Inventory

Inventory can be considered as the assets held for sale in the ordinary course of business, or in the process of production, for such sale or supplies to be consumed in the production process, or in the rendering of services.

Business will track inventory by the process of record keeping. Often the inventory limit allows for a 25% seasonal variation. Your commercial policy can be endorsed to provide coverage for the cost of restoring your valuable papers and records, after you have had a claim, such as a fire.

An example of such a seasonal allowance, would be for a retail store carrying Christmas decorations and children's toys. It is logical that there would be an increase in the value of the inventory at this time.

Inventory can also relate to the contents of a person's dwelling. Examples of personal property would include clothing, sporting equipment, appliances and even the food in the refrigerator.

If you have a claim, then you are required to list the items that need to be repaired or replaced. Having accurate records is extremely helpful. This is fairly straight-forward if you have a business. Especially, if all your records are backed up and kept current at an off-site location.

If it is your personal property, then you will also have to list the items and give realistic replacement values. This can be difficult at the best of times, and is even more traumatic after a loss.

If you have a friend's property at your home, then it will not be covered under your policy. It may be covered under the friend's policy, but they would have to present their own claim with their own insurer.

Business insurance can have coverage for the property of employees and the property of customers. Check your wordings to see just what you do have on your policy.

Is your inventory records up-to-date? If you do not want to write down all of the information, then you can download inventory programs. You can also take pictures or video of your possessions to assist you at a later date.

Confirm whether you have "actual cash value" or "replacement cost" on your inventory. Be aware, that if you have a store that the value of the stock is what you paid for it. You will not receive compensation including a profit margin.

Knowledge is power. The more complete your information, then the greater satisfaction you will have during a claim.