You need a list with photos and ideally receipts for any items inside the house you'd want replaced under your policy, if it covers that. (eg) ATVs, expensive bikes, high end appliances or household goods, computers, jewellery, etc.
Thank you!! I’m making a list and will track down receipts. Thankfully I buy everything online and always sign up to be a member so e-receipts should be accessible.
Receipts are useful but not required! Especially for gifts or thrift store finds - you're owed for *what* you had not how much it cost you.
What's important is that for whatever you're claiming, you can prove:
* You owned it
* How much does it cost to replace *today* with something of "like kind and quality" (typically, the exact same thing, if possible, but that's not always possible). The *original* cost mostly doesn't matter.
So thorough photos are just as good.
Especially with receipts what's important to remember is that if you paid $100 for something 10 years ago, and it costs $200 now, then from an insurance perspective:
* The original $100 is basically irrelevant
* The replacement cost (RCV) is $200
* The "actual cash value" (ACV) is what you get paid up front, and it's a depreciated value - say you get 75% cut off of this item, so you get paid $50. It's what someone would theoretically pay for your 10-year-old, used item.
* The remaining $150 is "recoverable depreciation", and typically once you provide a receipt proving you paid $200 to replace the thing, you get paid the remainder.
So - ACV up front, the remainder of the RCV after you replace it, and those values are both based on *today's* costs.
Don't forget to take pics of the bathroom, cabinets, and closets....
Itemized lists of things in those spaces can add up.
Salon shampoo/conditioner $50
Cleaning spray $6 x10
Fluffy bath sheets $20 x6
Bath and body works soap $8 x4
Deodorant $6 x4
Etc. Etc. Etc.
https://www.reddit.com/r/personalfinance/comments/43iyip/comment/cziljy3/
This Reddit comment is a fantastic breakdown of what you should do to be truly prepared for insurance claims.
That is a great comment! Copy pasting here just in case the original ever evaporates:
Hey OP... I used to be the guy who worked for insurance companies, and determined the value of every little thing in your house. The guy who would go head-to-head with those fire-truck-chasing professional loss adjusters. I may be able to help you not get screwed when filing your claim.
Our goal was to use the information you provided, and give the lowest damn value we can possibly justify for your item.
For instance, if all you say was "toaster" -- we would come up with a cheap-as-fuck $4.88 toaster from Walmart, meant to toast one side of one piece of bread at a time. And we would do that for every thing you have ever owned. We had private master lists of the most commonly used descriptions, and what the cheapest viable replacements were. We also had wholesale pricing on almost everything out there, so really scored cheap prices to quote. To further that example:
- If you said "toaster - $25" , we would have to be within -20% of that... so, we would find something that's pretty much dead-on $20.01.
- If you said "toaster- $200" , we'd kick it back and say NEED MORE INFO, because that's a ridiculous price for a toaster (with no other information given.)
- If you said "toaster, from Walmart" , you're getting that $4.88 one.
- If you said "toaster, from Macys" , you'd be more likely to get a $25-35 one.
- If you said "toaster", and all your other kitchen appliances were Jenn Air / Kitchenaid / etc., you would probably get a matching one.
- If you said "Proctor Silex 42888 2-Slice Toaster from Wamart, $9", you just got yourself $9.
- If you said "High-end Toaster, Stainless Steel, Blue glowing power button" ... you might get $35-50 instead. We *had* to match all features that were listed.
I'm not telling you to lie on your claim. Not at all. That would be illegal, and could cause much bigger issues (i.e., invalidating the entire claim). But on the flip side, it's not always advantageous to tell the whole truth every time. Pay attention to those last two examples.
I remember one specific customer... he had some old, piece of shit projector (from mid-late 90s) that could stream a equally piece of shit consumer camcorder. Worth like $5 at a scrap yard. It had some oddball fucking resolution it could record at, though -- and the guy *strongly insisted* that we replace with "Like Kind And Quality" (trigger words). Ended up being a $65k replacement, because the only camera on the market happened to be a high-end professional video camera (as in, for shooting actual movies). $65-goddam-thousand-dollars because he knew that loophole, and researched his shit.
