To start, there are three highly useful actions that will make finding home insurance easier.

1. Be Well Educated

When shopping for homeowners insurance it is important to be as well educated as possible. Read each policy and find out exactly what their coverage includes.

2. Have A Pro Guide You…

Have an insurance agent or representative help you select which home insurance best fits your needs.

3. Ask Questions

Never assume anything. Always ask questions to be certain if something is included in the policy. The following questions below are important questions that should be asked when shopping for insurance policies.

What Are the Liability Limits of the Policy?

The purpose of home insurance is to protect your home in case something happens. Therefore, one of the most important questions to ask is how much coverage is included in case something happens? Insurance policies usually start off around $100,000 and can be purchased at higher rates from there (A higher rate is usually recommended). You can estimate the rebuilding cost of your home by multiplying your homes square footage by the building cost per square foot.

Rebuilding Cost = Home Sq. ft.  X Cost per sq. Ft.

To estimate an accurate total of the cost to rebuild a home from scratch be sure to know the neighborhood value and construction fees.

What Does Liability Protection Cover?

With most home insurance policies you’ll also receive liability protection. This will usually cover lawsuits for bodily injury, property damage, etc caused by home residents. It will usually include any damage from pets as well. It is important that you know the limits of this protection and the exact policy in case something did happen (such as if you’ll be defended in court, etc).

In Case of a Loss, What Personal Property Will Be Covered?

All home insurance policies should include replacement of personal property in the case of a disaster, fire, or theft. Most policies will cover a percentage (usually above 50%) of the total insurance you have on your home.

Do not assume you’ll be reimbursed for everything you own. In the likelihood of an emergency you’ll be required to provide a home inventory of all possessions lost. If you didn’t create one before the disaster, there will be a few problems…

1. You’ll have to remember everything you owned (very hard, if not impossible)
2. You may have to provide proof of ownership for expensive items
3. Your policy may not be high enough to cover everything you lost

To remedy these problems, be sure to create a home inventory. Our software, DocuHome, has an advanced tagging function that makes creating a home inventory easy, fast, and visual.

What is the ALE (Additional Living Expenses) Policy?

The Additional Living Expenses policy covers your living expenses if you can’t live in your home (due to damages, disaster, etc). This should cover your meals, hotel bills, etc. Find out what percentage of the dwelling protection the coverage is.

Will You Need Specialized Coverage?

For most insurance policies, flood and earthquake coverage is not included. Most policies will only cover fire and water damage from gas and water pipes. If you live in an area prone to these problems it may be smart to check specialized coverage plans.

Are Discounts Available?

Most home insurance policies offer discounts for homes with security measures (alarm systems, specialized locks, smoke detectors, etc). Find out what exactly qualifies you for discounts and how you can use this to your advantage.

Data provided by ActiveRain.com. Join 215,590 Real Estate Agents on the world’s largest Real Estate Social Network.

When damage to your rental does occur, you must be able to determine the source of the damage, and then deal with the problem swiftly. In order for this to happen, vacation rental owners must follow a set of guidelines. These guidelines will help them isolate the source of the damage so they can take action.

Create a Full Inventory of the Home
Before you start renting the home, create an inventory that lists every item in the rental property. In addition, list the condition of the items. Make sure you go through every room of the home when compiling the list. Every item should be included in your inventory.

Take Pictures
Keep up to date pictures of the home’s inventory. Visual proof is important. In addition, have the housekeeper take a picture if an item is damaged. This can be helpful in recovering damages. Before and after pictures will make it easy for you to prove the extent of the damage.

Have Your Real Estate Photographer Create a Photographic Inventory with DocuHome.

Is a Home Inventory Needed for an Unfurnished Property?
The short answer is YES. Even if a property is deemed as unfurnished, there will still be items that can be damaged and costly to replace e.g sinks, carpets, condition of walls etc.

Consequently, it is still crucial to have a detailed inventory.

Keep Your Inventory Updated
Make sure the housekeeper updates the inventory with any changes that occur. If an item is missing, it should be removed from the inventory. In addition, items that are brought into the home should be added to the inventory. Changes in the condition of items should also be noted. The inventory must be current in order for it to be useful.

Full Inspections
In most cases, property owners do not have access to the vacation rental on a daily basis. Because of that, they need to have their housekeeper thoroughly examine the property after each traveler leaves. They should check the items in the vacation rental property against the items listed on the inventory sheet. Housekeepers should report any damaged or missing items immediately.

In addition, houseguests should inspect the home upon arrival. Provide renters with a checklist they can use for the inspection. Have renters go around the home and check for damages. Have the housekeeper review the list of reported damages and compare it to the inventory.

