Homeowner’s Insurance helps pay for the repair or replacement of your home and/or your personal belongings if they are damaged by fire, theft, or other perils.
So, let’s try a little exercise: List everything you own from memory. Go!
Easy, peasy, right? Probably not.
Why should I complete a home inventory?
The fact is most people own more things than they realize. It’s easy to remember the cars, the computer, the TV. But what about that holiday china in the garage? Or every pair of shoes?
All of it is regarded as personal property for insurance purposes. And if your home is destroyed by fire or some other disaster, having a list of your possessions makes filing a claim easier — and helps you put your life back together more quickly.
Plus, comparing the value of your belongings to the “contents” limit listed in your policy also helps you make sure you have enough insurance to replace your belongings if they are lost, stolen, or destroyed as a result of a covered loss.
What’s the best way?
The easiest way to take an inventory is to use a video camera, recording, and describing items as you walk through your house. Or, you can use a regular camera and create a home inventory checklist.
Here are a few tips for completing and storing your inventory:
- Add brand names and descriptions where you can, especially on large-ticket items. Serial numbers are helpful to note.
- Keep any receipts you have with the list to make the claims process easier.
- Store your video or photo inventory offsite, so you won’t lose it if your house is damaged.
- Update your personal property records when you purchase new furnishings and valuables.
One poll revealed that about 50% of homeowners had taken a home inventory. Though the task may seem daunting, it’s important to try. An incomplete inventory is better than nothing at all.
How much insurance do I need?
Berkshire Insurance Services can assist you in analyzing your insurance needs and help you decide how to protect your personal property most effectively.
One thing to consider is that a standard policy typically covers personal property only up to its actual cash value, determined by taking the replacement cost and deducting depreciation, which can be substantial. (For example, a 5-year-old TV is usually worth much less than what it would cost to purchase a new one.) Therefore, you should consider full-value coverage, which will pay for the replacement value of your personal belongings.
Finally, remember your homeowner’s policy covers valuable items such as jewelry, furs, art, and antiques, only up to set dollar amounts. If the cost of replacing them exceeds these limits, you may want to purchase scheduled personal property coverage.
The Insurance Information Institute has a FREE app – Know Your Stuff – that can help you create your inventory.
We hope you’ll never need the home inventory, but preparing for the worst can prevent a lot of hassle later!
Do you have any questions about your current insurance coverage? Give us a call at (610) 413-9880 or visit our website at www.berkshireinsuranceservices.com. We’ll be happy to review your insurance policies to ensure that you have the right coverage at the best price.
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