Home Inventory

Whether you live in a mansion or a mobile home, having a complete inventory of your home is important. Not only will you know what you have and where it is, you'll have the insurance records you need should a disaster strike.

Imagine you’ve lost your home or valuable belongings to a disaster such as a fire, burglary or theft. Can you account for all your belongings? Insurance companies require that you document your loss and police reports require serial numbers and other vital information for tracking your stolen property. Insurance claims can be processed much faster if you have everything documented. A complete, accurate, and up to date home inventory is one of the most important things you can do to protect your assets. Also, a completed, detailed home inventory will help you to determine if you have enough coverage on your current policy. For example, most homeowners only carry $2,500.00 in jewelry coverage, and the average amount of jewelry in a home is over $5,000.00. In the event of a loss the homeowner would lose the difference.

Most homeowners do not realize the importance or the uses of a home inventory. Most people think that insurance is all that they need to protect their belongings. That is simply not true! Insurance companies require you to prove that a loss occurred. They will not just “take your word for it.” You must have written proof of your homes contents.

Even if you're a renter, a home inventory goes a long way toward making sure all your personal items are adequately insured if a disaster occurs. Renters sometimes misjudge the value of their belongings. They think that just because they have an apartment, that they couldn't possibly have $20,000 worth of things to insure. But after doing an inventory, they find out that they really underestimate the amount of things they have and coverage they need.

We aren't talking about inventorying smaller-priced things like compact discs. What we're talking about are larger, more expensive items that aren't always so easy to replace. That includes items like antiques, gold and silver, jewelry, furs, collectibles, power tools, electronics and cameras. And don't overlook calculators, lawnmowers, musical instruments, typewriters and vacuum cleaners.

High dollar amount items will bump up the amount of coverage you need for your belongings. It can be hard to add up everything and sometimes people just don't understand how much things are worth.

An inventory can be used for many things other than insurance purposes. It can be used for Wills, Trusts, Estate planning, Prenuptial agreements, Divorce and many other things.

Statistics from the National Insurance Industry show that less than 20% of homeowners have an updated home inventory record, but those homeowners typically collect more when submitting an insurance claim.

Did you know?

Statistics from the National Crime Industry show that over 6,000,000 burglaries occur each year in American homes, that's one every 10 seconds. The typical burglar will spend less than 5 minutes in a home and knows what to take before most home alarm companies ever act.

Statistics from the National Fire Protection Agency show that 74% of all structure fires occur in residential properties. The loss figures total in 1999 was $5,092,000,000, a 16% increase over 1998. However, the numbers of fires did not change that much, but the dollars lost did due to the increase value of our personal property at home.

Don't Let One Disaster...
...Turn Into Another

FACT: U.S. Crime Bureau statistics report that every ten seconds an American home is burglarized.

With over 6 million burglaries occurring every year, it just doesn't happen to other people, it may happen to you!

FACT: The Insurance Information Institute studies indicate that every sixty seconds a house burns. Sixty homes burn every hour, that's over 1000 house fires each day in the United States.

Next to dealing with the emotional sense of loss or violation after a burglary, fire or other disaster, the agonizing time spent in remembering what is missing may be the hardest part of all. Before a disaster strikes, you can eliminate this stressful time and make the insurance filing process much easier.

Why have a complete written, video and digital photographic record of your home and contents?

Insurance companies generally try to be helpful and cooperative in paying a claim, but they do not come to you with a blank check. Your responsibility is to prove what you say you have lost; and having a photographic and written record of these items will certainly help to process the claim faster and, in the case of theft, can be used to identify those items when they are found.

All insurance companies will require you to prepare an inventory of your property and provide records and documents of your lost property, including bills and receipts that justify the figures for your claim. A written and photo documentation will be very strong evidence to support your claim.

Dealing with the results of a fire or theft in your home can be a very emotional time. The stress of recovering what you lost can be a nightmare. A Home Inventory can be a very valuable tool between a homeowner and the insurance company, police departments, banks and estate planners.

