Taking Inventories: There’s No Such Thing As Too Much Information
This may be unpleasant, but for one moment, picture this worst-case scenario. Your home has been completely destroyed. You are devastated, of course. Luckily, your homeowner insurance policy will compensate you for your financial losses. But first you have to file a claim reporting exactly what has been destroyed. Difficult under the best of circumstances, providing such a list can be impossible following the emotional difficulty of such a huge disaster.
That’s why, as a general precaution, you should prepare a detailed document listing all the personal property you keep in your home, as well as anything that resides in outlying buildings like garages or garden sheds. Your list should name everything of value, including furniture, clothing, toys, jewelry, computers, electronic equipment, artwork, antiques, sports gear, appliances, tools, and kitchen equipment. This document is called a home inventory, and it will be of invaluable importance should you ever need to document your losses.
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If you ever need to file a claim, your insurance company will require you to give a description and actual cash value of your lost items. Therefore, when taking an inventory, you should document all this information. Your inventory should include copies of receipts (showing date of purchase and original value) as well as the serial number, quantity, value, and manufacturer of each item. Be specific!
Don’t list that your home contains two stereo systems.
Describe the stereos, noting the manufacturer and any auxiliary equipment (such as new speakers) you purchased. Don’t forget everything in your closets, attic, and basement. Take time-stamped photographs of your possessions and add them to your inventory or videotape the contents of your home.
You might feel silly doing it, but you’ll be glad you did if you ever need to show the inventory to your insurance company. The more thorough your inventory, the more likely your insurance company will reimburse you for the full value of your belongings. Once your inventory is complete, make a copy for a trusted friend and leave one in a safe deposit box. That way the inventory will survive even if your home is destroyed.
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