Does everybody have to make a home contents inventory?

expeditionist

[FONT=&quot]Someone once told me that in the event of a fire, my home insurance wouldn’t just pay out for the level of cover I insured for, I would have to produce an inventory of everything I wanted to claim for.


Now I’ve been meaning to do a proper home contents inventory for about 10 years now, no exaggeration! The job is too big, I reckon it’s 3 days work to do it properly and life time is too precious to spend 3 days doing a comprehensive home contents inventory when the statistical odds of suffering a house fire are so minimal. I could list the big stuff easy enough, but all the small stuff like picture frames, hdmi leads, bottles of shampoo, books, t-shirts, etc., amount to thousands of items and surely cost about the same in total as all the big stuff.[/FONT]
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[FONT=&quot]So my question is, I’ve insured my contents for a standard amount and paid the premium. In the event of a total loss claim, why don’t insurers just pay out the amount you paid the premiums to insure? Is it not unreasonable of insurers to ask people to make an inventory when you've elected an amount of cover and paid the premiums for that amount? I bet most people are like me and don’t keep a good inventory in case of total loss, or am I alone here?


I would really welcome a page or some information on the MSE site explaining what everybody should do as this info is missing from the insurance advice at the moment as far as I can see?[/FONT]


[FONT=&quot]Also, MSE should do a yes-no poll entitled 'Have you made a comprehensive home contents inventory?'
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InsideInsurance

Insurers rarely will expect an absolute total list of everything you have down to each pot of spices you have but your friend is right in that they dont simply pay out what you've claimed to be the total value (esp as there are many "unlimited" policies). To be honest being over prepared may be considered a fraud indicator.

For a true total loss case they likewise dont start arguing over if you had 10 or 11 $1.99 bottles of spices. You evidently provide a list of any of the larger more expensive items but the general stuff (pants, socks, toiletries, plates, spices etc) are normally estimated based on a number of factors. These can be adjusted by you evidencing a general living standard which may be different from the norm - a guy working in finance's clothes are probably going to be more expensive than a mechanics due to having to have suits, formal shoes etc.

Thankfully true total losses where nothing is left is very rare and normally there is salvage to help support the claim that you are a wine collector etc.

Of cause, after making your list, ensure it is stored somewhere accessable outside the home.... no point having the list just stored on your computers harddrive if the PC dies in the fire

expeditionist

Thanks, that's insightful.

I don't want to give too much personal info on the web, but my current insurance is with M&S and covers contents up to £100k, £25k of valuables, £10k single item limit. I didn't set those levels, they came as standard with the policy and those levels are high enough that I didn't need to provide a list of any items at all when I took the insurance out and I haven't done an inventory of any sort yet owing to my belief that a total loss is so unlikely.

InsideInsurance

Yes the M&S standard and premium are an Axa blanket cover policy and so is room rated rather than specified limit.

Even it isnt a total loss of your complete house could you actually list every single piece of jewellery you own(ed) if someone broke in and stole the jewellery box/ safe or wherever it is kept? Particularly when your stressed because you/ your partner doesnt feel the home is safe anymore?

expeditionist

I wonder how many people do have an idea the actual value of either all or most of their contents?

Why do insurers not make it clear about requirements and cover in this regard?

On a personal level, I'm gonna try and make an inventory and put it safe as you've suggested, I'll just list everything above £20-£30 I think.

Thanks

rs65

expeditionist wrote: »

So my question is, I’ve insured my contents for a standard amount and paid the premium. In the event of a total loss claim, why don’t insurers just pay out the amount you paid the premiums to insure? Is it not unreasonable of insurers to ask people to make an inventory when you've elected an amount of cover and paid the premiums for that amount?

You insure your contents - you don't select an amount at random.

If you had contents worth £10k and suffered a serious house fire, do you seriously expect them to pay out £100k just because you chose that amount?

Its up to you to insure for an appropriate amount to replace your contents with new equivalents.

If you have a claim it is up to you to prove what you had. An inventory of everything isn't essential but certainly useful.

A modern equivalent could be a wander round your house with a camera or video camera. This would actually help to prove you had the items whereas an inventory is just a list that anyone could make up.

Remember, its safe to assume that everyone has basic items such as sofa, tv, dining table, fridge. If you have anything out of the ordinary then it is in your interest to be able to prove their existence.

rs65

expeditionist wrote: »

Why do insurers not make it clear about requirements and cover in this regard?

They generally do. Many insurers have online tools to assist, such as:-

http://www.directline.com/home/calculator.htm

InsideInsurance

expeditionist wrote: »

I wonder how many people do have an idea the actual value of either all or most of their contents?

Why do insurers not make it clear about requirements and cover in this regard?

On a personal level, I'm gonna try and make an inventory and put it safe as you've suggested, I'll just list everything above £20-£30 I think.

Most people under estimate the value of their items, unlike car insurance where people tend to over estimate. Most tend to just add up the big items and forget that all their kitchen pots, pans, plates, utensils, socks, pants, makeup etc actually adds up to a surprisingly high amount of money when you have to consider high street new prices.

As others have pointed out, insurers do make it clear and do provide tools to help you.

Its worth doing the list and doing it at an appropriate level. For high risk items it is possibly worth having a lower threashold (eg jewellery) of what you list out. For low risk items (eg day to day clothes) then you can possibly use a higher threashold but ultimately your choice and needs to suit your lifestyle/ possessions.

SailorSam

I downloaded one of those things were you're suppose to go room-to-room and list everything, that was a couple of years ago now and it's still on my to-do list to fill in.
Not for insurance purposes though, i only have buildings cover, not contents.

*Scarlett

You can use an insurer's calculator to estimate the value of your contents.

In the event of a fire or flood the insurer will be able to see what you have at the property (and would know what a "normal" property would contain).

But if you have any high value items - jewellery, TV, AV equipment, collections etc - I would make an inventory of this (photos, valuations, etc). Proof of ownership would normally be required for theft claims for example.