Filing an insurance claim is never easy. What makes it even worse? Fighting for the compensation you rightfully deserve, only to be short-changed—or worse, denied—due to incomplete or inaccurate inventory records.
What is the potential financial impact of incomplete documentation on your claim? What constitutes an effective inventory system? Most importantly, can accurately stored inventory lists decide the fate of your insurance claims? With 25 years of experience in the public insurance industry and over $4 billion in successful settlement collections for our clients, we know the answer is yes.
Why Inventory Lists Matter in Insurance Claims?
When filing insurance claims, the burden of proof rests on the policyholder. Insurers require adequate proof of the damaged or lost items, including their value, condition, and ownership. Here, an accurate inventory list acts as vital documentary evidence supporting your claim. It, along with accompanying documents, can make the claims process much smoother.
Without it, businesses risk undervaluation or outright rejection of their claims. For complex commercial enterprises, this can result in millions in unrealized compensation. Clearly, an accurate inventory list is the foundation of successful claims.
A 2023 report by the Insurance Information Institute (III) found that only 47% of participants had prepared an inventory of their possessions to document losses for insurers. This highlights the significant risk of receiving claim settlements far below actual losses due to inadequate inventory documentation.
Key Components for an Effective Inventory System
To ease the insurance claims process, an effective inventory list should contain the following details:
- Item Descriptions – Complete, clear, and concise descriptions of every item, including make, model, and specifications.
- Quantity and Value – Clearly list the number of units and their individual and total values. For high-value commercial assets, include appraisals or third-party evaluations.
- Purchase Dates and Receipts – Proof of purchase, including dates and vendor information, helps establish ownership and original value.
- Photographic Evidence – Captures the asset’s condition and location, strengthening claim credibility.
- Serial Numbers or Unique Identifiers – Essential for electronics, machinery, and other serialized equipment.
- Depreciation or Appreciation Records – Some assets appreciate over time; maintaining accurate records ensures proper valuation.
We always encourage the use of technology and digital records, but you can start by referring to a template from the National Association of Insurance Commissioners (NAIC) to create your own inventory for commercial properties.
Regulatory Developments Related to Insurance Claims
NAIC and the Federal Emergency Management Agency (FEMA), through their model law updates and preparedness guidelines, are enforcing stricter inventory rules in the U.S. The goal is to streamline the claims process, enhance transparency, and ensure eligibility for federal aid.
Who Has the Time to Do It Right?
An accurate inventory list directly affects claim valuations, as insurance companies price claims based on the evidence provided in the documentation. It allows for:
- Precise Valuation – Reduces discrepancies and ensures insurers pay the actual value of the loss.
- Quicker Settlements – Eliminates back-and-forth exchanges with the insurer, speeding up the claims process.
- Fair Depreciation Adjustments – Prevents insurers from over-depreciating assets and cutting down payment amounts.
The good news is that in 2025, there are many tools available to help maintain and update accurate inventory records. The NAIC has developed an app to assist policyholders with inventory management. Once you have all the data systematically preserved, you need a proficient team to fight for your cause.
Your Claims, Our Responsibility
The real cost of inaccurate or missing inventory records is far greater than many anticipate when filing insurance claims. Failing to maintain accurate records can lead to:
- Extended claim processing times
- Disputed valuations
- Reduced payouts
- Overlooked items
- Claim denials
- Business disruptions
Start today by maintaining an accurate inventory. In complex, multi-million-dollar claims, it can significantly expedite the process. Our public insurance adjusting firm, Continental Adjusters, is here to assist you every step of the way.
With a history of actively serving over 40 states and international clients, we maximize your reimbursement while reducing confusion with the adjuster handling your case. Contact us today and benefit from our decades of experience in insurance claim negotiations.