Though it is unpleasant to think about, there are many disasters that could happen to your home. No home is 100 percent safe from theft, fires, floods, tornadoes, and hurricanes. In the event of a natural or man-made disaster that ravaged your home, could you list all of your belongings off the top of your head? Most people cannot. That’s why it is important to make an inventory list of your personal property. If a disaster occurs and you need to file a claim against your home owner insurance policy, this list will come in handy because most Dallas insurance companies require you to demonstrate your loss with as much detail as possible.
What Is a Home Inventory List?
A home inventory list includes detailed descriptions and photos or videos of the personal property in and around your home. A home inventory list is vital for documenting an insurance claim. The list can also be useful for financial and estate planning because it can help ensure your belongings and assets are distributed according to your wishes. The type of coverage you have is described as part of the personal property insurance definition in your policy. When you file a claim, you will have to give your insurance company a list of everything that has been damaged, stolen, or destroyed because the burden of proof lies with the homeowner. If you have proper documentation, your claims process will go much smoother and faster. You will also maximize your reimbursement if you have documented proof of all your personal property.
Advantages of a Home Inventory List
If you know the value of all of your personal property, it is easier to determine how much insurance coverage you should have. Many homeowners try to ballpark this number when getting a new policy because they haven’t taken the time to make an inventory list. Your home inventory list helps identify items that have limited coverage, such as coins, jewelry, antiques, silverware, and artwork. You may need to purchase a rider, which is additional coverage, so the full value of the items can be insured. The list also helps you evaluate and determine if you should choose replacement cost or actual cash value for your insurance. Replacement cost is the amount of money you need to repair or replace property with items of similar quality. Actual cash value is a lower amount because it subtracts depreciation from your replacement cost.
What to Include in Your List
A home inventory list should include a description, serial number, model, purchase date, cost, manufacturer, estimated replacement value, and an heir designation of every item. Accompanying photos or videos should be included. If you have receipts or other important documents related to your property, scan and include them with your list. Compiling your home inventory list can be time-consuming. Many homeowners do it themselves, while others hire reputable inventory specialists who have the skills and experience with Dallas insurance companies to complete the job quickly. Either route you take, you need to be sure to keep your completed list safe and secure away from your home or using cloud-based storage. If you are looking for a home owner insurance policy, contact us. Our Dallas, TX, agents can help you set up the best policy for your needs.