5 Big Assumptions About Insuring & Documenting Personal Property

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1. I have homeowner's insurance so I don't need an inventory of my things.

What many people do not understand is that even if you have insurance, in the event of a loss you will need to justify what you had. Most importantly, how do you know that you have the right amount of insurance? Having an inventory forces you to evaluate what you have and gauge if your insurance coverage is accurate.

2. If I have photos of my valuable art and jewelry I will get reimbursed for the full amount of the items.

Typically with most insurance policies there are certain limits as to what the insurance company will pay for certain valuable articles such as jewelry, silver and artwork. For example, a box of silverware is stolen containing $20,000 worth of silver however you policy has a limit of $10,000 then you are out of luck. Having a record of these items is a great start but insuring them separately, or scheduling these items allows you to insure them for a specific value as well as several other benefits. We recommend consulting with your insurance adviser to provide guidance. To find out more about insuring valuable articles read our post titled "Insuring Valuable Articles: Your Questions Answered"

3. If my house were to be destroyed my insurance company will write me a check for $500,000, the amount of personal property coverage I have.

Not necessarily. You will need to have justification for what made up that $500,000 and trying to recreate this from memory during a highly traumatic time can be challenging to say the least.

4. Once I have scheduled or secured a floater for my valuables I do not need to be concerned with the values.

 There are 2 big issues that we typically see when speaking with clients about their scheduled valuables:
1. They insure items based on what they paid for them 7, 8, 9 years ago. What if the value has changed? If you are paying for the insurance you might as well get the most out of it by making sure you are reimbursed based on the current value.
2. People forget to add things. Your husband buys you a new tennis bracelet for Valentine's day or you buy a new painting during your travels but you forget to insure it. We recommend reviewing your insurance schedule annually to confirm that it is accurate. Values should be updated every 2-5 years depending on the type of item but speak with a certified appraiser who can help guide you in the right direction.
 

5. I don't have that much and if something were to happen to my things I could remember what was there.

Many people forget that in addition to the main rooms in the house (Living Room, Dining Room) there are many other places where valuable possessions may be. For example, the closet. Think of the number of pairs of shoes, purses, suits, shirts, etc. What about in the garage? Golf clubs, bicycles and other sporting goods. It isn't until you try to go room by room in your head that you realize that you possess a fair amount and there are many things you may not remember.

In summary, the key is to have a record of what you own before a loss and be sure to consult with your insurance adviser about limits, valuable articles and scheduling items. If you are interested in having a professional inventory completed contact us a (888) 784-6630. To find out how to take your own inventory, CLICK HERE.