Create the Line of Communication
Inform renters that they should contact you if they damage anything in the home. They are more likely to contact the property owner if it is requested of them. By opening the lines of communication, the collection process will be much easier.

Unless property owners can isolate the source of the damage, they will not be able to charge renters. Thus, these steps are essential. Take the time to create an inventory and then make sure the home is checked thoroughly between renters. This will save you a great deal of headaches in the future.

Fast Facts:

• Nearly 47,000 fires occur during the winter holidays claiming more than 500 lives, causing more than 2,200 injuries, and costing $990 million in property damage.**

• On average, one of every 22 home fires started by Christmas trees result in death.***

• Candle fires are four times as likely to occur during the winter holidays.**

• During the winter holiday season, an average of 40 home fires per day are caused by children playing.**

• Having a working smoke alarm reduces one’s chances of dying in a fire by nearly half.**

Preparedness Tips

• Place Christmas trees, candles, and other holiday decorations at least three feet away from heat sources like fireplaces, portable heaters, radiators, heat vents and candles.

• Purchase flame retardant metallic or artificial trees. If you purchase a real tree, make sure that it has fresh, green needles that aren’t easily broken. Keep live trees as moist as possible by giving them plenty of water.

• Make sure that light strings and other holiday decorations are in good condition. Do not use anything with frayed electrical cords and always follow the manufacturer’s instructions.

• Always unplug tree and holiday lights before leaving home or going to bed.

• Never use lit candles to decorate a tree. Always extinguish candles before leaving the room or going to bed.

• Use only sturdy tree stands designed not to tip over. Keep curious pets and children away from Christmas trees.

• Keep anything that can catch on fire—pot holders, oven mitts, wooden utensils, paper or plastic bags, food packaging, and towels or curtains—away from your stove top.

• Designate one person to walk around your home to make sure that all candles and smoking materials are properly extinguished after guests leave.

• Smoke alarms save lives. Install a smoke alarm near your kitchen, on each level of your home, near sleeping areas, and inside and outside bedrooms if you sleep with doors closed. Use the test button to check it each month. Replace all batteries at least once a year.

Sources: American Red Cross,* U.S. Fire Administration,** and the National Fire Protection Association.***

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5:45am November 24, 2007 changed our lives forever.

We awoke to a fire in our canyon. Notified by phone from a friend around 4:00 am, we packed a suitcase planning on being evacuated for the second time in just a month. When we left our house that early morning we had no idea we would never see our house or our personal belongings ever again. Once that happens, the shock and tears begin at once and they last for months.

The struggle to deal with an insurance requirement, a home inventory of personal property losses, proved to be a long and daunting task that took me almost six months to complete. Luckily, I had asked Brad to take photos of our house about two weeks before the fire. The ability to look back at the photos to help compile an inventory of our personal property as well as the home improvements that had been made to our house was very helpful. After your life has turned upside down you just don’t have the wherewithal to make inventory lists from memory and you do not get paid for your personal property without one.

Stanley Residence, 2007 Corral Canyon Malibu Fire

Knowing what I know now from experiencing this tragedy first hand, I wish our photos would have been even more detailed. My husband, Brad, founded DocuHome as a service to help others prepare for an event such as ours. I hope you never need it, but speaking from experience, it is necessary to have.

Your home and its furnishings are normally your greatest possessions. Taking stock of your real and personal property not only provides a measure to compare your insurance coverage by, it also allows an individual to gain a true perspective of what your possessions mean to you.

In conclusion, we hope that you will never experience the loss of your home. However, if a loss should occur, a DocuHome home inventory will make the difference between an inadequate restoration of your home and its furnishing and gaining all that is rightfully yours from your insurance policy.

Anita Stanley
Please Start a Home Inventory TODAY!

Red Cross are First Responders

About the Founder/CEO of DocuHome
Born out of need and compassion, founder Bradford Stanley–who suffered a total loss in the Corral Fire in Malibu 2007–concluded people need to be better prepared for a loss of property from his own personal experience and his neighbors’ circumstances. Without proof of ownership, insurance companies often won’t pay to cover the costs of replacing personal assets. Thus, DocuHome specifically devised software applications to record, inventory, calculate and store client personal property or business inventories and assets.

DocuHome’s mission is to give people the power to be more prepared for a loss of property from fire, theft or other causes.

Your vacation rental property is an investment, and thus it is important to protect it. Along with insurance, one of the best ways to protect your home is with a home inventory. Once your inventory has been printed out, have your tenant review, note the existing condition or damages throughout the home, and sign off on upon move in.

Photos are the best way to document the condition of furniture, carpet, walls, finishes, appliances and the overall condition of your vacation property. This is something you can do yourself or hire an inventory service professional to prepare the inventory.

