Creating a Home Inventory

Included in most Homeowners, Condo-Owners, and Renters policies is coverage for the contents of your home.  Do you know how much coverage you need if you had to replace everything in your house?  Would you know what you had in each room of your home in the event of a claim?

Keeping an inventory is helpful to know how much coverage you need, and to have a list of your contents in the event of a claim such as a break-in, a fire claim, or other claim.

There are several different ways to create an inventory – pick a method that works best for you.  Keep a copy of the inventory someplace other than your home.  It is recommended that your attorney or executor of your estate have a copy as well.  You can also leave a copy with a trusted family member or emergency contact.

Ways to keep an inventory:

• Written List  
• Digital List (Online with a Google Doc or Excel Spreadsheet) 
• Pictures/Videos - this is especially recommended for more valuable items.  If you are taking a video, audibly describe items as you move through your home. 
• Combination of above 

It is recommended that you take inventory by room within your house.  Make sure to take photos from different angles and in a well-lit room.  You can also use sticky notes to label certain items.  Keep receipts or appraisals of higher-priced items.  For electronics and appliances, it is recommended to also include the model number and serial numbers of each item.  Don’t forget to include your garage, shed, deck, and basement when you are completing your inventory. 

One example of how you could set-up your inventory digitally would be to use Google Docs.  Create a folder called “Home Inventory”.  Within the folder, you could upload photos/videos of each room.  An inventory would be created with either Google Docs or Google Sheets (similar to Excel); create a separate page for each room. If you are working on the inventory with another household member such as a spouse, you could share the folder and give them editing rights so that they can also modify the inventory.  You could also share the folder with your attorney, executor, or emergency contact with viewing rights so that they have a copy as well, or you could give them a hard copy to keep as a back-up for you.

A few times a year, review your inventory to add new items or remove items that you have gotten rid of.  Make it a habit to update your inventory when you add new purchases to your home.

As you are doing an inventory of your house and come across special or high-value items such as jewelry, art, cameras or coin collections, you might want to talk with your agent about insuring these items as Scheduled Personal Property (SPP) on your policy.  Here is a blog giving more information about SPP, but you can also reach out to your agent for more specific information.

Valentine's Gift Coverage

Each year, we usually have a few clients who get engaged over Valentine's Day.  If you are one of these lucky couples, make sure that calling your insurance company is at the top of your list of people you notify.  Why?  "While there is no way to insure the sentimental value of such a gift, having the right amount of insurance will provide financial protection", according to the Insurance Information Institute.

Jewelry losses are one of the most common losses for all homeowners content-related insurance claims.  So if you received a new piece of jewelry for Valentine's Day (or a nice new set of golf clubs, or artwork, or fancy new camera, etc), you want to make sure that it is insured correctly.

Does the item need special coverage?
Most homeowners and renters insurance policies include coverage for contents, but there are limits to how much coverage there is for high-value items such as jewelry, furs, art, etc.  Usually, we add these types of items to a policy as "Scheduled Personal Property" or SPP.  This has specific coverage for individual items, offer broader coverage for loss (such as if your ring were to accidentally fall down a drain.)  There is usually no deductible applied to items that are scheduled as SPP on your policy.

Keep a copy of your Receipt or Appraisal
Insurance companies will usually ask for a recent appraisal of an item being specially insured as SPP.  This helps with a description of the item and the appraised value.  We also recommend that you keep a picture of items as well - this can help with identifying a lost item.

For more information regarding Scheduled Personal Property, check out this blog on our website.

If you have an item that you want to add as Scheduled Personal Property to your Homeowners or Renters Insurance Policy, please call your Absolute agent at 515-279-2722 or email us at service@insaia.com.

What gifts might you need to specially insure?

After the Christmas gifts are opened, the wrapping paper is picked up, and the Christmas dinner is over, you might want to take a minute to think about the different gifts that people in your household received.  Did anyone receive anything expensive that you might need to add specifically to your homeowners or renters insurance policy?  Did someone receive a nice necklace or ring?  That Gibson Guitar they have been talking about for a couple years?

We have had a few insureds share the great news that they are engaged this holiday season.  Engagement rings, and other jewelry, often has limited coverage on insurance plans unless it is added as "Scheduled Personal Property" to your home, renters, condo, or manufactured home insurance policy. 

