If you lost all of your personal belongings in a fire or another catastrophe, you likely wouldn’t be able to recall all of them from memory. You can test that assumption by closing your eyes right now and listing all your valuable belongings in each room of your house. Even if you manage to get 80% right, you left 20% out, and you haven’t answered an even bigger question: What is it all worth?
Replacement cost is a blessing
Unless you have the most basic coverage through your homeowners policy, you should have replacement cost for personal property. Not sure? Read your policy to confirm.
Replacement cost is an insurance term that guarantees your property will be replaced by something brand-new of equivalent quality and value. Old computer? New computer. Old fridge? New fridge. No depreciation is calculated on what you own, because if you lost it all, you probably couldn’t afford to replace it all. That would go against the very principle of insurance, which is to set you right after a catastrophic loss.
The impact of home insurance fraud
Home insurance fraud is a fact. So many people have used and abused the “My Roku 50-inch TV has been stolen” line that insurers proceed with the utmost caution when dealing with these kinds of claims. You won’t run into the same problem if your home is destroyed in a fire, but then who’s to say you had a 50-inch Roku TV if you can’t prove it?
You want to document everything of value with photos, along with a record indicating:
- What the item is
- Identification (serial) numbers
- The price paid
- The date of purchase
- A copy of the receipt
With all this in hand, your claim will be settled in record time. Don’t leave this information in your home. Instead, store it securely in another location.
A picture tells a thousand words
Pictures are factual, and they can help you organize your inventory. Work systematically, from room to room, taking a 360-degree picture of the room with the major furniture and appliances in place.
Collections
Silverware, baseball cards, coins or other paraphernalia, you’ll need to document them extensively. You can purchase riders specifically to cover your collectibles. We can review your inventory to ensure you are adequately covered for their entire value.
There are limits to other items in your home that you might not be aware of. Read your policy to understand what those limits are. They include computers, antiques, furs, jewellery, sports equipment and more.
Remember to time stamp your photos
The adjuster knows when you did your inventory, and store the pictures in a safe place.
Take the guesswork out of your claim.
You’ll have more than enough to deal with if you experience a major loss, so it pays to be prepared.
