These valuables often require additional coverage as a scheduled personal property endorsement.
4. It allows you to estimate financial losses for tax purposes or when applying for financial assistance
After a disastrous incident takes place, the only way to know if you qualify for a tax break or disaster assistance is to properly estimate your financial losses. A well-itemized home inventory may be a useful tool to speed up the process. Damages caused by disasters run into thousands if not millions worth in losses, and the only saving grace maybe if you already have a full list of your belongings and their values.
With technological advancements, home inventories are much easier to create. Besides the traditional method of keeping a book of records, you can save all the details on your mobile device. Documents, pictures, and videos are acceptable forms of keeping a home inventory and a fail-safe way to guarantee that they do not get lost or missing.
Do you have additional questions about your home coverage? If so, then contact the experts at Patterson & Associates in Richardson, Texas. We are ready to assist you with all your homeowners insurance needs today.