Suze Orman Warns Homeowners Are ‘Setting Up For Hurt’ If They Don’t Buy Smart Insurance.

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Don’t risk getting into financial trouble if things aren’t going well at home.

Key points

  • Homeowner’s insurance covers personal property.
  • Homeowners need an inventory of their property.
  • Suze Orman says homeless homeowners are “creating pain.”

Homeowners insurance can provide the necessary protection. Not only does this type of coverage cover the cost of repairing or rebuilding a home if something goes wrong, but it also covers the loss of personal property in the home.

Unfortunately, many homeowners fail to take steps to ensure they are fully compensated for all their losses in the event of a fire or other covered disaster. Economist Suze Orman recently warned about this issue on Facebook.

This is what Suze Orman says many homeowners are missing

According to Suze Orman, homeowners are “putting themselves in trouble” if they don’t list the items they keep in their homes.

Orman’s Facebook post warned that nearly half of homeowners are missing this type of product and went on to explain why this is a big problem. As he made clear, any home insurance agent “will want to see proof that you have the property you want to cover.”

See, if the property in the house is damaged, the insurance will cover the cost as long as you have the proper property damage protection. But insurers don’t just take the homeowner’s word for what was in the home and what the insurer should pay. As Orman said, homeowners will need to provide proof of all the losses before paying the insurance.

Although technically it may be possible to make calculations after disaster strikes, Orman doesn’t think this is a good option.

“In a time of loss and chaos, it will be difficult to imagine the list of all that you have lost,” he said. “Now is the time to do that inventory. When you’re quiet, you can carefully make notes and pictures of your household goods and collect all receipts for major purchases.”

How to create a home directory

The advice from Orman is very good and all owners should heed his warning about the problems of homelessness.

Unfortunately, it can seem difficult and difficult to count all of the things you have. The good news is, there are tools to help. Many insurance companies have forms on their websites such as home listings that homeowners can use to make the process easier. There are also programs that allow the creation of digital tools by taking a picture of the items in the house and specifying the date of purchase.

For large purchases, it’s a good idea to make sure all receipts are available as well. This can be saved electronically by taking pictures and storing them in a special folder on the computer or in the cloud.

When making an inventory, it is important to make sure and include all the items in the house including, for example, the tools in the shed. Starting with one room and working on listing things – especially the expensive ones – can also help make the process easier.

While this may seem like a big deal, as Orman points out, doing it before an accident can save a lot of trouble later.

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