No one likes to think about the possibility of experiencing loss or damage to their belongings. Unfortunately, if it does happen, you must think about it and plan for it beforehand. As a homeowner or tenant, it’s essential to maintain a home inventory for your contents insurance. A current inventory of your belongings makes it easier if you suffer a loss and need to file a home insurance claim. In this article, we explain the necessity of having contents insurance and list why you need a home inventory list to protect your belongings.
What is Contents Insurance?
Contents insurance is one of the most important investments you will make as a homeowner or renter. A comprehensive home insurance policy includes protection for personal belongings and compensates for damages or losses because of named perils, such as vandalism, fire, theft, and more. In addition, it can offer coverage if someone injures themselves on your property. Your home policy typically includes contents insurance. Financial protection is included in your home policy in case your belongings are lost or damaged. Whether you own your home or are renting, it’s important to remember that not all insurance policies are created equal.
What does it cover?
Contents insurance covers the financial cost of replacing personal items that belong to you and your family. Policies can differ somewhat, depending on your living arrangements and whether you own a detached home, a condo, a townhome, or if you rent. Furthermore, your belongings are typically called your “contents” on a home insurance policy. This is everything in your home and your property, including your garage and backyard shed items. In short, they exist to pay you partial or full replacement costs (or, if applicable, repair costs) of the items in your home that are damaged or lost.
What is a home inventory?
Typically, a contents insurance policy covers your possessions up to a certain agreed-upon dollar amount. To know exactly how much coverage you need, you must know how much you have. The most effective way to determine your needs is to go through your home, room by room, to determine the total value of your things. A thorough home inventory of your contents and their associated value will help you and your insurance representative ensure you have adequate coverage. If you need to make a claim, your home inventory will help you receive proper compensation. The amount of coverage your policy provides should allow you to replace all of the contents of your home. Or, at least the majority.
Why keep a home inventory?
Severe weather is rising across the country, making it more critical than ever to ensure that your property and contents are properly insured. With flooding and sewer back-up occurring more frequently, Canadians must be prepared for the unexpected. If your home or rental is damaged or destroyed, it must be insured for its accurate replacement value.
According to the Insurance Bureau of Canada (IBC), a thorough inventory of your home’s contents and the associated value of the contents will help you and your insurance representative confirm adequate coverage. So, if you need to make a claim, your home inventory will help you receive proper compensation. Let’s take a look at some other key reasons to keep a home inventory list:
- Know your worth: Keep a list of your items and their value easily accessible.
- Determine coverage needed: This helps you decide if endorsement riders and/or floaters are needed (for items such as art, jewelry, furs, etc)
- Verification: Helps to prove items listed on a claim did exist.
- Speed up your insurance claim: Time isn’t wasted trying to make an inventory after damage has already been done.
- Maximize your claim payment: You won’t forget any of your belongings.
Keeping your records off-site is a good idea if a fire or flood damages your property. A family member’s home or safe deposit box is also a good option. Be sure to keep an online digital backup, as well. In addition, update your home inventory each spring and advise your insurer of any major purchases to ensure proper coverage.
What should be included on a home inventory list?
A good home inventory should have the following information:
- A description of each item, including the make and model (if applicable)
- Estimated value of the item
- Purchase date
- Receipts
- Serial number
You’re not going to have receipts for everything you own. But for general categories, like clothing, you can provide a count. Remember to account separately for any valuable items, like an expensive suit or dress. Don’t forget off-site items, such as belongings you keep at a storage facility. Your home insurance policy may cover items at off-site facilities from problems such as theft or fire. Let’s take a look at some items that are commonly included under contents insurance:
- Furniture
- Appliances
- Electronics
- Décor items
- Toys
- Jewellery
- Clothing
- Decorations
- Bikes
- Instruments
- Books
- Minor appliances
- Office supplies
- Bathroom essentials
- Collectibles
Keeping an up-to-date inventory of your belongings will ensure you have the appropriate coverage. Special events like birthdays, anniversaries, or even Black Friday splurges will affect your inventory’s total value. This home inventory will also act as proof of personal items during a claim and make it easier for you to provide information to your insurer.
How to make a home inventory list
A home inventory can be as simple as a written list, pictures, or a video. Or use a home inventory app to help you compile your list. As you track your personal belongings, don’t forget all of your drawers, closets, attic, and basement. The key is to be as detailed as possible and to store a copy of the inventory outside your home.
1. Make a list
- Organize your list by room: Pick a room and record its contents. Be sure to list not only furniture and electronics but also small items on shelves and drawers.
- Organize your list by groups of items: Group together items like antiques, artwork, clothes, collections, jewelry, kitchen items, furniture, musical instruments, and miscellaneous items.
Be sure to keep detailed records. If possible, include dates of purchase, serial numbers for electronics, and receipts for high-ticket items. Also, always create a backup file on a USB, Google Drive, or Dropbox.
2. Take photos and/or video
If you have a smartphone, you have the tools you need to record your personal belongings with photos or video. Take a walk through your house and capture each item. If possible, get a clear shot of the serial number. If you’re taking a video, it’s a good idea to describe the item, its estimated value, and the date of purchase. To help get you started, the Insurance Bureau of Canada offers a personal property inventory pamphlet that is available for download to help you organize your belongings.
3. Using a home inventory app
A home inventory app helps you to organize, document, and keep track of the items in your home, in storage, or across multiple properties. You can use apps, like Sortly and Nest Egg, on your smartphone or tablet to list items, store photos and videos. Home inventory apps have a wide variety of capabilities, including:
- Grouping belongings by category
- Scanning barcodes for accuracy
- Uploading and exporting photos
- Organization in categories and sub-categories
- After purchasing an iOS-only app, you can install it on all your devices: iPhone, iPad, and iPod Touch
Whether you rent or own, you have a lot of personal possessions that need protection. A home inventory list is a vital component of protecting the contents of your home. This list will ensure you have added protection if any of your belongings should happen to be stolen, damaged, or vandalized. Make sure you have the right home insurance coverage. Please speak with one of our isure representatives today to learn about contents insurance to help protect the possessions you cherish. Contact us or request a quote today!
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