In the past several Blogs we looked at your responsibility to review your homeowner or renters personal property coverage and to be sure you understand all the limits and conditions. I have outlined the reasons you may want to verify that your policy insures for the replacement cost and not the actual cash value. Most of all you should understand that in the event of a covered loss you will need to provide detailed lists and proof you own the property you claim.
Many people, get a renters or homeowner insurance policy and assume everything they have is now protected from a covered loss. What they forget is that even if they own an insurance policy they will still need to prove their losses and the value of what was lost if there is ever a time when a claim is made. Making a household inventory can be as simply or as complex as you want to make it. Simple may be a list with some details such as what the property is, when you acquired it, and how much you paid. But, if you own a lot of personal property or anything of special value you may want to have a more complex way to document your personal property.
I always advise starting with the personal property that you own, which have limits under your policy. These items are often the most expensive and sometimes the things people collect most often. Jewelry, art, computer equipment. This is the information you want to document:
- Detailed description
- Serial Numbers if any
- Appraisals
- Receipts
- Photographs
Gather all the important information and total the value of these special items. Some insurance policies may only cover a total of $500.00 for jewelry and if you own $40,000.00 of jewelry then you will need to have the additional property added by an endorsement or purchase a floater to cover the extra items and their value.
Once you have documented these special personal property items, and documented their value I advise that you send a copy to your insurance agent along with a letter requesting that insurance options for any additional coverage you may need be offered. Doing this puts your agent on notice that you have these items, and want insurance for them. Keep a record of this letter with your household inventory.
The next Blog will cover documenting your personal property inventory and some of the ways to be sure you can find it in the event of an insured loss.
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Related Blogs:
- Household Inventory–Getting Started.
- Household Inventory–At Least Make A List.
- Is Your Personal Property Insured For Replacement Value?
- Insurance Appraisals
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