With a little diligence and attention to detail, homeowners can prepare to make the best of the worst.
“People underestimate how much stuff they have, whether it’s shirts, socks or suits,” said Shelly Crawford-Stock, owner of CF&H Insurance, headquartered in Monticello, IL. “You’re much more likely to be fair to yourself if you give yourself a virtual reminder.”
What does that mean? Ideally, homeowners should make lists of the contents in every room and attach the appropriate receipts. That way, the list includes not just the top-of-mind items that get used every day, but also the much-loved keepsakes and family heirlooms that decorate shelves or dressers. At a minimum, list large items and major purchases—like furniture, appliances and the like. However extensive the list, homeowners should add to it regularly as they buy. It may be hard to get started, but it’s easy to maintain.
Then, use a camcorder to make a video record of the home or business, going room by room and panning throughout each room. Open drawers and closets, and make every effort to get every square inch on tape.
“At the time of a claim, it’s very hard to recall what’s in a room,” says Crawford-Stock. “A visual aid is very important because you’re upset, and your insurance company is required by law to list everything in the room to show they had reason to make the payment they made.”
Save all of this backup—videos, lists, receipts—off site somewhere. Give it to a friend or relative; put it in a safety deposit box; ask your insurance agent to keep it. Just don’t keep it in the house.
Speaking of backup, the backup should also include computer files. As sturdy as computers are these days, there’s no guarantee they’ll survive fire or flood.
And it isn’t necessary to have a copy of the policy on hand unless the policy isn’t through an insurance agent. If it came from an online or direct mail source, it’s very important to have a copy off site with a list of contacts.
In addition, list important account numbers and contact information, for example bank accounts, loans, investments, and keep a copy off site for easy reference if necessary.
Many finance programs such as Quicken or Microsoft Money offer the functionality and capability of keeping lists electronically with account number as well as purchase information and date, then automatically performing a monthly backup.
Bottom line: the more you can do up front, the less stress you’re under in an already-stressful time. Adds Crawford-Stock: “It’s easier to get your reimbursement as quickly as possible.”
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