How Proof of Ownership Works in an Insurance Claim
When you file an insurance claim, your insurer could ask for proof of ownership.
Whether dealing with a fire, storm, theft, or water damage claim, you need to prove you actually owned the items you lost.
Simply having something in your home isn’t enough to prove ownership. Insurers don’t work on assumptions; they work on documentation.
How do you prove ownership of something? What happens if you can’t provide proof of ownership? Keep reading to find out everything you need to know about how proof of ownership works in an insurance claim.
What is Proof of Ownership?
Proof of ownership is some type of evidence proving you owned an item on your insurance claim.
If you made an insurance claim for a $2,000 MacBook after a fire, for example, then your insurer could require a receipt proving you purchased that MacBook.
Proof of ownership is any record or evidence that verifies:
- You actually owned the item you’re claiming
- It existed at the time of loss
- If possible, the value of the item
Insurers require proof of ownership for both personal property and structural elements of your home:
- For personal property, insurers require proof of ownership to verify you actually owned the items in question – from couches to computers.
- For structural elements of your home, insurers require proof of ownership to verify they’re providing accurate compensation for your loss.
Why It Matters in a Claim
Proof of ownership matters because it helps insurers prevent fraud and provide accurate payouts.
Insurers require proof of ownership to:
- Prevent fraudulent claims
- Justify payout amounts
- Determine depreciation and replacement costs
- Comply with policy conditions
At least, that’s the idea.
Unfortunately, some insurers may demand excess documentation or take proof of ownership requirements too far. Receipts, emails, credit card statements, and other documents may not be sufficient, causing insurers to deny or reduce your claim – even if you legitimately owned the item or structural component in question.
What Happens If I Can’t Prove Ownership?
If you can’t prove ownership of an item, then your insurer will likely deny or reduce your claim.
In some cases, inability to provide proof of ownership could put your entire claim in jeopardy. Insurers may be more likely to look closer at other parts of your claim, for example, to protect against fraud.
Some of the consequences of being unable to provide proof of ownership include:
- Denied claim
- Reduced payout
- Increased scrutiny of the entire loss or claim
Unfortunately, insurers can and do deny legitimate claims every day. In many cases, homeowners lose thousands of dollars on claims simply because they can’t prove ownership of a certain item – say, a newly installed floor or a new TV.
What Counts as Proof of Ownership?
You don’t need a receipt for every item in your home, nor do you need a comprehensive home inventory (although it does make things easier).
Instead, some of the things that count as proof of ownership include:
- Receipts & Invoices: Do you have original purchase receipts, online receipts, copies, digital invoices, or credit card statements for the item?
- Photos or Videos: Do you have photos or videos of the items or rooms? Even a video of a full walkthrough of your home may be enough. Ideally, you’ll have close-up shots of high-value items.
- Owner’s Manuals or Product Packaging: An original box or instruction manual could prove you owned the item – especially for tools, appliances, and electronics.
- Warranty Registrations or Serial Numbers: If you registered a product, it proves you purchased and owned it. Check the company website or warranty system.
- Appraisals & Certifications: Appraisals and certification documents help prove you owned jewelry, art, collectibles, and antiques.
- Contracts & Permits: If you remodeled your kitchen or installed a fence, you may have signed a contract with a contractor or filed a permit with the city. These documents prove you legitimately performed the work.
How to Prove Ownership Without Documentation
Don’t have proof of ownership? Want to avoid a denied or reduced claim?
Even if you don’t have a receipt, email, credit card statement, or any of the items above, you can still prove ownership of an item or home feature.
Remember: Most homeowners don’t have receipts for every item in their home, and most homeowners don’t even have a home inventory. Don’t panic.
Instead, create a detailed and honest note about each item lost in your home. Try to include the following information:
- Item type and description
- Approximate date of purchase
- Estimated value
- Where it was located in your home
The above information may be sufficient for a claim – especially for low to mid-range items. The more documentation you have – say, a photo of your room, a purchase confirmation email, or a credit card statement – the greater your chances of receiving a fair payout.
How to Prepare for a Future Claim
The best time to worry about proof of ownership is before a major loss.
Most homeowners don’t think about creating a home inventory until it’s too late.
Fortunately, creating a home inventory is easier than you think. Spend an hour walking around your home taking photos, videos, and notes – and it’s guaranteed to make any future insurance claim easier.
Take the following steps today before anything happens:
- Walk through your home and take a video of every room
- Open doors and closets, filming the contents inside each
- Save receipts or take photos of important purchases
- Store records in the cloud and in another secure location (say, a flash drive in a waterproof safe or safety deposit box)
Some create a spreadsheet with all of the information above. Others simply put a bunch of videos, documents, and receipts into a cloud folder. You can be as neat or as organized as you want – as long as the information is accessible in some form for a future insurance claim.
How a Public Adjuster Helps
Public adjusters frequently help with proof of ownership.
Public adjusters know the documents an insurer needs to see to verify proof of ownership. In many cases, they also know how to provide evidence to ensure you receive fair value for those lost items – not the cheapest possible replacement.
Some of the ways in which a public adjuster helps with proof of ownership include:
- Help create a contents list from memory, photos, or witness statements, then formally organize that list in a way the insurer likes to see
- Help in valuing and categorizing items
- Scanning the property and damaged areas for any missing or underreported possessions or features
- Ensuring you receive every penny owed to you in your insurance claim
Overall, a good public adjuster fights to ensure you receive payment for everything you lost – not just the stuff that’s easy to prove.
Final Word
Proof of ownership can make or break an insurance claim.
Unfortunately, most people don’t think about proof of ownership until it’s too late.
Remember, in the eyes of your insurance company, things that aren’t documented might as well not exist.
By taking a few steps today, you can save time, money, and stress during a claim.
Contact ClaimsMate today for a free consultation with a public adjuster skilled in proof of ownership.
Stephanie is a property insurance claim expert with over 20 years of experience working as an insurance adjuster, expert witness, appraiser and umpire. She is passionate about sharing her expertise, knowledge, tips and training to help both property owners and Public Adjusters in their pursuit of effectively managing claims and recovering the claim settlement they deserve after a loss.
