What would your home be without all of the stuff that’s in it? Whether it’s knick-knacks from a trip to Europe or the old family pictures you have stashed away in the attic, all of your belongings are valuable.
The personal property of your home is covered under your homeowners insurance policy. So, if your personal belongings are ever stolen or destroyed in a fire, you have replacement coverage. Most of the time, you should have contents coverage of 50 to 75 percent of what the structure of your home is insured for. However, sometimes that’s not enough.
To make sure your contents coverage is properly estimated, it’s a good idea to conduct a household inventory. In the event of a loss, this inventory should help you to quickly determine the extent of the damage.
To create an inventory, make a list of all the different types of objects in each room of your house. Then to the side, write the current cost to replace those items. Next, calculate the value for each room, and add all of the rooms together to find the total value of your contents.
Here are some things to keep in mind when doing your home inventory.
- Don’t just estimate big-ticket items such as TV’s and computers; everything is important.
- When valuing items such as bed sheets and pillow cases, don’t forget to include the items that might be in a linen closet.
- Don’t forget to look outside. Outdoor grills, patio furniture, and lawn equipment are covered too.
When you are finished with your inventory be sure to do two things. First, compare the inventoried value with your current insurance policy. If you feel a need to adjust the contents coverage value to better match your inventory, contact your insurance agent immediately. Second, store your inventory in a safe place outside of your home, such as a safety deposit box.
Although it is tough to deal with a loss, having a household inventory can make it easier for you and the insurance carrier.