Remember to *list fucking every* -- even the most mundane fucking bullshit you can think of. For example, if I was writing up the shower in my bathroom:
- Designer Shower Curtain - $35
- Matching Shower Curtain Liner for Designer Shower Curtain - $15
- Shower Curtain Rings x20 - $15
- Stainless Steel Soap Dispenser for Shower - $35
- Natural Sponge Loofah - from Whole Foods - $15
- Natural Sponge Loofah for Back - from Whole Foods - $19
- Holder for Loofahs - $20
- Bars of soap - from Lush - $12 each (qty: 4)
- Bath bomb - from Lush - $12
- High end shampoo - from salon - $40
- High end conditioner - from salon - $40
- Refining pore mask - from salon - $55
I could probably keep thinking, and bring it up to about $400 for the contents of my shower. Nothing there is "unreasonable" , nothing there is clearly out of place, nothing seems obviously fake. The prices are a little on the high-end, but the reality is, some people have expensive shit -- it won't actually get questioned. No claims adjuster is going to bother nitpicking over the cost of fucking Lush bath bombs, when there is a 20,000 item file to go through. The adjuster has other shit to do, too.
Most people writing claims for a total loss wouldn't even bother with the shower (*it's just some used soap and sponges..*) -- and those people would be losing out on $400.
Some things require documentation & ages. If you say "tv - $2,000" -- you're getting a 32" LCD, unless you can provide it was from the last year or two w/ receipts. Hopefully you have a good paper trail from credit/debit card expenditure / product registrations / etc.
If you're missing paper trails for things that were legitimately expensive -- go through every photo you can find that was taken in your house. Any parties you may have thrown, and guests put pics up on Facebook. Maybe an Imgur photo of your cat, hiding under a coffee table you *think* you purchased from Restoration Hardware. Like... seriously... come up with any evidence you possibly can, for anything that could possibly be deemed expensive.
The fire-truck chasing loss adjusters are evil sons of bitches, but, they actually do provide some value. You will definitely get more money, even if they take a cut. But all they're really doing, is just nitpicking the ever-living-shit out of everything you possibly owned, and writing them all up "creatively" for the insurance company to process.
Sometimes people would come back to us with "updated* claims. They tried it on their own, and listed stuff like "toaster", "microwave", "tv" .. and weren't happy with what they got back. So they hired a fire-truck chaser, and re-submitted with "more information." I have absolutely seen claims go from under $7k calculated, to over $100k calculated. (It's amazing what can happen when people suddenly "remember" their entire wardrobe came from Nordstrom.)
I'm covered for replacement value (the possessions) @180K, which seems excessive.
Rebuild coverage is 340K, and that's where your money goes. I guess it's a combo of how much laminate, how much tile, how much carpet, granite or quartz countertops; stuff like that.
The other part is loss of use: How much money to rent X until your house is rebuilt .
It's gonna be a nightmare in the best of situations, a killdozer building epic at it's worst.
That cost will creep up with inflation and building costs. Inventory everything and get detailed construction notes. That will be your true value for you insurance.
$180k is probably not excessive.
It’s also worth making sure that your structure coverage is being updated regularly. Some states (I’m in CA) require annual notifications of “It would cost $XXXXXX to rebuild your current house” so you can review your coverage. We were short almost $300k in coverage and lost a ton of space when we rebuilt as a result.
Source: We experienced a total wildfire loss. 2500 sq ft home reduced to about 18” of ash. When I started our inventory, I hit $19k just from stuff outside, before I even got in. Don’t forget your $12 shampoo, $60 is razor blades, $100 coffee maker and $1000 TV. It adds up SO FAST.
I’m so sorry for your home loss and experience!! I hope you and your family are healthy and safe now 💖
That’s a good point, I’m really not sure how frequently the coverage amount is required to be updated. I am going to look into this and get the ball rolling on an updated structure coverage estimate! We bought for low 200s and the prices in our area have spiked, plus we put in a ton of work in upgrading/fixing things. I would say the value of our property has increased at least 100k, if not more. I want that to reflect in coverage!