"It won't happen to me!" "I know I should do it, but I'll do it later." No one plans on fire or theft, but it can happen to you. Trying to recall or prove your home inventory after an incident could be very costly. According to the Insurance Information Institute, the more documentation you have regarding your possessions, the better your insurance company will be able to handle your claim. Your claim will be processed quicker and you are more likely to collect in full.

Many people may have cherished missing property just sitting in the evidence room of police departments because no one claimed those items or the police couldn't identify the owner. It can be very difficult to explain exactly what your ring looks like or that special painting, your collection of dolls, family heirlooms, china, etc.? Having a video and digital photographic record to give to police will help keep your cherished possessions out of that evidence locker and back in your home where it belongs.

Also, a complete home inventory is an excellent estate-planning tool. A video, digital and written record of your property can provide a smooth transition of your estate. A home inventory, as a compliment to your present arrangements, can help insure that what you want to happen will happen.

If a disaster struck your home, would you be able to report exactly what you lost to the police or your insurance company? If you've kept an up-to-date home inventory list, your insurance company will be able to start working on a settlement right away so that you can begin putting the pieces of your life back together.

Don't be put off!

If you are just setting up a household, starting an inventory list can be relatively simple. If you’ve been living in the same house for many years, however, the task of creating a list can be daunting. Still, it’s better to have an incomplete inventory than nothing at all. Start with recent purchases and then try to remember what you can about older possessions.

It's simple to do. Just go through every room of your home or apartment and make a list of all your personal property, including furniture, clothing, bedding, and jewelry. Be sure to write the date you bought each item, if you know it, and how much you paid. It's also a good idea to supplement your inventory with photos or videotape. When you've completed your inventory, make copies and put the original in a safe place away from your home, such as a safety deposit box.

Of course, taking a household inventory without maintaining your homeowners insurance policy won't do you much good if you experience a loss. So, contact your insurance company if you have any questions about your policy or need to update it. Also, ask your agent about obtaining replacement cost coverage on contents, since this provision allows you to receive the entire cost for replacing lost items, regardless of depreciation.

The Insurance Information Institute reports that an up-to-date inventory of your personal belongings can help identify what was lost and settle your insurance claim quickly.

2. Note serial numbers (usually found on the bottom or the back of major appliances), purchase prices, present value and dates of purchase where possible.

4. To back up your written inventory, photograph each wall with closet or cabinet doors open. On the back of each picture, write the date, the general location and contents shown.

6. Keep copies of inventory and negatives of photographs at home for inventory updates. Remember, the more thorough your inventory, the more valuable it will be to you in case of a loss.

7. Be sure to update your inventory packet every four to six months. In the meantime, save receipts for any new items you'll need to add. If you make a major purchase, update your inventory as soon as possible. And remember to delete items you no longer have.

Take the time to review your policy coverage’s with your agent or broker. It's also important to shop your insurance premium and coverage’s to see if you have the best available... Compare your home insurance coverage.

Too many people find out after a loss that they should have increased their coverage amounts or purchased replacement cost coverage. Use your inventory to help you avoid this common mistake.

Add up all of your current estimated values to find out how much it will cost to replace everything, then compare this figure with your policy's personal property limit. This will be a good indicator of whether or not you need to increase your coverage.

Insurance policies place special limits on valuable personal property, such as jewelry, silverware, artwork, tools, and special collections like stamps and coins, and firearms. If you own these items, check the limits in your policy. If they're not high enough, you may need to purchase a scheduled personal property endorsement. This is an addition to your policy that will increase your insurance limits on these items.

It's a good idea to have valuable items appraised on a regular basis and to keep your appraisals with your inventory.