We also typically get the question about who needs to insure the engagement ring - the person who gave the ring, or the person who is wearing the ring?  This depends on a few different factors such as whether the couple live together (and have a joint insurance plan) or if they live separately.  Generally, the person who is in possession of the ring needs to be insuring the ring.

Typically, we think about jewelry as an item that might be appraised and added to a homeowners or renters insurance policy as "Scheduled Personal Property", but there are other items that you might want to consider:

• Cameras, lenses, and equipment
• Golf Clubs
• Skis or snowboards
• Road bikes
• Art or antiques
• Firearms
• Computers
• Musical Instruments

If you, or someone in your household, received some of these items, you should consider adding them with special coverage to your homeowners, renters, or condo insurance policies.  Most Homeowner, Renters, and Condo Insurance policies place limits on high-value items.  These items should be added as Scheduled Personal Property to your policy.  You can insure jewelry, furs, fine art, expensive cameras, and other valuable items this way on your policy.  You can contact your Absolute Insurance agent at (515)279-2722 and discuss whether or not to add items to your policy.

What is the benefit of insuring an item as Scheduled Personal Property?

We often include reminders in our newsletter about adding jewelry and other items as Scheduled Personal Property, or SPP, to your Homeowners, Renters, Dwelling, or Condo Insurance Policy.  Have you ever wondered how SPP is different than the regular contents coverage included on your policy?

While your typical homeowners policy includes limited personal property coverage for the contents of the home, sometimes there are limits placed on certain categories of valuable covered items.  For example, a homeowner insurance policy might have a $1500 sub-limit on jewelry.  If you had a loss for a necklace valued at $400, you would probably be fine getting it covered under your homeowners insurance policy (assuming it was lost under a covered peril), but if you had a necklace worth $5700, you would most likely only be covered up to that $1500 policy sub-limit.  Many homeowners choose to seek additional coverage through a scheduled personal property endorsement to their policy.

Scheduled Personal Property also provides broader coverage for the scheduled items.  For example, if your wedding ring drops down the drain while you are washing dishes it may not be covered unless it is included as a Scheduled Personal Property item on your policy.  Also, if a loss were to happen to a SPP item, the policy deductible doesn't apply. 

What types of items can be added as SPP?
• Jewelry
• Musical Instruments
• Art
• Stamp or Coin Collections
• Cameras
• Furs
• Computers
• Silverware
• Golf Equipment
• Firearms
If I have an item I want to add as Scheduled Personal Property to my policy, what do I have to do?
Each item that is added as Scheduled Personal Property to a policy is listed individually and needs to be appraised before they are added.  If it is a recent purchase, the receipt might work in place of an appraisal.  Please contact your Absolute Insurance agent at 515-279-2722. 

June 28th is National Insurance Awareness Day

Have you ever noticed how many "National ..... Days" exist?   While it is fun to celebrate National Ballpoint Pen Day, National Pop Goes the Weasel Day, National Catfish Day, and National Donut Day (all in June by the way), there is one that we focus on here at our agency - June 28 is National Insurance Awareness Day.  (Okay, we did celebrate National Donut Day here at the office too).

National Insurance Awareness Day is just a reminder to review your insurance coverage and see if any changes need to be made.

Some things to keep in mind:

• Is there a special item that you received for Christmas, birthday, or anniversary that might need specific coverage?  A piece of special jewelry?  An expensive guitar?  That road bike you have been eyeing?  
• Do you have a student going off to college in the fall?  This might affect your auto rates depending on where they go to school, and if they are taking a vehicle to school or not.  
• Did the value of your home change?  Does the coverage on your policy need to be adjusted as well?  
• Have you done any updates to the home?  New roof?  New Heater?  New Plumbing?

Our agents at Absolute Insurance work with customers throughout the year to review existing coverages, but if you haven't revisited your policies in a couple years or you have had a big change in your life, this might be a good time.  Give your Absolute Insurance agent a call at 515-279-2722 today to set-up a time to review your insurance policies.

You've Got Some Q's: We've Got the A's

Q:  I am a pizza delivery driver and I hit another vehicle.  My policy will cover the damage, right?

A:  NO.  A personal auto policy will not cover a vehicle being used for delivery purposes.  The same policy will also not cover paid-for snowplowing or people transportation (i.e. taxis).

You would need to have a commercial auto policy in order to cover this vehicle and the liability properly.

If you engage in these types of business, call your Absolute Agent today to ensure you have the right policy!


