The majority of homeowners and business owners have their personal property (contents) insured.Even though the cost is extremely reasonable, there are many renters who do not have contents insurance. This is usually because they don’t realize that they need insurance for their household items such as clothing, furniture, decorative items, small appliances, jewelry, etc. It is extremely important to have these items insured, as the owner of the building does not cover their tenant’s belongings.Being insured is definitely a necessity, whether you own or rent. There are two questions to consider when buying or reviewing your homeowner’s policy, renter’s policy, or business policy:
- Are you properly insured?
- Are you prepared to file a claim?
Do you have enough and the right insurance coverage? Being properly insured means that you have enough insurance to replace all of your belongings after a fire, theft, or natural disaster. For homeowners, this amount is determined by a percentage of your home’s value. An inventory of your contents will confirm that you are properly insured, or will let you know how much additional insurance you need for full protection. Riders are often needed for items that exceed the limits noted in your policy. Often an insurance company will require an appraisal on collectibles, antiques, jewelry, and other high-value items. For those who are renters, whether in a house or apartment, how do you know the value of your belongings? An inventory can provide that information. We are aware of business owners who assumed assets were covered, only to find out too late that they were grossly underinsured. Conducting an inventory and keeping it up to date will help ensure that you are properly insured. Being prepared to file a claim You pay insurance premiums to ensure that you can recover financially when the time comes to file a claim. It is imperative to make sure that your coverage is going to do exactly that. Insurance companies recommend a personal property inventory so you can remember and prove what you owned. Otherwise, how would they know how much to pay you? Your inventory is an itemized list and photos informing them what you had, and the value of each. Without a prepared list prior to your loss, it will be extremely difficult to file a thorough claim and receive an equitable settlement.