![]() But your insurance company won’t know what’s missing.” “The whole philosophy behind a homeowner’s or renter’s insurance policy is to make your whole and replacements should be of like kind and quality. The way to find out is to check your insurance policy’s “contents coverage” clause to see what the limits are. ![]() If the value of your items goes above your coverage, you can add on additional coverage. “Some things, like jewelry, fine art and firearms have a limit per item.” “When you’re doing that inventory, send a list with values in email to your insurance agent, and have them look at it and make sure there’s no limitation on it in your policy,” he advised. Beyond that, you should also consider having several other back-ups, including appraisals and proof of purchase. If you have items that are above and beyond what insurance companies consider reasonable - such as fine art, collectibles, high value jewelry, silverware, fine China, designer clothing, firearms and so on - you want to make absolutely sure these are inventoried. Unusual, Heirloom, Collectible or High-Value Items “So if you have a four-year-old TV, the insurance company isn’t going to buy you a four-year-old TV, they’ll replace it at today’s value,” he said. While insurance companies don’t account for inflation in policies, what they will do is replace items at today’s market value. Instead, Davis recommended, “Go through your home with your smartphone and take a video recording of every wall in the house, even inside drawers and closets.” Though a home inventory sounds like an exhausting thing to do, rest assured - you don’t have to write down every single item in your home. Read: 2023’s Housing Correction Could Be The Largest Since Post-WWII How To Do a Home Inventory The perks of having done an inventory is that insurance companies will “pay you a bigger chunk up front, which will keep you from having a cash flow pinch.” “So expensive electronics, clothing, designer handbags, or jewelry should be listed on your policy,” Davis said. While insurance policies do run on a fair amount of “good faith” even without an inventory, meaning things that are reasonable for people to have, Davis said anything outside of the norm absolutely needs to be inventoried and listed. Davis advises, “People should not trust their memory! Let say it’s a total fire loss for your home - you’ll have so much you’re worried about such as shelter, rebuilding, getting your kids to school, etc.” ![]() While this might seem obvious, people often think they will simply remember what they have - but they won’t. “From an insurance standpoint, the purpose of a home inventory is so you have a record in case of the worst-case scenario and you lose everything through wildfire, earthquake, flood, or massive theft,” Davis said. GOBankingRates spoke to Matthew Davis, an insurance agent with GDI Insurance Agency in Turlock, California, to discuss how to create a home inventory - and why it’s so important. This could help you recoup between hundreds and hundreds of thousands of dollars, depending on the value of your home and what’s in it. One important strategy for homeowners and renters alike is to create a home inventory, something that will speed up the claims process if a disaster does happen. ![]() Learn: How To Build Your Savings From Scratch I’m a Real Estate Agent: Here Are 8 Renovations Buyers Want the Most in 2023 Nobody likes to think about disaster striking their home - whether it’s a wildfire, theft, flood or something else - but being prepared is the best way to mitigate damage and make sure you can recover as quickly as possible. ![]()
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