Inventory your home before disaster strikes
The Fort McMurray wildfire turned many homes into piles of ashes. Families lost a lifetime worth of personal possessions.
Hundreds of insurance adjusters have converged on Fort McMurray, to process claims. Insurance will help families recover from such a devastating and traumatic event.
Unfortunately, some insurance claims will have heartbreaking outcomes. Families are discovering why good record keeping is just as important as having proper coverage.
Here are some tips in case you lose personal items in a fire or burglary.
MAKE A LIST NOW
When you make an insurance claim, submit a list of personal belongings that you lost.
List all your electronic devices, computers, laptops, TVs, jewelry, cameras, music equipment, artwork and collectibles. List the product make, model, serial number and how much you paid for each item.
Document your tools. There has been an alarming rise in theft of tools from recreational properties.
To make your inventory project manageable, deal with one room at a time. Taking inventory of one room is better than having no inventory at all. Type up a list of your most valuable items in a Word document or Excel spreadsheet. Attach the document to an email and send it to yourself.
Home inventory software is also available online. Add photo images and scanned images of receipts to your inventory database. You can input the original purchase price, current value and replacement cost of each item. The software lets you track appraisals, insurance claims and sales.
The inventory list can also be useful for estate planning. You can name beneficiaries to receive your personal belongings when you die.
HAVE ENOUGH COVERAGE
Add up the prices of all your belongings on your list. That amount, plus a little extra just in case, is the amount of personal belonging coverage you should have. You may need to insure bigticket items, such as expensive jewelry, separately. Buy enough coverage.
If you are fortunate, you will never have to make a claim against your insurance. About five per cent of home and contents policyholders will make a claim in a typical year.
PROOF OF PURCHASE
When you make a claim, you will need to prove that you actually owned the items on your inventory list. Be prepared to provide receipts and photos.
Receipts should include the serial numbers and original purchase prices. Instruction manuals can also serve as proof of purchase.
Check your email inbox for confirmation of online orders. Look at your PayPal transaction history. Dig through drawers for instruction manuals and product warranties.
Take digital photos of your most expensive items. Don’t leave the photo files on your computer because your computer itself could also be stolen or destroyed. It’s useful to email the photos to yourself.
You can also buy a camera memory card dedicated to snapping photos of the contents of your home.
Store the memory card in your safety deposit box. If your place is robbed or destroyed by fire, you’ll have those photos to prove what you lost.
If you use a video to record the contents of a room, narrate as you move along. Pan around the room to get an overview. Get close-up shots of individual items.
COINSURANCE
The policyholder normally shares some of the risk when making a claim. You have to pay a deductible out of your own pocket.
That is the portion of the claim you have to pay. The higher the deductible, the more money you can save on your premiums. You also lose your claims-free discount after your claim. You must then remain claims free for a certain number of years before you re-qualify.