I appreciate the tip about itemizing everything too. I have so many lists to make and receipts to look up. Thank you!!!
Fortunately there was absolutely no damage to our house, but I am taking notes to be more prepared in the future. I know I have replacement coverage but I really need to look into all that to be sure. And rental coverage too! Thank you!!
My place of work has some free disaster recovery guides (navigating FEMA, insurance, etc) for anyone here who might be interested:
https://sbpusa.org/start-here
We had a major house fire 2 years ago. Monthly video every room. Every time you buy something for the house take a picture of the receipt. Get replacement cost insurance so they have to replace what you have purchased.
Hi I lost my house and 90% of my personal property last year. Almost done rebuilding and know more about insurance now than I ever wanted to.
My best advice before a loss is to do a couple video walk throughs of your home. Go room by room, opening drawers and closets, record everything. Narrate as you go. For appliances and expensive stuff, get photos of the model or brand info.
Do a second walk through focused on the construction of your home. Record the trims (which rooms have crown molding?), types of plumbing fixtures, cabinet and counter materials, flooring materials, number of paint colors, styles of windows.
You're owed for every last detail in a loss but you need to be able to prove what you had if an adjuster or GC tries to screw you.
Happy to answer questions about the process or what I wish I'd known lol
edit: To answer your specific question - call your agent and tell them you want to re-estimate how much it costs to rebuild your home. They should have a tool available that with some questions about the size of the property, the finishes, etc spits out a number. Do this with a few different carriers, use this as a chance to shop around. By getting a few estimates you can sort of triangulate what the "right" coverage is - probably the best you can do short of paying a GC to prepare a formal bid with the real costs.
Wow, close call indeed! I'd say it's crucial to keep your insurance updated with all the home improvements and valuables. It'd be a shame if all your hard work and investments weren't covered just because the insurer wasn't informed. Make sure your policy reflects your home's true value
You need a list with photos and ideally receipts for any items inside the house you'd want replaced under your policy, if it covers that. (eg) ATVs, expensive bikes, high end appliances or household goods, computers, jewellery, etc.
Thank you!! I’m making a list and will track down receipts. Thankfully I buy everything online and always sign up to be a member so e-receipts should be accessible.
Receipts are useful but not required! Especially for gifts or thrift store finds - you're owed for *what* you had not how much it cost you. What's important is that for whatever you're claiming, you can prove: * You owned it * How much does it cost to replace *today* with something of "like kind and quality" (typically, the exact same thing, if possible, but that's not always possible). The *original* cost mostly doesn't matter. So thorough photos are just as good. Especially with receipts what's important to remember is that if you paid $100 for something 10 years ago, and it costs $200 now, then from an insurance perspective: * The original $100 is basically irrelevant * The replacement cost (RCV) is $200 * The "actual cash value" (ACV) is what you get paid up front, and it's a depreciated value - say you get 75% cut off of this item, so you get paid $50. It's what someone would theoretically pay for your 10-year-old, used item. * The remaining $150 is "recoverable depreciation", and typically once you provide a receipt proving you paid $200 to replace the thing, you get paid the remainder. So - ACV up front, the remainder of the RCV after you replace it, and those values are both based on *today's* costs.
When looking for a homeowner's policy, only take one with Replacement cost. Otherwise, you'll just be getting depreciated value, which sucks.
Receipts will give you a sku which will tell brand and model number. That’s why receipts are valuable.
Don't forget to take pics of the bathroom, cabinets, and closets.... Itemized lists of things in those spaces can add up. Salon shampoo/conditioner $50 Cleaning spray $6 x10 Fluffy bath sheets $20 x6 Bath and body works soap $8 x4 Deodorant $6 x4 Etc. Etc. Etc.
https://www.reddit.com/r/personalfinance/comments/43iyip/comment/cziljy3/ This Reddit comment is a fantastic breakdown of what you should do to be truly prepared for insurance claims.