Home Insurance is available in all 50 states. The home may be a single-family owner occupied dwelling (home), condo or town home. Insurance may provide dwelling fire coverage, contents - personal property, loss of use, separate structures such as a detached garage or shed, premise medical and premise liability insurance. Additional coverage is available for jewelry, guns, stamp collections, china, picture or paintings and much more.

Natural disasters are not the only reason why individuals need video inventories. Theft, vandalism and fire are three other common reasons for video inventories. Also, video inventories are not just for individual's homes. Businesses and other insured buildings can also fall prey to acts of God, and especially to vandalism and theft.

Insurance Agents/Adjusters need visual documentation. In all likelihood, your agent/adjuster is required by the various insurance companies they work with to submit some sort of visual documentation to the insurance company when writing a policy or processing a claim, even if it's only a Polaroid of the outside of a newly-insured dwelling.

Start with the basics; a camcorder. Any high quality model will work. If you don't already have one, you will have to equip your camera with a wide-angle lens. A wide-angle lens is necessary to record shots of the entire room and all its' contents. This is a simple screw-on attachment that normally sells for around $50, and is usually available where camcorders are sold.

You may need a couple of good-quality blank videocassettes; a hand-held microphone with accompanying audio cables (the best inventory videos are narrated, usually by the owner), or you can use the camcorder's built-in mike, but an inexpensive hand-held type is recommend; and a portable light (with stand), just in case you have to shoot in any areas that require a bit more illumination than room lights or natural lighting provides. Nothing fancy here, either; a couple of hundred watts should do it.

Now that you have your equipment, the next thing you need to know is "WHAT DO I SHOOT?” The best place to start is with an establishing shot. Begin with the exterior of the home or the business. Then, go through the door and begin.

Go on a tour from room to room. Get shots of the entire room first, and then follow with close-ups of the items of importance in the room. It may be necessary to shoot the same item from a variety of different angles, and always get close-ups of serial numbers when the item has one. While you are showing the different items, the narrator should be explaining, in detail, when the item was purchased, from whom, how much was the purchase price, how was it paid for, and any other relevant information. Include pictures of brand names on clothing or patterns on china. Take pictures of porch furniture, pool equipment and anything you own that's outside.

Be as thorough as possible, making sure you include at the very minimum the items you would want replaced in case they were damaged, destroyed or stolen. For example, the boxes of old clothes in the attic are junk (not to mention a fire hazard), but the new wardrobe hanging in the master bedroom closet is considered valuable.

Store the video inventory in a safe, fireproof location (a safety deposit box is best), and make back-up copies. Make sure you label all tapes properly and clearly, and put them in a dust-proof locking library tape case, too.

Some other things that you should be aware of when it comes to video inventories...

FACT: Insurance industry statistics report that only 1 out of 5 homes have an inventory. That one household will always collect more in an insurance claim.

Make sure you know exactly what you own. A home inventory management system protects you and helps maximize your insurance claim.

Protecting your home, and home insurance investment, involves a fair amount of careful work. It's a big task, but it's a necessary one, and a home inventory is easily.

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Crime prevention and security tips (think of them as a checklist) that will help you reduce your chances of becoming a victim.

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Fire safety and prevention habits and practices can prevent fires from starting and, should they occur, limit their damage.

General Household Safety and Prevention Tips:

Taking an inventory of all items in your home is an important part of maintaining control over your home ownership. First of all, it gives you a complete picture of your personal property, the value of which can be totaled and is a component of your current net worth. Secondly, a comprehensive home inventory is important should you ever have an insurance loss. Keeping the inventory up to date, and having photographs or a video tape to accompany it, should save you a great deal of aggravation should you need to report a loss to your insurance company.

Once you have completed your home inventory, make two or more copies. File one copy with your important housing papers at your home. File a second (or better yet, additional copies) in a safe deposit box away from your house, at a friend or relative's house, or at your place of employment. Obviously, if you have a major loss at your house and the only copy of your inventory was there, you will spend an enormous amount of time and frustration attempting to recreate it.

Home Inventory & Security Program