A home inventory is an important part of your homeowners insurance policy. It is the portion of your policy that protects your household belongings and is very adaptable at any point to ensure you are always covered to the point you need.
Defining a Home Inventory as a Part of Your Policy
The basic question is what is a home inventory? Simply put, it is a list of all your personal belongings that you store in your home. The list will also include a description, receipt if possible, and an estimated value. It is generally done at the point when you move into your new home and it can be checked and updated periodically as you add or subtract items to and from the list.
Updating the Home Inventory
It is important to update the home inventory at least once a year, or when you add or subtract an important item. If your list is not updated and you don’t have the appropriate coverage for your personal belongings, important items, expensive items, may not be covered if they are damaged. This could lead to you having to replace items out of your own pocket. Also, if you sell an expensive item, you could reduce your coverage and lower your premiums, so waiting too long to update the inventory in this situation will cost you money in premiums.
Scheduled Personal Property
There are some items, that if you want them covered and they are stored in your home, you will need to make a special note or endorsement on your policy. It is called the scheduled personal property endorsement and it is specifically for expensive items. Most policies will cover specific items only up to a certain amount, depending upon the policy. This amount is usually in the neighborhood of $2,000 to $5,000. So, if you have an item that is worth $5,500 and your coverage only goes up to $5,000, you will not have full coverage for that item unless you add the scheduled personal property endorsement to the policy.
Accurate Home Inventory for Appropriate Coverage
The key to a good home inventory is accuracy. Accuracy will ensure that you are getting specific items covered that you need protected, and it will also ensure that you are not paying for extra coverage that you don’t need. It may take a bit of time initially to get your list accurate, but it will be easier as time goes by to just add or subtract items to keep the inventory updated. And the time you spend will be well worth it if you suffer severe damage to your home and its contents.
Quotes for Your Home Inventory
The home inventory is a rather small part of your homeowners insurance policy, but it can still have an impact on your rates. To evaluate which companies will offer you the best rates on your homeowners insurance with a specific level of coverage for your home inventory, you can get free online rate quotes. They take only a few minutes and you can use them when you first purchase a policy to find the best deal. You can also get homeowners insurance quotes any time you make a change to your inventory to see how it impacts your rates and if there is a better deal somewhere else.