After the home inspection passes with flying colors and you begin enjoying your new home worry-free, the last thing you would expect is to file an insurance claim. Sadly, this is not always the case, and preparation is important.
A home inventory is essential to safeguard your belongings if you ever have to file a homeowners insurance claim.
The home inventory process
If someone asked you if you could you list your belongings, could you? An accurate house inventory helps speed up the claims process when filing for insurance. It is difficult to know where to begin, but the Insurance Information Institute (III) offers some useful advice on how to go about conducting a home inventory. Here are some other tips that we thought may help your home inventory go more smoothly.
- Go room by room: If you do not do your home inventory room by room, you are likely to miss important items that should be included in a home inventory. Find an easy place to start – a small space is a great place to start, whether it’s your kitchen drawers, your sports gear closet, or your purse shelf.
- Keep your receipts and store them online: You won’t be able to prove the value of your personal items unless you can provide a receipt showing how much you paid. Also, you should back up (keep a copy) of the receipts in an online storage platform with easy access, such as an external storage drive.
- Organize by category: Some people prefer to organize valuable items for home inventory by category; for example, artwork, jewelry, electronics, collections, furniture, etc.
- Know the current value of your items: If you are unsure of the value of your expensive items, have an appraisal done so you will be able to prove the current market value. This is important for insurance purposes; for example, if you have replacement value coverage for personal items with your homeowners insurance policy.
Tips for filing a homeowners insurance claim
Insurance claim filing can be a nerve-wracking experience for those who have never done it before. But, whether or not an insurance claim is approved depends on if the claim is filed accurately. If you’ve suffered a loss like theft or a house fire, filing a claim as soon as possible will help speed up the claims process. It’s essential that you receive your funds as soon as possible so that you can perform any necessary repairs or replacements.
- If a crime was involved, file a police report. If your loss was due to theft or vandalism, you should report it to the police. Your insurance company will also want to see a copy of the police report when you file a claim.
- Document the damage. Whether you use a phone app where you can upload pictures or video the damage, it is important that you accurately document the damage.
- Report your claim as soon as possible. Contact your insurance company and report the claim as soon as possible. Be sure the adjustor has your contact information in case he has any questions or needs to schedule an inspection to review the damage.
Once you’ve filed the claim with your insurance company and it is approved, the insurance company will pay your claim, usually with a check, electronic funds, or they may pay a third party directly to repair your damaged items.
Stay safe and prepared
We hope you won’t have to file a homeowners insurance claim anytime soon. However, if the unexpected happens, it’s best to be prepared. An up-to-date home inventory will help you settle your insurance claim faster.
Remember that your home inventory is only useful if it is correct. You can use it to give your insurance company information in case of a fire, theft, or another disaster that causes damage. No matter how you made your list, make sure to back it up and keep it somewhere safe.
