Imagine trying to make a list of your property after you are hit by a storm, fire or even burglarized. Most people think that having insurance is enough. But it’s not! Insurance companies can only pay you for losses on property that you can prove you had! Would you be able to and not miss anything of importance?
People tend to think, oh that will never happen to me but the truth is it happens to people everyday. Insurance companies, agents, financial and estate planners highly recommend a through documentation of your home’s belongings to ensure your financial protection in the future. You need to remember that it is your responsibility to prove damage or loss if you are ever affected.
Insurance companies recommend keeping an inventory for the most obvious reasons; storm, fire or burglary. Keeping an inventory makes the process go smoother if you ever need to file a claim. An inventory is also beneficial in determining the value of your belongings, which would help you decide on your insurance needs. Financial and estate planners can use this information to help determine your net worth and would help in creation of a will. Another reason to keep a home inventory is when you move in the event you need to prove damage or theft.
Creating a home inventory can be done a few different ways. You can make a list of all your possessions on paper, including brand name, color and serial or model number depending on the item. You can also create it on a computer database and then store it on a CD, take photos or even video. The best is to have a combination of written records, video and digital photos of your property.
Once you have completed a home inventory you need to make sure you keep it in a safe place, such as a safe deposit box, but do not keep it at your home. It is also best to update your records annually to keep track of any new additions or deletions.