By: Mary Thompson, Capstone Brokerage President, September 14, 2017

Homeowners Insurance and properly insuring the homes contents is a hot topic lately, I wanted to revisit this topic with the current disasters our countries is facing both in Florida and in Texas. It is so important to know the contents of your home and have a detailed list of items to insure with your homeowners policy as well as in the event of a natural disaster where either total home loss occurs or partial. Having a list of valuable items can guide you in the claims process and help get your claim accepted in a timely manner.

What is in your home? Do you really know? I certainly didn’t until we had to pack up to move. I got to thinking if something ever happened to my house such as a fire would I really know what I had lost? Knowing what I know about insurance I knew that if something did happen to my home, shortly after an insurance adjuster would come calling. They would have a list of questions; the most important being, “what was lost.” I mean the obvious would be sentimental photos, letters, my children’s baby items but what about the every day stuff or things I haven’t used in awhile.

Homeowners insurance covers what is in your home but you have to know the contents to claim it. It is a highly overlooked area of homeowners insurance to have an inventory of what is in your home.

Technology is on your side. There are apps to help you create your homes inventory. Such as the “My home app” in the ITunes store for apple products. This is also a GREAT resource to help get the process started. http://www.insureuonline.org/home_inventory_page.htm. By spending a little time on this now it could save you a headache later. Hopefully you never need to use the information but its there if you do. In fact creating this list may even make you think of other items that need to be added to you Homeowners Policy.
There are different types of coverage to replace your items as well.

Here are explanations of some of the things you may see in your policy.

Actual Cash Value: insurance company will pay Replacement Cost – Depreciation.

Replacement Cost: As long as coinsurance requirements are met, if your policy specifies replacement cost, the insurance company will pay the cost to replace the property at its current price, less any applicable deductibles.

Extended Replacement Cost:
If your policy contains an Extended Replacement Cost valuation, the insurance company will pay to replace the damaged property, even if it exceeds the limits of your coverage, subject to a certain amount above the policies stated limits. Again, the coinsurance requirement applies.

Guaranteed Replacement Cost: This means the insurer will pay the total required to rebuild a property, regardless of the cost.
So create your contents list, be one step ahead of the game should a loss occur on your home. It is always better to be prepared, want more information on this topic, contact a knowledgeable agent or broker. At Capstone we value our clients and strive to make the claims process painless and convenient.