Flood, Fire, Hurricane or Burglary – one step to protect your assets in all these situations

By Laura Chiesman

Conducting a Home Inventory: A home inventory is a complete and detailed written list of all your personal property that’s located in your home and stored in other structures like garages and toolsheds. It should include your possessions as well as those of family members and others living in your home. It would help if you prepared an inventory whenever you move into a new home. To keep track of new additions and discarded items, be sure to update it every year.

Wasn’t there a vase on that table in the study?

It would be quite an accomplishment for any of us to recall all of the contents of any one room, even at the calmest of moments. Remembering everything in your house and garage after a fire, theft, or other calamities would be virtually impossible. Yet that’s what you’ll be asked to do when submitting a claim on your homeowner’s insurance unless you’ve already prepared a written inventory of your possessions.

Omitting items or failing to include an adequate description of an item may prevent you from receiving total compensation from your insurance company. However, since the whole point of buying homeowners insurance is compensation for a financial loss, why bet everything on your memory? You’ll also find that a detailed inventory helps when filing a police report or trying to prove a loss to the IRS.

Include everything but the kitchen sink

Under the terms of your homeowner’s policy, your claim for the damaged or stolen property should show the quantity, description, actual cash value (i.e., the depreciated value of an item), and amount of loss associated with each item. You’re also asked to provide copies of bills, receipts, and other documents supporting your claim’s figures. If possible, keep copies of these documents off-site, too. It’s also essential to include every item’s purchase price and the date and note the serial numbers and model numbers of any appliances and electrical equipment.

Listing the contents of each room and building your items separately promotes thoroughness and will help you organize your inventory. Make sure you catalog every room’s contents, including rugs and carpets, wall hangings, curtains, blinds, and draperies. Be descriptive–refer to colors, dimensions, manufacturers, and composite materials whenever possible. Make sure you include parts and the contents of drawers, shelves, closets, storage boxes, and built-in cabinets. Describe not only the bed but also the headboard, mattress, and bedding. Identify every item you would have to box or carry out if you move out of your home. The only things you should leave out of your inventory are the four walls, the ceiling, the floor, and the fixtures (e.g., toilets and sinks).

Give a complete description of any expensive clothing items, such as leather or wool coats, boots, suits, or formal wear; if you’d rather not describe every item of clothing, at least list quantities (e.g., six wool sweaters, two pairs of sneakers, two pairs of corduroy trousers).

Ensure to include the items stored in your attic, basement, garage, or outbuildings. Sports equipment tends to be expensive and should be described in as much detail as possible. The same goes for jewelry, furniture, antiques, collectibles, and other costly items covered by your policy. Don’t forget tools and outdoor equipment like lawn furniture and barbecue grills.

This isn’t a test; you won’t be graded on your inventory for accuracy, completeness, or legibility. However, if you can’t stand this overly detailed approach, at least take the time to jot down any items valued at $50 or more. Hopefully, you’ll never have to use your inventory, but if you have to deal with a catastrophe, you’ll be happy you took the time to make a permanent record of all your possessions.

Getting the picture

Since a picture’s worth a thousand words, consider taking a photograph or videotape of each room, with separate photos for big-ticket items (e.g., your valuable coin collection). If you use a camera, label each image with notes about the things shown. If you use a video camera, provide a running commentary describing every item (e.g., date of purchase, price) that comes into view. Make sure to date-stamp the video, and take a shot of that day’s newspaper. Contact your homeowner’s insurance agent; some offer a videotaped inventory as a free service to their customers.

Keep your inventory safe.

Remember the purpose of your inventory. If there’s a fire or catastrophic event, it’ll do you no good if it’s burned up in the fire or washed away with the flood. Whether the inventory is recorded on film, videocassette, computer software, a sketch pad, or on the back of an envelope, please keep a copy of it stored somewhere safe, like a safe-deposit box at a bank or your desk at work.

If you would like a copy of our Home Inventory checklist, please call a WealthCoach at FirstWaveFinancial, today. Are you interested in other ideas to be proactive to protect your financials? Call our wealth services firm in Satellite Beach, FL – Melbourne/Brevard area at (321) 773-7773.

You should not assume that any discussion or information in this publication serves as the receipt of, or as a substitute for, personalized investment advice from FirstWave Financial. A copy of FirstWave’s current written disclosure statement discussing our advisory services and fees is available upon request.

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