Home Inventory Aids in Disaster Planning

How to Plan for Property Damage & Home Insurance Claims

Sep 29, 2009

Hurricanes and other natural disasters can destroy homes quickly and force homeowners to file home insurance claims. Be prepared with a home inventory.

Each year natural disasters destroy homes and place homeowners in a position of having to prove their claims to insurance companies. While disaster planning is often thought as protecting oneself from personal injury, it’s just as important to plan for a home being destroyed.

By creating a detailed home inventory and saving receipts, homeowners attain the supporting documentation needed to prove property claims and receive the money due them. And, by having a home inventory prepared, it ensures property claims can be quickly filed to minimize the back and forth between homeowners and insurers.

Natural Disasters Occur Every Year and Create Billions in Property Claims

According to the Independent Institute which released a September 2009 report, “Catastrophes and Performance in Property Insurance,” 2005 goes on record as being the most costly property claim year with $45 billion claimed. Many claims stemmed from disastrous hurricanes Katrina, Wilma, and Rita. Forecasters are currently predicting a new form of El Nino in 2009-2010 which may cause increased Atlantic hurricanes.

Homeowners who create a property inventory are prepared should any of the following natural disasters occur.

Secondarily, a home inventory may also prove useful when minor occurrences such as theft, minor water damage, or wind damage happen.

Prepare for Disaster by Creating a Home Inventory

Creating a home inventory can be easily done in an afternoon. Begin by photographing each room of the home and include the basement, garage, and any outbuildings. If possible, use a digital camera to take photographs as the photos can be stored online.

Homeowners should also keep a file for receipts of expensive household belongings, as well as receipts for renovations to the property. Also, prepare a written list of belongings in each room that exceed $100 in value, noting any serial numbers for electronics or appliances. If possible, create the inventory using a computer spreadsheet program so that it can also be stored digitally.

While the first step is to create the home inventory, it’s only useful if it survives a natural disaster so safeguarding it is paramount. For maximum safety, create several copies of the home inventory storing one copy online, one in a safety deposit box, and another in a household safe or other safe place.

By having a copy online, it can be accessed from any computer at any time to view the photos, scanned documents, and home inventory spreadsheet. If storing online is not possible, then placing the home inventory in a safety deposit box is next best, but a homeowner will be restricted to access only during business hours.

Keeping a home inventory in a household safe is only useful if it is waterproof and not destroyed during the disaster. Also, it may not be immediately accessible depending on the type of property damage. A home inventory kept within the home should not be the primary copy and should only be used as a reference document.

Disaster Planning Home Inventory Can Assist in Property Claims

Each year homeowners claim billions in property damage due to natural disasters. By preparing a home inventory that includes photographs, receipts, and itemized belongings, property owners can quickly file property claims and provide insurance companies with the supporting information needed to process a claim. Since disasters can strike anywhere at any time, homeowners should store the home inventory both online and in a safety deposit box.

The copyright of the article Home Inventory Aids in Disaster Planning in Home Owner Tips is owned by Allen Williams. Permission to republish Home Inventory Aids in Disaster Planning in print or online must be granted by the author in writing.