Prepare Before Disaster Strikes

After a fire, theft, or storm, you’ll need to prove what you lost. In the chaos following a disaster, remembering every piece of equipment, every item of inventory, every tool and fixture is nearly impossible. Preparing documentation now makes claims easier later.

Create a Property Inventory

Document everything your business owns. For each item, record: description, make/model, serial number, purchase date, purchase price, and estimated current value. Photographs or video provide visual evidence that supplements written records.

This task seems tedious until you need it. Then it becomes invaluable.

Store Documentation Off-Site

If your inventory records are destroyed in the same fire that destroyed your equipment, they don’t help you. Store copies in the cloud, at home, in a safe deposit box—anywhere that won’t be affected by the same disaster that triggers your claim.

Photos stored only on a computer in your office are at risk. Cloud backup provides accessible, protected documentation.

Keep Receipts and Invoices

Purchase documentation supports your claim. Original receipts, invoices, and credit card statements prove you owned items and establish their value. Organize these records so they’re accessible when needed.

For older items without receipts, photos, catalogs, or online listings for similar items can help establish value.

Review Your Coverage Annually

Your property values change over time. New purchases add value. Equipment ages and depreciates. Replacement costs rise with inflation. Annual coverage reviews ensure your limits reflect current reality.

Being underinsured is effectively being uninsured for the gap between your coverage and your actual values.

Understand Your Policy Terms

Know what’s covered and what’s excluded before a loss occurs. Understand your deductibles. Know whether you have replacement cost or actual cash value coverage. Surprises during claims are unpleasant.

Document the Damage

When a loss occurs, document everything before repairs or cleanup begin. Photograph damage from multiple angles. Keep damaged items until the adjuster has seen them. Make temporary repairs to prevent additional damage, but keep receipts and before/after photos.

Maintain Business Records

For business income claims, you’ll need to prove your income loss. Financial statements, tax returns, and accounting records establish your baseline. Protect these records as carefully as your property inventory.