Often people hear they should have an inventory of the contents of their home or business.
As the owner of an inventory company, I wholeheartedly agree.
This agreement is not just because we provide the service.
I learned it first-hand when we experienced a burglary of our home.
In fact, two burglaries.
Both times, the insurance agent's first words were something like this: Create a list of everything that was stolen...
Do you wonder if I forgot something? I can tell you, I did! Forgetting items is one of the reasons to have an inventory of your assets prepared before you need it! Afterwards, it's too late! Besides forgetting some items, people don't receive sufficient replacement dollars for other items that they do remember.
Why? Often there is a large range of dollar value, depending on if it was a high-end item or a lesser-value product.
Without model and serial numbers, you can't prove which you owned, and most of the time you'll have to settle for a fixed, or standard, amount determined by the insurance company.
It's a time-consuming project to create an inventory, especially when under the stress of having just experienced a major loss from a burglary, fire, or natural disaster.
Creating this list, item by item, often encourages people to just submit major items and accept knowing they'll not recover properly.
That can result in thousands and thousands of dollars never to be recovered.
What happens if you don't create the list? Unquestionably, you won't receive any money from your insurance company! It is plainly stated in your insurance policy that you are required to provide a list to your insurer.
There is verbiage stated in the document from the Insurance Services Office, Inc.
, that is included in every homeowner's policy.
It states, "Duties After Loss: In case of a loss to covered property, we have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us.
These duties must be performed either by you, an "insured" seeking coverage, or a representative of either.
" There are eight items listed that you are required to do.
Number six says, "Prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss.
" If you don't comply with these requirements, the insurance company has the right to refuse to pay you for your loss.
The fact is that you really do need an inventory.
You do have a choice, though, regarding when you create it.
You can do it yourself, or have a nationally certified inventory company complete it for you now, before you need it.
The other choice is create it after your loss, and accept that you'll most likely not recover sufficiently due to the emotion and stress you'll be experiencing at the time, and facing a deadline imposed by the insurance company.
Having an inventory prepared by a nationally certified professional prior to when you need it makes sense.
You'll know you'll recover more quickly with a maximized claim if you do have a loss.
And if you don't have a loss, you'll have benefited from having peace of mind, and that's worth even so much more!