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The importance of making an inventory of your possessions for home insurance purposes.
If the unthinkable were to happen, and you lost practically all of your possessions to some unforeseen disaster, your home insurance would kick in and make everything normal again - right? Well, yes, no, or maybe is probably a more accurate answer. A lot depends on the fine print in your policy, and how well you can substantiate your claim amongst other factors.
Know what you're insured for and what you're not:
To begin with, when purchasing a home insurance policy, or any insurance policy for that matter, make sure you take the time to read and understand the policy before you buy.
Most people know vaguely what their home insurance policy covers, but relatively few have bothered to inform themselves of the specifics. Finding out after the fact that you're not covered for something that you thought you were is an experience you simply don't want to have.
What would it cost to replace all of that stuff in your house or apartment?
Even if it seems to you that you don't have terribly much in the way of possessions, consider for a moment how you would cope if you had to replace all the essential items that you've accumulated over the years in the event of some disaster. Under such traumatic conditions, would you even have the presence of mind to recall all of the items of value that you owned?
Have you ever stopped to think what it would cost to replace clothes, shoes, accessories, sports equipment, games, electronics, cameras, DVD players, television sets, furniture, kitchen utensils, and on and on. The cost to replace music and media collections as well as collectibles can quickly add up to a small fortune. This may not be immediately apparent because it may have taken years to accumulate the collection piece by piece.
Recovering the costs of these items without receipts could also be problematic, because, without some kind of proof, the insurance company may dispute your claim. This is why it's a good idea to keep receipts if you can, especially for the more important and expensive items you own.
A simple answer may be to make an inventory of your possessions:
If you do this, and do it well, you greatly reduce the chances of disputes arising between yourself and the insurance company over settlement amounts. You may also dramatically speed up the process of settling your claim. Speed of recovery is something that cannot be overestimated in times of great stress, like losing all of your possessions due to fire or some other calamity.
Taking inventory does not have to be complete drudgery. It could even be considered a bit of an adventure. It all depends on how you go about it. You could get out a notepad and pen, and begin to write down everything, collecting all receipts in your possession as you go, and you could also take pictures to document items of special importance.
The easiest way to inventory your possessions for insurance purposes may be to use a video camera. You could do a walk through tour of your home or apartment and briefly focus on and discuss each item of value. You could even record receipts that are in your possession. Remember, the more thoroughly documented the better.
Make a copy of your records, and store them elsewhere.
It makes no sense to go to the trouble to inventory your possessions and then store the only copy with everything else that you own. Make a copy of the records, and ask a trusted friend or relative to keep the copy at their place. (You could offer to do the same for them.) This way, if disaster should strike, your only copy of the inventory of your possessions would not be destroyed along with all of your other belongings.
Rampant insurance fraud means more scrutiny of claims:
Because insurance fraud is so rampant, it costs insurance companies and ultimately consumers a great deal more than it otherwise would to insure their property. It is estimated that about 10 cents of every dollar of the premium you pay goes toward covering fraudulent claims. So don't be surprised if your insurance company decides to closely scrutinize your claim. They may even deny parts of your claim that you are unable to prove. Having documentation of some sort to prove your claim will be of substantial benefit to you if the insurance company should question your claim.
Ask yourself right now, if the time should ever arise that you need to make a claim for your losses under your home insurance policy, would you be able to support your claim?
You'll be far better prepared if you follow some of the advice in this article, and inventory all of your important possessions. If that awful day should ever come, you'll celebrate the day you decided to take on this relatively easy task.
Following these common sense tips will help you to enjoy your bike and stay safe. When it comes time to purchase your insurance, remember that Kanetix can help you with free quotes.
Kade Phillips is a contributing writer at Kanetix.com,
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Disclaimer - The above description/explanation is intended as a guideline only, and is not to be interpreted as a recommendation to buy or sell any insurance products, or to provide legal or financial advice of any kind. Also, Kanetix Ltd. does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed.
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