Homeowners Insurance covers your property damage and will compensate for any property lost, but they request that you require proof of ownership for the item. How do you prove ownership if you no longer have the item? What if you threw away the receipt or anything that would provide proof? Well, in that case, you are at a loss, but luckily, if you have not experienced theft or damage yet, you can start preparing for it by taking inventory of your property today.
Taking inventory is the process of providing a listing of what you own. This can be done through pictures and details or through a video tour of your property. This should be done periodically through the year, or you can simply add a new insert every time you gain a new piece of property. If an accident or theft were to occur, this listing would help you get reimbursed for the damages or stolen property and provide the cash to replace your property it.
To start out, you should sit down and begin to list out what you own. If you do this on a word document, you can later go back and add pictures of the item. Put a brief description of the item, where you bought it, and the make and model. This will help you and the insurance company be able to quickly identify what exactly is missing or damaged from the incident.
Courtesy of frugal living
You might be already getting overwhelmed as you are reading this. You probably have a lot of stuff like most Americans. Take a breath. It is okay. Take the process in chunks. Start with your most valuable items and work backwards. Trying to tap everything out in a day, but take the time to do it right the first time and get it to look how you want it to.
After you spend the time making the inventory list, make sure to keep it some where safe. A fireproof filing cabinet is ideal if you are choosing to keep it in the house in case the incident destroys your house as well. If you do not have a fireproof safe, consider keeping a copy on site and off site so if an incident were to occur, you would still have a copy available.
It is considered to be over half of Americans do not take inventory of their property, but when an incident does occur, the homeowner still expects their insurance to cover the property damage. The insurance has every right at this point to deny them without proof of ownership. Get ahead of the game and prepare yourself for the worst. Take inventory of your possessions so when tragedy strikes you will be ready and covered.