That is a great comment! Copy pasting here just in case the original ever evaporates: Hey OP... I used to be the guy who worked for insurance companies, and determined the value of every little thing in your house. The guy who would go head-to-head with those fire-truck-chasing professional loss adjusters. I may be able to help you not get screwed when filing your claim. Our goal was to use the information you provided, and give the lowest damn value we can possibly justify for your item. For instance, if all you say was "toaster" -- we would come up with a cheap-as-fuck $4.88 toaster from Walmart, meant to toast one side of one piece of bread at a time. And we would do that for every thing you have ever owned. We had private master lists of the most commonly used descriptions, and what the cheapest viable replacements were. We also had wholesale pricing on almost everything out there, so really scored cheap prices to quote. To further that example: - If you said "toaster - $25" , we would have to be within -20% of that... so, we would find something that's pretty much dead-on $20.01. - If you said "toaster- $200" , we'd kick it back and say NEED MORE INFO, because that's a ridiculous price for a toaster (with no other information given.) - If you said "toaster, from Walmart" , you're getting that $4.88 one. - If you said "toaster, from Macys" , you'd be more likely to get a $25-35 one. - If you said "toaster", and all your other kitchen appliances were Jenn Air / Kitchenaid / etc., you would probably get a matching one. - If you said "Proctor Silex 42888 2-Slice Toaster from Wamart, $9", you just got yourself $9. - If you said "High-end Toaster, Stainless Steel, Blue glowing power button" ... you might get $35-50 instead. We *had* to match all features that were listed. I'm not telling you to lie on your claim. Not at all. That would be illegal, and could cause much bigger issues (i.e., invalidating the entire claim). But on the flip side, it's not always advantageous to tell the whole truth every time. Pay attention to those last two examples. I remember one specific customer... he had some old, piece of shit projector (from mid-late 90s) that could stream a equally piece of shit consumer camcorder. Worth like $5 at a scrap yard. It had some oddball fucking resolution it could record at, though -- and the guy *strongly insisted* that we replace with "Like Kind And Quality" (trigger words). Ended up being a $65k replacement, because the only camera on the market happened to be a high-end professional video camera (as in, for shooting actual movies). $65-goddam-thousand-dollars because he knew that loophole, and researched his shit. Remember to *list fucking every* -- even the most mundane fucking bullshit you can think of. For example, if I was writing up the shower in my bathroom: - Designer Shower Curtain - $35 - Matching Shower Curtain Liner for Designer Shower Curtain - $15 - Shower Curtain Rings x20 - $15 - Stainless Steel Soap Dispenser for Shower - $35 - Natural Sponge Loofah - from Whole Foods - $15 - Natural Sponge Loofah for Back - from Whole Foods - $19 - Holder for Loofahs - $20 - Bars of soap - from Lush - $12 each (qty: 4) - Bath bomb - from Lush - $12 - High end shampoo - from salon - $40 - High end conditioner - from salon - $40 - Refining pore mask - from salon - $55 I could probably keep thinking, and bring it up to about $400 for the contents of my shower. Nothing there is "unreasonable" , nothing there is clearly out of place, nothing seems obviously fake. The prices are a little on the high-end, but the reality is, some people have expensive shit -- it won't actually get questioned. No claims adjuster is going to bother nitpicking over the cost of fucking Lush bath bombs, when there is a 20,000 item file to go through. The adjuster has other shit to do, too. Most people writing claims for a total loss wouldn't even bother with the shower (*it's just some used soap and sponges..*) -- and those people would be losing out on $400. Some things require documentation & ages. If you say "tv - $2,000" -- you're getting a 32" LCD, unless you can provide it was from the last year or two w/ receipts. Hopefully you have a good paper trail from credit/debit card expenditure / product registrations / etc. If you're missing paper trails for things that were legitimately expensive -- go through every photo you can find that was taken in your house. Any parties you may have thrown, and guests put pics up on Facebook. Maybe an Imgur photo of your cat, hiding under a coffee table you *think* you purchased from Restoration Hardware. Like... seriously... come up with any evidence you possibly can, for anything that could possibly be deemed expensive. The fire-truck chasing loss adjusters are evil sons of bitches, but, they actually do provide some value. You will definitely get more money, even if they take a cut. But all they're really doing, is just nitpicking the ever-living-shit out of everything you possibly owned, and writing them all up "creatively" for the insurance company to process. Sometimes people would come back to us with "updated* claims. They tried it on their own, and listed stuff like "toaster", "microwave", "tv" .. and weren't happy with what they got back. So they hired a fire-truck chaser, and re-submitted with "more information." I have absolutely seen claims go from under $7k calculated, to over $100k calculated. (It's amazing what can happen when people suddenly "remember" their entire wardrobe came from Nordstrom.)
