After the application of a home loan, you will receive two documents, a loan estimate, and closing disclosure. On the surface, these documents are identical but they both serve slightly different purposes. Up Next: Expenses To Expect In The First Year Of Homeownership Here is what you need to know about the differences between these […]
Why You Should Take an Inventory of Your Home
Your home was damaged by severe weather or was a victim of theft and now some personal property is missing. You have to make a claim to your insurance and luckily enough, you have a home inventory list you made earlier that year and are able to verify what is missing.
Creating a home inventory list is very important, as it’s a detailed list of everything in your home from furniture to electronics. A complete home inventory has many benefits from making insurance claims to buying home insurance.
Inventories Help You Buy Home Insurance
One of the benefits of taking a full home inventory is that it’ll help you decide how much home insurance to buy. Before choosing how much homeowners insurance you’ll need, you have to determine the value of your personal property. If the items are covered by the insurance, you will get the right amount of insurance for you.
Inventories Help You Make Claims in Case of Loss
If your home is damaged or a victim of theft, a complete home inventory will make sure that insurers will have enough detail to be able to corroborate your losses and reimburse you accordingly. Apart from being reimbursed via your insurance, a home inventory will also help your claims be settled faster.
Taking Your Home Inventory
It doesn’t matter if you write your home inventory down with pen and paper or use a computer program. When taking a home inventory, do one room at a time and take your time so you don’t miss anything. Include in your report each item’s:
- Purchase date
- Estimated value
- Serial number
Take pictures of each room and focus on valuable items like electronics and jewelry. It’s highly recommended that you have the receipts for items, as an actual price is much better than an estimate when making a claim.
After you’re done, put your home inventory list and all other necessary documentation is in a safe place. It’s no good to you if you lose it! If written down, put it in a home safe or a safety deposit box at your bank. If you decide to go more high-tech, back it up to a cloud storage service like Google Drive or Dropbox.
You must remember to update your inventory annually or whenever you make a big purchase. Doing so will keep your list up-to-date, making the claims process less painful.