Vacation Rental Home Inventory Tips

• The more valuable items like furniture, electronics, appliances, and carpet should be captured with photography, so there is no question of their condition. Learn more about creating a FAST, SIMPLE, SECURE home inventory.

• Make sure the housekeeper updates the inventory with any changes that occur.

• Landlord/Agent and tenant(s) should sign the home inventory and initial every page to signify agreement.

• It’s imperative that the inventory is checked immediately before the tenant leaving, so there can be no argument about any damage occurring after the tenant has gone.

What Happens if There is a Dispute?

• If there’s a general consensus between the parties on what has been damaged, then estimates should be drawn up for repairs/replacements.

• If the deposit doesn’t cover the amount needed to carry out the repairs, an invoice itemising all costs involved for additional payments should be sent to the tenant.

• If the tenant is insured, this evidence should be provided for the insurance company.

Is a Home Inventory Needed for an Unfurnished Property?
The short answer is YES. Even if a property is deemed as unfurnished, there will still be items that can be damaged and costly to replace e.g sinks, carpets, condition of walls etc.

Consequently, it is still crucial to have a detailed inventory.

Insurance Tips

• Purchase enough coverage to protect the value of the property and assets.

• Make sure that a homeowners policy covering your primary residence extends liability coverage to your vacation or rental property. You may have to purchase a separate policy.

• Check the amount of liability insurance to make sure that you have adequate coverage. There is a higher risk of accidents associated with a rental property than with your own home.

• Consider purchasing extra liability insurance, also known as a Personal Umbrella Policy. This can increase the liability coverage on your home up to $1 million or more.

If you hope to make a little extra cash this holiday season renting your vacation home, first review your insurance policy, then take the time to create an inventory. This will save you a great deal of headaches in the future.

Find out how much coverage you have for “Additional Living Expenses.” If your home is destroyed by an insured disaster, such as a hurricane, this would be for additional costs, such as hotel costs, while your home is being repaired. If you rent out part of your home, it would also replace lost income for the time you would not be able to collect rent. Many policies provide coverage for 20 percent of the amount of insurance you have on your house and may be for a specified time period. Additional coverage is generally available for an extra premium.

Stanley Residence, 2007 Corral Canyon Malibu Fire

2. Get the Right Type of Policy
Ask about flood insurance. Flood damage is not covered under standard home insurance policies. Insurance is available from the National Flood Insurance Program (NFIP). The policy, however, can be purchased from the same agent or broker who provided your home or renters insurance policy. Additional information can be found on www.floodsmart.gov. Excess flood insurance is also available from private insurance companies if you need more coverage than the NFIP provides in its policies.

Look into getting a guaranteed or extended replacement policy for the structure of your home. These policies provide additional insurance coverage over what it should cost to rebuild your home. A guaranteed replacement cost policy would pay to rebuild your home regardless of cost. Increasingly, however, insurers are offering extended replacement cost policies, which provide 20 percent or more over the limits in your policy.

Ask about replacement cost for your belongings. When insuring your possessions, you have two coverage choices. One is Actual Cash Value which replaces your possessions less depreciation. The other is replacement cost coverage which replaces your property in today’s dollars – without a deduction for depreciation. It costs about 10 percent more, but provides much better coverage.

3. Compile a Home Inventory
Have an up-to-date inventory of all of your personal property. A home inventory will help you purchase enough insurance to replace your possessions, speed the claims process and will substantiate losses for income tax purposes.

DocuHome Home Inventory Application

4. Create an Emergency Evacuation Plan
Plan ahead and practice so that your evacuation is smooth and fast. In an emergency you may have only a few minutes to gather your family and important documents and leave your home, possibly for good. Have the following ready to go:

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Red Cross are First Responders

5. Disaster Proof Your Home
Install storm shutters to protect your windows or use plywood panels which can be nailed to window frames when a storm approaches.

Make sure exterior doors should have at least three hinges and a dead bolt lock that is at least one-inch long. Sliding glass doors should be made of tempered glass and covered with shutters or plywood.

Replace old garage doors and tracks with a door that is approved for both wind pressure and impact protection, since garage doors are highly susceptible to wind damage.

Having gone through several fires in Malibu, the Corral Canyon Fire on November 24, 2007 was the one that destroyed my home. IMPORTANT: Homeowners don’t realize that an itemized list is required by your insurer after a loss. Plus, if I had compiled a list prior to my loss, I would have realized I was under insured! This was my families OMG moment.

Along with protecting your assets, DocuHome will bring more peace of mind into your life.

Please see the disclaimers below.
Any potential exclusions/limitations shown on this site are intended to be hypothetical examples and educational in a general nature only. They are not intended to represent an exhaustive list of actual exclusions present or not present in any insurance policy. Carefully read your policy as the definitions, coverages and limitations contained in your policy supersede any information provided on this website.

