Replace After A Fire +
After a fire, how does my Insurance Company know what I owned so that they can replace it all?
The insurance companies don’t know until you compile a list for them,
which is why we recommend you do an inventory of your contents before
you have a claim.
After
a loss, it is impossible to remember everything you had. A quick test, from the Insurance Bureau of
Canada, is to make a list of the contents of your bedroom closet without
peeking. Tough, isn’t it?
Most
policies base your content coverage on Replacement Cost – the cost to replace
the items with the same kind and quality NEW.
Insurers expect you to know what you own, and to insure to that
value. If you don’t have enough
coverage, you will likely be unable to replace a lot of your possessions. Finding that out after a loss is devastating.
Do
you think $50,000 sounds like a lot of content coverage for a house or
apartment? When you list big items like furniture and a stereo, you have a
decent total to start. But what about
the “little stuff”. For example, a
family of four can own upwards of 80 T-shirts.
At even $25 each, you have another $2000 already!
Clothes,
toys and computer games are one thing, but what about toiletries, pots &
pans, food, cleaning supplies, garden tools, sports equipment, , collectables,
and so on!
Don’t
forget gifts, or hand-me-downs! Add the
replacement value of these toys, clothes or furniture.
Tools
to document your contents could be pictures, videotapes, or audio-tapes. However, a written compilation is best as you
can list values and come up with a total to insure. The inventory should be stored somewhere
other than your home, and some companies offer a discount if you submit an
inventory (as it can reduce paperwork and stress significantly after a loss).
An
inventory also helps identify special items that are not covered fully under
standard wordings. Additional coverage can then be arranged for expensive
jewellery or furs, antiques, gun collections, etc.
Brochures
are available, and we have built an Excel spreadsheet if you want a tool to
use. Call with your email address or
stop by with a disk.
Please call or drop us a note if you have
any suggestions for other topics for this column.
