A standard homeowners insurance policy covers both the home itself and the contents of the home. In the event of an insurance claim, any destroyed personal property must be adequately identified. Homeowners insurance policyholders can assist the potential processing of a claim by creating an inventory of household tools ahead of time.
Despite recommendations that property owners take an inventory of their belongings, only a minority actually complete the task. A survey conducted by the National Association of Insurance Commissioners found that over half of the survey participants did not have an inventory of their personal possessions.
In addition to items inside your house, equipment in outside storage should be inventoried. A tool inventory can be created on paper or by entering the information into a computer spreadsheet. In addition, photographs of larger items provide helpful information in the event of a claim. The total value of household tools can mount up surprisingly fast, so even small tools should be individually listed.
You may have a toolbox containing an assortment of wrenches, sockets, and screwdrivers. If so, remove the tools and enter a brief description of each one. The size of each wrench and socket is stamped on the side of the tool. Take a photo of the contents while they are out of the toolbox.
Most larger tools are marked with a serial number when they are manufactured. Each number is unique, so record the tool serial number alongside the description. Make a note of when the tool was purchased and the estimated price paid. For tools such as power saws and electric drills, an individual photo of each item provides better documentation than a single photo of a group of tools.
Keeping original sales receipts for tool purchases helps keep track of their value. Since paper receipts may be destroyed by a house fire, scan the receipts into your computer and save the images on a USB drive. After your inventory list is completed, both the list and the images should be placed in a secure location away from your insured home.
A detailed listing of tools is just one aspect of taking an inventory of your complete household. An inventory for insurance purposes does not necessarily have to be completed all at once. Take the time necessary to produce a correct record over a few days or weeks in case it is needed for a claim.
The value of your personal property inventory provides the information necessary to determine if you have an adequate level of insurance coverage. Contact a home insurance provider like Gayler Insurance for more information on homeowners insurance.Share