Create an Inventory of Insured Items & Collect on Your Claim Faster

Preparing an inventory of your personal property may expedite an insurance carrier's processing of your claim.

A typical homeowner's policy includes different types of coverage including insurance for your residential or structural property. Homeowner's insurance also includes coverage for the personal property owned by you and your family members living with you. If your personal property suffers damage or destruction caused by a covered event, your insurance carrier will generally process your claim faster if you provide the carrier with an inventory of your belongings.

Instructions

Personal Property Coverage

1. Ensure your current homeowners policy includes coverage sufficient to repair or replace your personal property if your possessions suffer damage or ruination due to a covered event. Review the limits pertaining to your personal property identified in your homeowners contract and consult with your insurance carrier if you need to increase them.

   Homeowners insurance usually covers a policyholder’s personal property in an amount equaling between 40 percent and 70 percent of the value of the coverage extended to the person’s residence. If a policy insures an individual’s house for $200,000, for instance, his homeowners policy also covers his personal property up to an amount between $80,000 and $140,000. A standard homeowners policy only insures items of exceptional value such as jewelry and coin collections up to a total amount between $1,000 and $2,000. Discuss adding an endorsement or rider to your existing homeowners policy with your insurance carrier if you want to insure your collectibles for a higher amount.

2. Create an inventory of your personal belongings by preparing a written, itemized list of your possessions. Write down what is in each room of your house or categorize your possessions based on the purposes for which you use them. Create a pictorial inventory of your belongings by photographing or videotaping the personal property you and your family members keep in your home in addition to preparing a written list. Obtain an appraisal of a piece for which you added an endorsement or rider to your homeowners policy in addition to including the item in your inventory.

3. Create a file to store all receipts, warranties and owners’ manuals as proof you acquired items after completing your inventory and before a covered event damaged or destroyed them. Retain additional records such as canceled checks, bank statements and credit card statements as proof that you purchased items prior to the occurrence of a damaging event.

4. Store your ownership records in a fireproof safe or a safe deposit box. Consider giving a copy of your records to a trusted friend who lives offsite for safekeeping as well. Ensure your records remain intact and accessible in case your insurance carrier needs to review them when you file a claim against your homeowners policy.

References

• Insurance Information Institute: What Coverage Is Included in a Standard Homeowners Insurance Policy?
• Insure.com; Home Insurance Basics; January 2010
• Falk & Falk Law Firm; What Is Needed to Document "Proof of Ownership" for Common Household Items?; February 2011
• Maine Bureau of Insurance; Frequently Asked Questions -- Homeowners; September 2011
• Unity Adjustments: Public Insurance Adjuster Tip: Preparing Both Real and Personal Property Inventories
• "Entrepreneur"; Creating Proof of Ownership; Jacquelyn Lynn; May 2006