 Investing Time in your Assets
Documenting your belongings can save you time and worry later, and ensure proper reimbursement for all your losses. The most efficient inventory combines a detailed written list with one of the following:- Videotape with audio narration
- Photographs of valuable or unique items
- Audiotape with photographs of valuable or unique items
No matter what method you choose, make sure to approach this project systematically so you don’t miss anything. Keep a copy of your completed inventory off premises in a safety deposit box or with a relative or friend.
Your inventory should include the following information:- Number of items
- Description of items
- Year purchased
Cost new- Estimated current value
Some tips in completing a Home Inventory:- Begin in one room and cover its contents thoroughly before moving on.
- Remember to include your hallways, attic, basement, garage, porch, patio and garden.
- Open closets and drawers.
- Group like-items together when possible, i.e. clothing can be grouped by category, quantity and overall cost. Note anything of special value.
- Record serial numbers of major appliances and electronic equipment.
- Attach sales receipts and/or appraisals to the inventory list.
- Photocopy important documents and attach to the inventory list. Keep originals in a safety deposit box.
- Photograph valuable items against a plain background, next to a ruler. Turn items over to show any hallmark, manufacturer or pattern information.
- Keep your inventory list updated by documenting any new items acquired.
- Collections and/or specialty items, such as jewelry and art, should be professionally appraised to establish their value. Attach appraisals to the inventory list.
Actually Replacing Value
A good home inventory that is part of a homeowners, renters or condominium owners insurance plan is designed to restore your lifestyle to normal quickly and with minimal additional cost. There are two types of policies designed for this purpose: "actual cash value" and "replacement cost."
Actual cash value policies pay the cost to replace an item after depreciation. For example: your 10-year-old bedroom set might still look good, but it is unlikely you could replace it today for what you paid a decade ago. With an actual cash value policy, you will have to make up the difference.
A replacement cost policy takes into consideration what it would cost to replace the bedroom set at today’s prices. You can expect to pay a slightly higher premium for replacement cost coverage.
Be aware that most homeowners policies have strict limits on certain valuable items, such as jewelry, furs, silver, art, antiques, guns and other collectibles. You may need to purchase additional insurance, called a rider or floater, to make sure those items are covered properly.
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