When it comes to home insurance it's easy to just take out a policy, put the paperwork away and then forget all about it without even having a clear idea as to the real value of your possessions that you want covering. It's not something that anyone ever really thinks about in too much detail. Approximately one in three homeowners and tenants don't actually know the true value of their possessions. Many of them are drastically underinsured and in the unfortunate event of a flood, fire or burglary they could be in for a very nasty shock.
If you don't take out enough insurance to cover the cost of your possessions, any claim in excess of the cover won't be paid out by your insurance company. If you are not paying the correct premium on the true worth of your valuables then don't expect your insurance company to pay out their full value. It's a smart move to head this one off at the pass and take steps to make sure that not only are you covered properly, but that you also have a detailed record of your possessions, what is commonly referred to as a home insurance inventory.
As well as providing you with all the information you need to guide you towards appropriate cover, a home insurance inventory offers a range of other benefits too. For example, if you have just suffered the trauma of having your house burn down or badly flooded would you really be able to recall every one of your possessions that would need replacing? Even when everything's fine, it's difficult to remember everything of value in your home. During a crisis it would be impossible. Having an up to date inventory to hand will save you a great deal of unnecessary anxiety.
The more information you can include in your inventory, the better. In fact many companies, especially when it comes to sizable claims, will expect to see a detailed inventory. If you have an organised list of valuables complete with model names and numbers, serial numbers and other detailed information you are doing yourself an immense favour in getting your claim processed and paid promptly. Depending on whether you have a 'replacement value' or 'current value' type policy, you should record information about the value of each item as well as when and where it was purchased. You might want to even go so far as to take photographs or videos of your valuables.
There are even computer programs that can create a virtual inventory, including pictures and video images. All you have to do is systematically record the contents of each room in your home one at a time. Remember to include everything - the value of smaller less expensive items can quickly add up. Save the information and make sure you back it up. Store the back up remotely just in case. Hopefully you will never need to refer to your inventory but if you do then you'll be glad you were so well organised. And so will your insurance company. The result is a quicker settlement and, most importantly, peace of mind.
Mark's insurance help is invaluable and he always recommends you compare home insurance before signing up for a new product. Mark Bartley has authored many insurance reports and reviews to help consumers find a suitable product.
