How to do a Home Inventory using your Camcorder or Digital Camera

By Ronald R. Reitz, CPPA
October 24, 2010

If your home and possessions were destroyed by a natural disaster, how easy would it be for you to remember every single item in your house? Would you be able to describe each and every possession your family had accumulated over the years, and then estimate what it would cost to replace each item today?

For most of us it would be an impossible task. However, after suffering a loss following a disaster, that is precisely what an insurance carrier will require you to do if you file a claim for recovery.

Following destruction of your property due to fire, flood, earthquake, windstorm or other disaster you will need to assist your carrier in calculating your loss in order to maximize your insurance claim. The insurance company will request an itemized inventory of all damaged and/or destroyed property. The list will need to include a description of the item, the age of the item, and the cost to replace it today.

You will even be required to separate your damaged property from your undamaged property. Have you ever considered where you could store all of your undamaged property?

After a disaster, you will have more important things to worry about than completing an inventory of lost items. The process of searching through all of your damaged things is not only a tedious one; it can be unpleasant and painful.

Quality Claims recommends an annual family meeting to sit together and compile, or update, an inventory of all of your possessions. For many people, a good time to do this is the beginning of each year, right after the holidays, when you may have lots of shiny new toys, electronics, jewelry and other gifts.

You will need to scan each room, identifying every item. To help with this, you can download free inventory list spreadsheets from the Quality Claims Management web site at http://www.qualityclaims.com/. If you are using a spreadsheet, you can check off the items one by one. It is a great time saver and helps you remember to include all of the little things you own.

A fun way to do accomplish this, and probably the easiest and quickest - is to use a video camera or camcorder to make a video record of your property. As you record the video, describe to the viewer what you are looking at.

• Go room by room. Start in the master bedroom: open your closets and make a slow pan across your hanging clothes, shoes and other items you store there. While panning the closet contents you can elaborate with details like: "Here are five businesses suits, 12 pairs of pants and 12 blouses - worth about two thousand five hundred dollars". If you have any expensive or hard to replace items be sure to draw attention to them and record a clear image.
• Open your drawers and lay smaller items like jewelry, watches, and personal items on your bed and photograph those. It is helpful to have your completed inventory list on hand with the detailed information about the items and prices. Ideally, one person should operate the camera while the other reads from the list.
• Don't forget the garage or the kitchen. Make sure you pull out those treasured tools, pots and pans, holiday decorations, etc., and document them as well.
• If you have outbuildings or have invested in landscaping, make sure it all is on video. Open up the shed and film or photograph anything inside of it.
• There are several technical issues to consider: 1) Make sure there is enough light in the room so all of the items can be seen adequately and you are close enough to the video camera so your voice can be heard, 2) Make sure there is a tape, flash disk or other storage device in the camera, and 3) Remember to start with a fully-charged battery so you won’t have to stop mid way to recharge it.
• Make it fun. Get the kids involved. Turn it into a family project. Make sure they help out when you are in their room shooting video of their furniture, toys, computers, cameras and other possessions. You might say "Santa got this computer last Christmas for Mary. It would probably cost us about $350 to replace it.”
• When you are all done, watch the video yourself to make sure you have not missed anything, that the images are clear, and then MAKE COPIES. Burn a few copies to DVDs or onto removable flash or hard drives, and store them away in your safe deposit box, in a secure drawer at work, and maybe send a copy to a relative. You can also post it to an online data storage site. If you have filled out a written spreadsheet, keep copies offsite along with the video.

Some people are uncomfortable speaking on camera. Keep in mind - you are not trying to earn an award for film making. You are just making a documentary record of your possessions. If you make a mistake you can always re-record it. Hopefully, no one will ever have to watch this video again.

Here are a few more tips to make the process easier and more effective.

1. To research how much items cost to replace on your inventory list, you can “shop on line” to see what it would cost to purchase a similar item now.

2. Confirm that your homeowner’s insurance policy contains a replacement cost endorsement for your contents. It only costs a few extra dollars per year and is well worth it.

3. If you received a real estate appraisal when you bought your home, make a copy and keep it with your contents inventory information. An appraisal should contain a floor plan as well as descriptions of flooring, roofing, walls, countertops and other items attached to your home. This is critical information the adjuster will need.

4. Finally, if you have a loss, keep in mind that the insurance company will apply depreciation to each item based on the age of the item. The depreciation will reduce the amount of money they will pay you until those items are actually replaced. Once replaced, you will need to provide receipts proving you spent the replacement cost amount for the items in order to be reimbursed for the difference.

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Ron Reitz is president of San Diego-based http://www.qualityclaims.com/ Quality Claims Management , a nationally licensed public insurance adjuster, providing hazard claim recovery services to investors, mortgage servicers, homeowners and businesses. Earlier, he pioneered the national hazard insurance claims business of GMAC-RFC (now GMAC-ResCap). A CPPA (Certified Professional Public Adjuster), Mr. Reitz is Past President of the California Association of Public Insurance Adjusters as well as an Officer of the National Association of Public Insurance Adjusters (He will be President in 2012). Contact Quality Claims Management at (866) 450-1183 or www.qualityclaims.com

Free downloadable inventory forms are at http://www.qualityclaims.com/homeowner.aspx?sect=_services

Quality Claims participates in the 2010 California ShakeOut!

