The Truth About Insurance Claims: Why Accuracy Matters More Than You Think

You would think that being honest and accurate would be a given when making an inventory list to submit for insurance compensation. After all, you're essentially swearing that the list is true and accurate, or you could face legal consequences.

But there are several reasons why policyholders don't always get it right.

The Fraud Factor

One reason, though not very common, is outright fraud. Some unscrupulous people think they can deceive the insurance company in this scenario, especially if items have been destroyed and there's no physical evidence left behind. Some people will claim to own things they never actually owned, such as a Rolex watch or Prada jacket. Insurance companies are on high alert for exactly this type of behavior, and they have sophisticated methods to uncover false claims.

The More Common Culprit: Guessing

But the more common reason why someone may submit an inaccurate list is simply because they guessed too much. Instead of doing proper research, overwhelmed policyholders guess at the brands, values, and ages of the items they owned. After all, who can possibly remember all of those details after a loss?

This is NOT a good move. Insurance companies would prefer to minimize payouts whenever possible, so don't give them a reason to flag your claim and send you to their fraud investigation department. Even honest mistakes can trigger red flags that delay or reduce your settlement.

How to Create an Accurate Inventory

Take the time and make the effort to compile your list as accurately as possible. The devil is in the details:

• Don't list "flat screen TV" – list "Sony Bravia 43-inch LED TV, 2022 model"
• Instead of "winter coat" – specify "North Face Summit Series down parka, black, size large"
• Rather than "laptop" – write "Dell XPS 15 laptop, 512GB SSD, purchased March 2023"

Not only will specific details keep your list from being red-flagged, but you'll also have a clearer idea of what your items are actually worth and can negotiate from a position of knowledge. If you cannot find your exact item during your research, then you can use a similar item of like kind and quality as a reference point.

The Good Faith Standard

It's true that no list can be perfect because no one can truly remember every single item they owned. But what the insurance company expects from you is an accurate list submitted in good faith. This means you made a genuine effort and would swear that, to the best of your knowledge, the list accurately represents your contents. Good faith means you didn't lie about or misrepresent your items on purpose.

Think of receipts, credit card statements, photos, and even social media posts as valuable documentation tools. Review old emails for purchase confirmations. Check your bank statements for recurring purchases. These resources can jog your memory and provide proof of ownership.

Why It Matters to You

In the end, you want to give this process your best effort—not only for the insurance company's sake, but for yourself too. Making an accurate, well-documented list is fair to yourself. It ensures you get paid fairly and have adequate funds to replace your items and rebuild your life after a loss.

Your claim is your opportunity to recover what you've lost. Don't shortchange yourself by rushing through it, and don't jeopardize it by being careless. The time you invest in creating a thorough, honest inventory will pay dividends when your settlement arrives.