A Home Inventory…Will Help You Establish Whether Your Contents Are Properly Insured.

Home Inventory

According to a recent survey some 33% of home owners and 38% of tenants don’t know the actual value of their possessions and about 25% of those who did work out the value of their contents, never got around to updating their insurance cover.

Incredibly, an estimated 5.9 million mortgage holders are under-insured, yet research showed that 55% of homeowners admitted they were fearful of being burgled, 34% about fire, 18% about burst pipes and 11% about suffering a flood.  Under-InsuranceIt is Most Important that you insure your household contents for their total true value, otherwise under-insurance leads to claims not being met in full by insurers.

Under-insurance means that your insurance company will pay only a part of the value of your claim. e.g. If you are under-insured by 20%, your insurer might cut the payout on a claim by 20%, because you have not paid the correct premium for the true value of your possessions.

Some Questions To Consider

If your house was totally destroyed by fire, could you then list everything in your house to enable you to make a home contents insurance claim?

Are you confident that the level of your house contents insurance represents the real value?

Most policies require you to specify items that are worth more than a given value, for them to be covered at all by insurance. Have you checked that all your possessions are actually covered by your home contents insurance policy?

So How Does a Home Inventory Help Me?

• If you make a substantial insurance claim for possessions, which have been stolen, lost or destroyed at home, then your insurer will insist that you complete a household inventory as part of the claim. This would be a nightmare in a time of stress, so it would be better if one had already been done.

• If you have to report stolen property to the police, having model and serial numbers etc. will assist them in recovering the stolen property.

• A completed home insurance inventory will establish whether you are under or over-insured and will help you make a decision about the true level of household contents insurance you need. (i.e. the total Sum Insured by the policy)

• Assists you in managing an insurance claim efficiently, so that your claim is settled quickly and in full.

To Create A Home Inventory Tour your house (including the loft, garage and shed) and list everything, including what it would cost to replace every item, new, at today’s prices. You should obtain a professional evaluation of art, antiques or jewellery. You should also take photographs or videos to prove the existence and condition of the items in your home inventory.

Even if you have a replacement as new policy, you should make due allowance for fair wear and tear on such things as household linen and clothing. It is your responsibility to get the sum insured correct!

It is a good idea to keep your inventory in a secure fireproof safe, or a safety deposit box, or elsewhere away from your home, so that it is available as evidence in the event of a claim.

Keep It Up To Date 

• Make sure that your Sum Insured is always up to date. You can choose to link your sum insured to the Retail Price Index (RPI). Your sum insured is then automatically changed each month in line with the index and you are not charged for any increase between renewal dates. Index-linking can only work properly if your Sum Insured is correct at the outset.

• Review your total cover periodically. If your policy is not index-linked, review it every year and add an amount for inflation during the year to come.

• Remember to increase your Sum Insured if you add to your possessions e.g. by buying a new suite of furniture or a Hi-Fi.

• Always keep receipts and valuations on file, as these can be very helpful if you have to make a claim. Take photographs or videos of valuables and keep them with your policy.

Home Inventory Management Software is now available to enable you to produce, manage and store your Home Insurance Inventory wih ease.

Do It Now! Plan to start an insurance inventory in at least one room in your home this week, then continue one room at a time until it is completed. If you have only just moved into your house, this is an ideal time to sort out a home inventory.

Security Marking…Improves Your Chances Of Recovering Your Stolen Property.