On October 21 at 10:21 a.m. millions of people practiced Drop, Cover and Hold On in the 2010 California ShakeOut! Quality Claims successfully participated in this event and even staged a mock head injury to practice our emergency skills. See Below:

Inventory Tips

You know how important it is to insure your home and possessions in case of a major loss. It is also important to document your possessions before a loss occurs. You can do this by videotaping your personal possessions. Walk through your home; opening drawers, closets and toy boxes, and describe the items you are recording. Don’t forget items stored in the garage and attic. When you are done, ask a friend or relative to keep the video for you. If you have time, creating written lists is also very helpful. Your inventory should be updated annually. FREE Forms & Checklists

Your home, your choice

United Policy Holders Tip of the Month.
September 2010

Whether your home was damaged by something as wild as a tornado or as commonplace as an overflowing washing machine, your insurer may suggest a contractor to do the repairs. They may call them "preferred" but that doesn't mean you're forced to hire them to work on your home. It's generally up to you to pick who's going to do the actual work. Your insurer should cover the bill for your selected professional, (above your deductible and up to policy limits) as long as that professional has specified in advance the materials and tasks that need to be done and priced the work fairly.

United Policyholders offers many resources to help you navigate home damage repair claims and resolve conflicts that may arise. You'll find sample repair/rebuilding scopes and estimates, tips and guides in the Property Damage section of our Claim Help Library.

Occasionally an insurer will exercise an option that's in most property policies that allows them to "elect to repair" (take charge of the repairs). You can read more about that scenario in a recent entry on the Property Insurance Coverage Law Blog.

Laws and policy language vary state by state, but if you pick a reputable and qualified repair professional who presents a detailed estimate that's in the right price range for the job and you "Speak UP", your insurer should pick up the tab.

San Diego News: Residents Urged To Update Fire Insurance

Channel 10 News : Residents Urged To Update Fire Insurance

Our firm witnessed first hand the affects of underinsuring homes in Rancho Bernardo. Homeowners must be pro-active in requesting a review of policy limits by their carriers. Additionally, if any significant changes have been made to the home, the carrier should be notified. Major changes to homes could increase policy limits.

Sept. 28: Ask a Stupid Question Day

By Amy Danise, Insure.com
Last updated Sept. 27, 2010

Flipping through my “funny holidays” calendar, I discovered that Sept. 28 is “Ask a Stupid Question Day.” Why is there only one day for that?! We love receiving questions from Insure.com readers every day – and we don’t consider any of them stupid. As Bob Passmore of the Property Casualty Insurers Association puts it, “I was always taught that the only stupid question was the one you didn't ask.” There’s no doubt this holds true for insurance – and what better way to learn a little something than by asking a “stupid” question.

So we asked a variety of experts in the insurance industry: “What’s the most stupid question you’ve ever heard about insurance?”

Is this covered?

“If you aren't sure if you have the coverage you want, ask your agent before you have a loss -- don't assume that something is covered,” advises Passmore. Why pay for insurance you don’t use because you don’t understand it?

Should I file a claim that’s only a little more than my deductible?

Let’s say you have damage to your house that will cost about $3,000 to repair, and your home insurance deductible is $2,500. Should you file a claim?

“I then ask why they would want to make a claim for $500 – or less,” says Ron Reitz, president of Quality Claims Management in San Diego, which provides public insurance adjuster services to consumers. Filing claims eventually leads to insurance rate increases. “I do not recommend filing small claims,” says Reitz. “I think insurance should be for the larger claims.”

This reveals an insurance truth that’s hard to swallow: You should pay for insurance and avoid actually using it – except in cases of major damage. Filing a claim that nets you $500 after your deductible is not worth potentially paying hundreds more in premiums over subsequent years after you’re pegged as a “risky” customer.

Will insurance pay for my illegal activities?

Amy Bach of United Policyholders, a nonprofit consumer-rights organization, recalls people asking whether they can make insurance claims for damage to illegal items, or whether they can make insurance claims for lost income that they never reported on their tax returns.

The answer: Maybe! Insurance sometimes pays for damage due to illegal acts.

Isn’t a vicious dog a great way to keep burglars from entering your home?

“No, having a vicious dog can injure innocent people. It can also lead to a lawsuit,” points out Loretta Worters, vice president of the Insurance Information Institute. “The best deterrent is to have a burglar alarm system installed in your home.”

Here’s another indication that a vicious dog isn’t a good idea: Your home insurance rates could go through the roof, or your insurer could refuse to cover you, period. It doesn’t want the risk of an expensive dog-bite claim.

Why do I need life insurance?

“Lots of people have fuzzy ideas that they should get coverage but, because life insurance involves mortality, fail to address the issue properly. Indeed, who really wants to think much of their own mortality?” says Jack Dolan of the American Council of Life Insurers.

But asking “Why do I need life insurance” is often the same question as, “Does my family really need my income?”

“When they understand why it's needed and how inexpensive it can be, they're easily convinced,” says Dolan.

What’s your stupid question?

The Great California Shake Out

By Kim Cary, Senior General Adjuster
September 20, 2010

We have experienced a lot of ground rumbling lately. We have also witnessed the devastation of tsunamis in unprepared coastal regions around the world. The Earthquake Country Alliance fosters a culture of earthquake and tsunami preparedness for individuals and businesses in California. The Alliance, led by the California Emergency Management Agency (Cal EMA), brings together state and local organizations, schools, media, businesses and individuals in effort to encourage the public to prepare for these potential major disasters. Check the website for videos, animation, handbooks and other helpful information on earthquake planning and safety at http://www.earthquakecountry.info/

The Great California Shake Out, a statewide earthquake drill, is scheduled for October 21st at 10:21 am. Everyone is encouraged to Register at http://www.shakeout.org/ and participate. So far 5.5 million people have already registered. The website also contains invaluable information for earthquake preparation and safety.

FOR MORE INFORMATION: http://www.qualityclaims.com/