Creating a Home Inventory After a Large Loss: A Guide for the Insured

Experiencing a significant loss due to a house fire or flood can be a devastating and overwhelming ordeal. Amid the chaos of dealing with structural damage to your home, it's crucial not to overlook the importance of documenting the loss of personal belongings (contents). While the primary focus might initially gravitate towards the visible damages, the contents of your home—from the baseballs in your attic to the computer in your study—hold both financial and sentimental value. This blog post is dedicated to guiding you through the process of creating a comprehensive home inventory for the contents portion of your insurance claim, focusing on steps to take after the initial loss has been reported to your insurance carrier.

If you are looking for Adjust Square's inventory template, scroll to the bottom of this blog post.

The Claims Process Timeline

Understanding the claims process is vital for navigating your way through this challenging time. Typically, the journey looks something like this:

1. You notify your insurance provider (first notice of loss or FNOL).

2. Your claim is assigned to an adjuster.

3. The adjuster, in turn, coordinates with a restoration company, an independent adjusting (IA) firm, or inventory specialists to visit the site of loss and record loss details.

4. They assess the damage and conduct a detailed inventory of lost items, resulting in an inventory spreadsheet that is shared with you.

5. An estimate is created from this inventory and a settlement offer is made.

6. You may want to negotiate your settlement before accepting it.

7. After accepting your settlement and depending on your policy, you may enter the recoverable depreciation period.

8. You can re-purchase lost items and submit receipts to recover depreciation that may have been withheld from you.

   
   

Our focus today zeroes in on the pivotal step of reviewing the initial inventory spreadsheet provided by the specialists, since this step is crucial in producing an accurate and high-quality estimate.

Reviewing the Initial Inventory Spreadsheet

Receiving and scrutinizing the initial inventory spreadsheet is a critical step. The accuracy and completeness of this document directly impacts the eventual estimate of your claim. It is essential to:

Verify Product Details: Ensure all item details are accurate and legible, particularly if the inventory is handwritten. Incorrect or unreadable entries could lead to default values that may not reflect the item's true worth. Confirm the quantities and aging information, as discrepancies or inaccuracies could be result in a lower settlement offer.

Check for Completeness: Missing items are not uncommon, especially when specialists might not recognize or find everything due to damage severity. Pay particular attention to items that could have been rendered unrecognizable.

Prioritize Valuable Items: High-value items require your utmost attention. Strengthen your position by having receipts, detailed product descriptions, and accurate condition and aging information on hand. These details are vital during settlement negotiations.

How to Fill-in Common Inventory Fields

Familiarizing yourself with the inventory spreadsheet's fields can streamline the process:

Room: Indicate where each item was located. When the estimate is returned, it will likely be organized by room.

Brand: Specify the manufacturer of the product. If this field is missing, include it in the item description. For example, if the item is a pair of running shoes, Nike might be the brand, but the original source could be Amazon (if you bought it on Amazon). In this example, you would put "Nike" as the brand.

Original Source: Specify the retailer of the product. If this field is missing, include it in the item description. For example, if the item is a baseball, Rawling's might be the brand, but the original source could be Dick's Sporting Goods. In this example, you would put "Dick's Sporting Goods" as the original source.

An example of how brand and original source differ when it comes to online retailers.

Barcode/Model#/SKU: Providing these details increases the chance of an exact match but is not guaranteed.

Item Description: The most crucial part of your inventory process. It serves as the foundation for estimating the replacement cost of each item and directly influences the accuracy of your claim. Here’s how to approach it:

• Be Detailed and Precise: The essence of a good item description lies in its detail and precision. Aim for descriptions that allow anyone (including the estimator or the insurance adjuster) to visualize and understand exactly what the item is, without any ambiguity.
  
  

• Examples for Clarity:

  • Correct Example: "Official White OLB-3 Baseball" offers a clear, searchable term that directly leads to the specific item, ensuring the estimator finds an exact match or a very close alternative.

  • Incorrect Example: "My son’s baseball, used twice" is vague, sentimental, and unsearchable. This lacks the necessary details for accurate replacement and could result in an undervalued estimate.

    
    

Taking your time to correctly describe an item can lead to significantly improved outcomes for your estimate.

• Searchability is Key: A strong item description is one that, when searched into Google, returns the correct item or many close matches. If the search results are broad or unrelated, the description needs work. The goal is to avoid writing descriptions that could lead to a wide array of unrelated products.
  
  

• Conciseness Matters: While detail is important, efficiency in your words is equally valuable. Avoid unnecessary adjectives or backstory that don’t contribute to identifying the item. Each word should serve the purpose of narrowing down the search to your exact item.
  
  

• Comprehensive Details: In cases where model numbers, SKUs, or barcodes are missing, the item description should compensate by being as descriptive as possible. Include brand names, specific features, and any unique identifiers that can distinguish the item from similar ones, if you haven't already included these details in other columns (try not to repeat data).

Quantity: Specify how many units of each item you lost.

Age: It's important to balance precision with practicality. You may not remember the exact purchase month of every item, and that's okay. Provide the best estimate you can without overstressing about absolute precision for every single item.

Condition: The condition of an item before the loss occurred plays a significant role in determining its current value and, consequently, the insurance payout. The common conditions to choose from are:

• New: Indicates the item was recently purchased and had not been used, or is in an unused state. Items in 'new' condition often receive no depreciation in value.

• Above Average: Suggests the item was well-maintained and in better condition than most items of a similar age and type. Less depreciation is applied.

• Average: The item shows signs of normal wear and tear for its age. This is the baseline condition, with standard depreciation rates applied.

• Below Average: Indicates the item was in a state of disrepair or had significant signs of use beyond what is typical. Additional depreciation is applied, reflecting a lower settlement value.

Being honest about the condition of your items is key. Overestimating the condition can lead to disputes or delays in your claim, while underestimating it might result in lower compensation. Aim for a truthful assessment to ensure a fair and smooth claims process.

Estimated Price: Though optional, listing what you paid (pre-tax) helps the estimator but does not ensure an exact match.

Create your inventory using Adjust Square's home inventory template to ensure that you've covered all of the inventory data your insurance provider will need to produce the most accurate estimate for you.

A Quality Inventory Sheet Results in a Quality Estimate

After experiencing a significant loss such as a house fire or flood, the task of documenting every item lost is pivotal for securing a fair and just insurance settlement. This process, while meticulous, underlines the importance of a detailed home inventory, ensuring every personal belonging, from the smallest utensil to the most valuable piece of technology, is accounted for. The effort you invest in accurately listing the descriptions, quantities, ages, and conditions of your items directly impacts the outcome of your insurance claim, facilitating a smoother and more efficient settlement process.

For anyone who might need assistance in compiling their home inventory, Adjust Square provides a comprehensive home inventory spreadsheet designed to capture all essential details, simplifying the documentation process for your insurance claim. Our inventory template contains over 15,000 top brands and vendors for you to choose from, helping you detail your inventory with ease:

Create optimal inventories for estimation using Adjust Square's inventory template. Choose from 8,000+ brands and 7,000+ suppliers to boost the accuracy of your estimates and speed up your inventory workflow.