Making a Home Inventory List for Insurance is Just Smart Defense
At some point, you'll have to think about getting some homeowner's insurance. Your mortgage company may require you to get it. On the other hand, you might want to invest in homeowner's insurance because you want to protect the items you own. Protecting yourself from a possible disaster is the smart way to live.
Before you search for the right insurance policy for your home, you have to consider what you want to protect. In other words, you'll want to create a home inventory list so that you know what you have inside your home and the value of each item. Here's some information on how insurance works and what you need to do to develop an accurate home inventory list to protect yourself.
How Insurance Works
We wanted to cover homeowner's insurance briefly in case you didn't know it insurance works. Generally, you will have to pay a monthly premium that will give you access to the protection that homeowner's insurance provides. In the event of a qualifying incident, your insurance company will pay for the repair of your home, replacement of your property, and other expenses for certain liabilities. The amount of coverage you have depends on what you choose, and that's why you should choose wisely. You'll want to get a policy valued at more than $100,000 if the value of your house is $100,000 exactly. An agent can talk to you about choosing a coverage amount that fits your current situation.
You may have to pay a deductible if something happens before the insurance company will pay out on your claim. That's another topic that you'd need to discuss with your insurance agent. Those are the basics of homeowner's insurance. It works the same as many other policies do.
What Insurance Covers
Your basic homeowner's insurance policy will cover four major areas: your dwelling, liability, personal property, and other structures. Liability is something that covers you if someone is hurt or suffers a loss while that person is spending time at your home. For example, if someone comes to visit you and trips on some toys that were lying on the ground. Your liability coverage will pay a portion of that person's medical bills if he or she experiences a severe injury. It will also cover that person's lost work wages. Furthermore, it may cover the legal expenses that you accrue when you go to court.
If someone gets robbed while that person is at your house, your homeowner's policy may cover the replacement of the stolen items. It may also do that if the person's property gets damaged due to a disaster at your home.
Dwelling coverage is what pays for the repair of damages to your home when unfortunate incidents occur. Some examples of occurrences that dwelling coverage includes are fires, windstorms, hail, and lightning.
Your personal property will also be protected by a good homeowner's insurance policy. The policy will replace or reimburse you for items such as furniture, electronics, and clothing.
Your policy may also cover some other structures that are not part of the main home. Those items might include sheds, fences, and detached garages. It's up to you to talk to an agent to determine which coverage plan is the best choice for you. You'll be glad you took the time to go over your options thoroughly.
How to Get Additional Coverage
You will have to speak to a specialist if you're interested in getting additional coverage for different things. For example, you can request coverage for vandalism, glass breaking, and so on. You can also change the amount of coverage for your personal items. This is one of the reasons that it's extremely important for you to make a home inventory list. This list will help you to place an overall value on all the items within your home that you might need to be replaced if an incident occurs. Make sure you take adequate time to do this. Incidents don't ever warn anyone that they're coming. They just occur.
Why Is Creating a Home Inventory List Smart?
Creating a home inventory list is a smart move for several reasons.
1. For one, it will let you know what you have inside your home. That way, you'll be able to tell if anyone has stolen anything. Many people move from home to home and don't even realize what they have. You don't want to be such a person.
2. The second reason that you need to create a home inventory list is for insurance purposes. You'll need to know the total value of all your personal items in case an incident occurs. You need to know this so that you'll make the right decision when you first apply for homeowner's insurance. Making the right decision from the beginning will ensure that you're covered.
3. Thirdly, you should have this list of items ready if you ever have to file a claim. You'll need to have your paperwork in order so that you can prove the value of your goods without having to take weeks to figure it out. You'll be one step ahead of the insurance company by creating your list now.
Information You Should Have on Your List
What you'll want to do is create a full inventory list, and you'll want to make it neat and legible. You may choose to use old-fashioned pen and paper, or you may want to walk around with a tablet and create an Excel sheet. Make the first column for the name of the item. Make the second column for the price of the item or its value. You can choose to enter the amount you actually paid for the item, or you can be more precise and enter what you think its value is now. Everything loses value over time unless it's a rare collector's item of some kind.
We recommend that you perform a complete walkthrough of your home and separate everything into different rooms. That would be the easiest way to create a home inventory list without driving yourself crazy. You can start in any room you like and finish in any room you like. It's completely up to you how you handle making your inventory list.
