Create a home inventory that contains lists, photographs, or a videotape of the contents of your home before a tragedy strikes, and you are faced with a loss. After all, if they were hit by a fire, tornado, hurricane, or another natural disaster, would you be able to recall all the possessions you've acquired over the years? Getting an up-to-date home inventory would help you settle your insurance claim quicker, review your income tax return for damages, and help you buy the right amount of insurance.
More than half of Americans do not have a home inventory of their belongings, placing them at risk of insufficient home insurance coverage, according to a survey from the National Association of Insurance Commissioners (NAIC), should extreme weather hit.
Nearly half (44%) of homeowners have a home inventory, and most (54%) have checked or revised it over the past year.
In more than five years, one in 10 homeowners has not checked or revised their homeowner insurance policy.
Millennials are more likely to have their insurance policy reviewed/updated in the last five years, to have a home inventory, and to have their inventory reviewed/updated in the last five years.
Gen X (15%) and baby boomers (15%) are slightly more likely to have revised or changed their policy more than five years ago than millennials (4%)
Start by listing your possessions, identifying each item, and noting where you purchased it and its make and model. Clip any sales receipts, purchase contracts, and appraisals into your list.
Photos and videos provide convenient ways of recording your things. Free home inventory applications are sold by most insurers. Ask your insurance agent about home inventory applications that they offer to help eliminate the guesswork by walking you through each room by creating evidence lists and enabling you to download and add videos, images, receipts, and appraisals. This also helps you to store documents and back-up and to simplify the filing of claims.
Register their serial numbers, typically located on the back or bottom of major appliances and electronic equipment.
For clothes, for example, count the items you own by category of trousers, jackets, shoes - make notes about those that are extremely important.
Don't be bothered: Starting an inventory list can be reasonably easy if you are just setting up a household. However, the job of making a list can be overwhelming if you've been living in the same house for many years. Even, having an incomplete inventory is better than none at all. Start with recent acquisitions and then try to recall what you can do about older possessions.
Big-ticket items: Since you purchased them, expensive items such as jewelry, artwork, and collectibles may have increased in value. To make sure that you have sufficient protection for these things, consult with your insurer. They will need to be separately insured.
Take a picture: You can take pictures of rooms and significant individual things in addition to the list. Notice what is shown on the back of the images, where you purchased each item and the makeup. Stuff that are in closets or drawers, don't forget.
Also Read: How Much Does Renters Insurance Cost?
Take A Video: Walkthrough a video and explain the contents of your house or apartment.
Using technology: To make your inventory list, use software or your computer. Personal finance software packages often include a room-by-room inventory program for homeowners. Check what technology they provide for your insurance company. A general inventory checklist and My Home App are available from the National Association of Insurance Commissioners.
Keeping the list, images, and video files: Regardless of how you do it, written list, photos, video, applications, or computer software, keep your inventory and receipts away from premises, cloud, back-up, or email to family or friends in a secure location. That way, if your home is destroyed, you will be sure you will have enough to send to your insurance representative. Apply the data to your inventory when you make a big purchase while the specifics are fresh in your mind.
By category, or by room, you can list your items. You may make a general estimation of how much you have for many things like books, food, bedsheets, or pots and pans. Note the make and model for expensive goods, the shop where the item was bought, and the estimated date.
If you are trying to cover the welfare and care expenses of your pet, purchase a pet insurance policy in addition to your renter's policy. Consider having a canine insurance policy if you have a "dangerous" dog breed.
In 2019, the average cost of insurance for renters ranged from $10 to $23 per month. Insurance premiums for tenants are pretty cheap and usually won't differ as much as home insurance rates. If you package or bundle renters insurance with your auto policy, you can qualify for a discount.