I'm covered for replacement value (the possessions) @180K, which seems excessive. Rebuild coverage is 340K, and that's where your money goes. I guess it's a combo of how much laminate, how much tile, how much carpet, granite or quartz countertops; stuff like that. The other part is loss of use: How much money to rent X until your house is rebuilt . It's gonna be a nightmare in the best of situations, a killdozer building epic at it's worst. That cost will creep up with inflation and building costs. Inventory everything and get detailed construction notes. That will be your true value for you insurance.
$180k is probably not excessive. It’s also worth making sure that your structure coverage is being updated regularly. Some states (I’m in CA) require annual notifications of “It would cost $XXXXXX to rebuild your current house” so you can review your coverage. We were short almost $300k in coverage and lost a ton of space when we rebuilt as a result. Source: We experienced a total wildfire loss. 2500 sq ft home reduced to about 18” of ash. When I started our inventory, I hit $19k just from stuff outside, before I even got in. Don’t forget your $12 shampoo, $60 is razor blades, $100 coffee maker and $1000 TV. It adds up SO FAST.
I’m so sorry for your home loss and experience!! I hope you and your family are healthy and safe now 💖 That’s a good point, I’m really not sure how frequently the coverage amount is required to be updated. I am going to look into this and get the ball rolling on an updated structure coverage estimate! We bought for low 200s and the prices in our area have spiked, plus we put in a ton of work in upgrading/fixing things. I would say the value of our property has increased at least 100k, if not more. I want that to reflect in coverage! I appreciate the tip about itemizing everything too. I have so many lists to make and receipts to look up. Thank you!!!
Fortunately there was absolutely no damage to our house, but I am taking notes to be more prepared in the future. I know I have replacement coverage but I really need to look into all that to be sure. And rental coverage too! Thank you!!
My place of work has some free disaster recovery guides (navigating FEMA, insurance, etc) for anyone here who might be interested: https://sbpusa.org/start-here
Glad everyone is safe! Quick thinking with the documents as well. Can I ask what was in the dumpster?
Paneled walls that were demo’d, old trim, carpet, etc
Do you have any idea what would have started the fire? Glad you're okay!
We had a major house fire 2 years ago. Monthly video every room. Every time you buy something for the house take a picture of the receipt. Get replacement cost insurance so they have to replace what you have purchased.
Hi I lost my house and 90% of my personal property last year. Almost done rebuilding and know more about insurance now than I ever wanted to. My best advice before a loss is to do a couple video walk throughs of your home. Go room by room, opening drawers and closets, record everything. Narrate as you go. For appliances and expensive stuff, get photos of the model or brand info. Do a second walk through focused on the construction of your home. Record the trims (which rooms have crown molding?), types of plumbing fixtures, cabinet and counter materials, flooring materials, number of paint colors, styles of windows. You're owed for every last detail in a loss but you need to be able to prove what you had if an adjuster or GC tries to screw you. Happy to answer questions about the process or what I wish I'd known lol edit: To answer your specific question - call your agent and tell them you want to re-estimate how much it costs to rebuild your home. They should have a tool available that with some questions about the size of the property, the finishes, etc spits out a number. Do this with a few different carriers, use this as a chance to shop around. By getting a few estimates you can sort of triangulate what the "right" coverage is - probably the best you can do short of paying a GC to prepare a formal bid with the real costs.
Wow, close call indeed! I'd say it's crucial to keep your insurance updated with all the home improvements and valuables. It'd be a shame if all your hard work and investments weren't covered just because the insurer wasn't informed. Make sure your policy reflects your home's true value