If you start in the bedroom, for example, you may want to begin with the larger items, such as the furniture and any entertainment systems or televisions you have in the room. Go through every crack and crevice of the room and write down everything that you own in there. Repeat the process for the rest of your rooms, notating the value of everything you see. You won't want to leave any stone unturned when you go through this process.
The point is to maximize your return if something unfavorable happens to your dwelling.
Gather all the receipts you might have in your home. It's best to keep as many proofs of purchase as you can find. The insurance company may or may not ask you for the proof, but it's a good idea to have it in front of you just in case you need it. That way, you can turn it in with any of the other claim documentation they request.
Items to Include in Your List
You'll want to include everything inside your home that the policy can cover. These items include:
- Clothing
Your clothing will be included in the list of personal items that your homeowner's insurance will cover. It will cover all articles of clothing such as shirts, pants, shoes, and any clothing accessories you have, as well. It doesn't matter if the clothes are old or new. If they are your personal items, they will count toward your claim. It's important to list your clothing on your home inventory list to know the value of your wardrobe. Don't skip any items because you'll want to have full coverage to repurchase all the items if an untimely event occurs.
- Electronics
The policy will cover your electronic items, as well. Electronic items are a broad category that can include a variety of items. It will include items such as cell phones, MP3 players, DVD players, radios, walkie-talkies, gaming systems, and more.
- Toys
Your insurance policy will likely cover your children's toys. You just have to make sure that you include them in your home inventory list and notate the toys' value.
- Furniture
All of your furniture can be covered in the homeowner's policy as well. You can include your couches, bedroom furniture, lights, tables, chairs, and the like. You can buy yourself a new set with the money you get from the insurance company.
- Kitchen Appliances
Your kitchen appliances will be covered under your policy. The list of kitchen appliances can include your microwave, stove, refrigerator, toaster, and any other equipment you have in your kitchen that you use for cooking. The policy may also cover all of your dishes and silverware. Make sure you keep a record of what you have, especially if you have fine china or rare silverware that holds high value. You may be able to obtain reimbursement for that silverware. It's better to be on the safe side and list it.
- Televisions and Entertainment Systems
Your televisions and entertainment will fall under your insurance policy, as well. Be accurate when you write down the cost of these items as you will want to replace them as soon as you can.
- Bicycles
If you have any bicycles in the home, you can claim those, as well. You most likely keep them in your garage or the entranceway to your home. Those are parts of the home, and thus, the items will be covered with the insurance.
- Equipment
You may be covered for certain equipment, as well. Examples of equipment that your policy may cover include gardening equipment, lawnmowers, and other equipment. The best move for you to make would be to ask the insurance agent if the items you have or are covered. The agent might be able to work something out for you.
What Homeowner's Insurance Doesn't Cover
There are a few personal items that your homeowner's policy may not automatically cover. You may have to pay for additional coverage for the items or request a special policy. You can bring this up with the agent when we connect you with one. These are a few of the items the policy may not cover for you:
high-priced items
Some homeowners insurance policies do not cover high-priced items such as jewelry and fine art. However, a provider may offer a special type of coverage or an add-on feature that will insure you for those items. You must talk to an insurance agent about it. Let the agent know that you have such items and tell that person the value of the items. He or she will let you know what they can do for you regarding those items.
your car
In most cases, you will be expected to contact your automobile insurance provider if something happens to your vehicle. However, there are some instances where your car may be covered by the homeowner's insurance policy. An example is if a fire or other incident occurs while your car is parked in the garage. The insurance company may consider the garage as part of your home and thus offer you protection to repair the damage to your car or replace it.
This is a tricky subject that you would be better off talking to an insurance agent about. Mention the specific scenario so that you can get a straight answer and base your coverage decisions on that.
How to Make Your List Legal?
At some point, you might want to legalize your inventory. It's a good-measure practice just in case you get into a legal battle over what you own. You can legalize the document by having it notarized. That's one way to make it more of an official document. You could also contact an attorney and get help to make it legal if you want to take a more formal approach.
How to Choose the Right Insurance to Cover Your List?
Add the value of all your individual items to come up with a total that you will need to request in insurance coverage. Be as precise as possible. Next, you'll need to consider the value of your home. Once you add the two figures together, you'll know what to tell your agent in terms of coverage. The rest of the process should be quite easy after that.
Reach Out to Us If You Need Help
You should now have a firm understanding of why you need to have a home inventory list and how your insurance works. You should also know how to create an inventory list and make it legally binding. Please let us know if you need any additional assistance from us.
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