Q:  I failed to pay the renewal, but companies have a grace period, right?

A:  NO.  If the renewal payment has not been paid, then there is no coverage at that moment.  There are no grace periods on renewal payments as the policy period has expired.  These are handled differently than regular monthly bills that do have a short grace period.


Q:  How often should I get my jewelry appraised in order to keep it as a separate rider on my insurance policy.

A:  You'll want to get such things appraised about every 3-5 years.  This is in your best interest as the price of gold and precious metals and stones have increased drastically over the past 2 years.  For instance, if you had a ring appraised in 2002 and it came to a value of $2,000 and now it would appraise at $10,000 in order to replace, then the company would only be responsible for providing the $2,000 in coverage.  As you can see, given the vast increases in value on these types of things, it is very important to update these every 3-5 years.

You've Got Some Q's: We've Got the A's

Q:  My wife lost her wedding ring while we were on vacation.  Is this covered under my house insurance?

A:  No.  It would have to be stolen in order to be covered UNLESS it was scheduled on the home policy as "Scheduled Personal Property"


Q:  A tree has landed on my house and has caused damage to my home.  Will insurance replace the tree?

A:  No.  Home insurance protects your home and detached structures.  Trees are not covered.


Q:  My vehicle was broken into and personal property was stolen, is this covered under my full coverage auto insurance?

A:  No.  Only items that were attached to the vehicle as stock items are covered.  Personal property losses would only be covered under a home, renters, condo/townhome, or mobile home policy.  Auto insurance never covers personal property.


Q:  Water came up through my sewer drain and destroyed my roommate's belongings.  Will my homeowners insurance cover this?

A:  No.  Your home insurance will cover only those things belonging to you or a family member.  Unless you have Water Back-up coverage, your home insurance would not even cover your belongings.  In this situation, your roommate would need to get a renters insurance policy to cover their belongings in an event of a loss, and in this situation, they would also need to have the renters insurance policy endorsed with the Water Back-up of Sewers and Drains coverage in order to be protected.

Home Claims: How to Keep An Inventory

Keep an inventory of your belongings and updating it periodically is an important aspect to ensuring that the insurance company and properly compensate you for the loss of those belongings at the correct replacement cost.

Some individuals do so with simply keeping a written log of such in a safety deposit box in a bank or at a trusted residence outside their home.  Others will do about the same with photos and video.  These are all great examples of how to protect yourself from a low ball bid from an Insurance Adjuster, or to keep the supplemental checks to a minimum.

Now, as people and society is becoming increasingly paperless, there is a new way to create and save a household inventory.  At www.knowyourstuff.org, individuals can keep a running log of their belongings and can be stored on your home computer or laptop.

This is a very helpful website that not only can help you in the creation of the inventory (there is a short video you may watch that shows the proper steps), the site can actually store the inventory in a secured "Vault".  This software makes creating a home inventory fun and easy.  Once you have completed your inventory, it is easy to keep your information up-to-date.

However it gets done, it is very important to keep and maintain a household inventory.  While insurance companies usually don't have any problems with that which is "usual and customary" additional items and rather unusual items may be disputed.  As a small caution to this, even though you may have an inventory on all your jewelry, guns, and artwork, that does not necessarily mean that you have adequate coverage.  Those items will still need to be scheduled separately to ensure that they are covered to the full replacement cost.

Scheduled Personal Property Coverage

This blog post focuses on Scheduled Personal Property (SPP) and how to insure it properly for the full replacement value.

As most readers already know, your home insurance covers personal property at a certain percentage of your dwelling coverage.  This percent is usually set at 70%, so if you have a $100,000 policy on your home, then your contents are covered up to $70,000.  While this is good coverage, there are limitations placed on certain types of property.  These types of property include (but not limited to):

• Jewelry
• Guns
• Artwork
• Antiques
• Currency

Some of these limits are as low as $1,500 in total per class of items.  Also at stake when looking at these items is that they will fall under the total household deductible.  By this, if your $5,000 wedding ring was stolen, then the company would pay up to the $1,500 minus your deductible (nowadays, a standard home insurance deductible is $1,000).  By this, you would not be able to replace the ring with like kind and quality.  An easy way to get these to replacement value is to get an appraisal for each item that would exceed (or come close to) the limit and get it over to your Absolute Agent.  Not only will the pieces be insured to that value, but they would have a separate deductible of your choosing.  Give us a call today.