One of the biggest mistakes that people make when getting insurance for their household possessions is not making an inventory of everything they own. That’s because if a claim does have to be made, the insurance companies are going to want proof and not just your word:
Without documentation, one of two things will usually happen when you file a claim; both are to your disadvantage:
1. You simply can’t remember all of your possessions and file a claim based on what you can remember at that time. Since this is a time of high stress, you will most likely forget a large number of the items you owned and won’t receive the full amount you are due. (This can become even more frustrating as time goes by and you remember more things you owned but forgot to claim.)
2. You try to claim everything that you owned, but because you have no documented proof, some of your claims are denied by the insurer.
In the digital age, there is no reason not to make a digital inventory and it will only take about an hour to do so. You can see how in my latest article at TheStreet.com