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Intro: |
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| Keep the list, any receipts, and the pictures or videos in a safe place, preferably away from your home. Add items to your inventory list as you buy them, and update your policy if the total value of your possessions exceeds the amount you're insured for. Decide on an average cost to replace items like clothing, books, and CDs. Then count how many you have and multiply the number of items by this average replacement cost. |
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Make a list of all your belongings, including information about what they're worth. Make an inventory. Go through each room and space in your place, writing down everything you see. It's tedious, but it'll help you remember everything. Count your books and CDs, and remember rugs and curtains and the contents of drawers and closets. Next to each item, write when you bought it and how much it cost. If you have receipts for items on your list, keep them or copies of them with your list. If you don't have records, estimate what it would cost you to replace an item. Get appraisals. If you have furs, jewelry, antiques, coin or stamp collections, or other precious goods, you'll probably need to "schedule" them so you can insure them for their full worth. This means you'll need to get them professionally appraised, then itemized in a separate document or "rider" attached to your main policy. If you own a condominium, you may need to have your interior fixtures, installations, and improvements appraised. The insurance company will do it for you, but see 2torial #0790: Shop for Home Owner's Insurance for information about finding your own appraiser. Take pictures. Capture each room and each prized item on film or video. This documentation will provide good evidence of the value of your possessions if you ever need to make a claim. Arrive at a dollar amount. When you're done with your inventory and appraisals, total up the separate values of your possessions. This total is your replacement value, and represents the amount of property coverage you should buy. Choosing an appropriate amount of liability coverage is more arbitrary. Remember, this is the part of your policy that covers your visitors' accidents and any medical and legal costs that arise from them. Agents typically recommend liability coverage of $100,000 (U.S.), but you may wish to buy more or less depending on the number of visitors you tend to have and your degree of comfort with this sort of risk. Note: If you have a home business, you'll probably have to buy a separate policy that covers your home office equipment, inventory, and other business-related property and liability.
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Determine your level of coverage