1. Read everything carefully before you sign anything. Your insurance company’s representatives will first present you with emergency money – for immediate needs and shelter. The second round of payouts is where you need to be careful. Do not sign anything that limits your rights to seek additional proceeds.

2. Find a copy of your insurance policy. If it is destroyed or is not accessible, you should be able to get a full copy of the original insurance policy with all of its endorsements from the agent who sold you the coverage.

3. Make sure your family is safe. Most insurance policies include language that enables you to find a residence similar to your existing one. Find a hotel or rental home close to work or your kids’ school that is adequate in size and clean and comfortable. Find a place similar in size and accommodations to your previous residence.

4. Get some professional help. Insurance companies hire and train their adjusters to represent the interests of the insurance company and ultimately, its investors. In many instances those adjusters do a great job helping their policyholders. However, sometimes their adjusters are too keenly focused on the bottom line of the insurance company instead of paying the policyholder what they are rightly due under the terms of their insurance policy. If you have doubts about what your insurance company is telling you, or you are simply do not have enough time and expertise to completely value and settle your claim, contact a professional that will work for you and will only represent your best interests.

5. If you go it alone, go slowly and take your time. The insurance company may pressure you to speed up the process – you may be anxious to put all of this behind you as quickly as possible in order to get back to your life, but you need to resist that urge. In these types of cases, especially with homes that have many improvements and renovations, or with families with lots of possessions, haste definitely makes waste. Take your time and carefully review each and every document before signing anything. If you don’t agree with the estimates for repair or replacement provided by your insurance provider, fight back.

Why use a Public Insurance Adjuster?
In many cases, the Public Adjuster is able to get more money from the Insurance Company than you will be able to on your own. Even after deducting the Public Adjuster’s small percentage fee (much less than using a lawyer), you will probably still come out ahead.

For most families affected by a disaster, the biggest advantage of using a Public Insurance Adjuster is that they can get back to living their life while a professional handles all of the details. Instead of spending 20 hours or more a week, researching replacement and rebuilding costs, analyzing and completing various forms, and negotiating with insurance company adjusters and restoration experts, the Public Adjuster can do all of that. This means you can get back to your family life. Normalcy and a return to a routine schedule will greatly help you and your family adjust and move on.

For many, the time savings and the emotional satisfaction of having a professional handle the minutiae and painful negotiations is much more important than whatever added funds the adjuster is able to get for them. It’s more than just the money.

Ron Reitz is president of San Diego-based Quality Claims Management Corp., 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). He is the past president of the California Association of Public Insurance Adjusters and currently serves on the board of the National Association of Public Insurance Adjusters.

Contact Quality Claims Management at (866) 450-1183 or http://www.qualityclaims.com.

Do your best to portray each room to its best advantage. You want to highlight the room’s assets, not detract from them. Imagine you’re getting your home ready for sale and do everything you would to make it look its absolute best. This includes de-cluttering, organizing and cleaning. Remember, you’ll be shooting the contents of closets and drawers, as well.

Remember, if you lose everything in a fire, you’ll have to replace cooking utensils, kitchen appliances, silverware, personal grooming items and many more items too numerous to mention. Include the outside of the house, garden tools, plants, swimming pool, patio furniture and even landscaping. Remember insurance companies require you to compile an inventory for each item in your home.

Room Preparation Basics:

What Should I Photograph?
Simple answer: EVERYTHING! Start in one corner of the room and work your way around until the whole room has been covered. For insurance purposes, it is good to show as much of the room as you can. Outbuildings and garages and their contents should also be included. Tools from the lowly screwdriver to table saws, generators, lawn motors and sewing machines shouldn’t be left out either.

Get the Details
Show the finishes, hardware, windows, cabinets, floors, name brands on appliances. Do close-up shots of special collections and other big ticket items.

Photograph the Exterior
The landscaping of your property, including any special features such as ponds, fountains, patios and decks. Make sure you contact your insurance agent to see what your policy covers. Certain things like rare trees or shrubs and unusual landscaping aren’t considered personal property, but it will be helpful to have a record of their appearance in case of a loss.

Keep Your Photos Out of Harms Way!
After you’ve taken the photos for your home inventory, getting these photos out of harms is equally as important. Learn more about storing your photos, important documents, medical information and more, visit… www.DocuHome.com

Attention Digital Photographers…
The DocuHome reseller program is now open for applications from interested firms and individuals in North America. In many cases, DocuHome can fit into and enhance how you do business today. It is useful and valuable for almost any homeowner and business. To learn more visit our Reseller Page

Become a DocuHome Inventory Specialist

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**NOTE: Please excuse the commercial. The DocuHome segment appears at the 3:00 mark