As A Contractor, your tools are your livelihood. But do you know what they’re worth should you sustain a loss? In the event of a theft, the following questions will be asked by the claims adjuster: What was taken? How old is the item? Where did you buy it? Do you have any receipts to show ownership? If you can’t answer these questions and show proof of ownership, the claims adjuster will have a difficult time accurately assess your loss amount.
It is your duty, as the insured, to prove your loss. The best way to prove what you own is by keeping the sale receipt. This gives the adjuster the accurate information on what you are claiming. Additionally, it can affect the payment amount of the claim. Typically, miscellaneous tools & equipment are depreciated to reflect the actual cash value. The item may have a higher depreciation amount applied, it you don’t have a receipt to show its age.
Store your receipts separately so that they don’t get nicked right along with your tools or equipment. Having to track down receipts from retailers is a very time-consuming task. Receipts are not the only thing that you should retain. It is important to save the owner manuals, it allows us to match model numbers properly. Also, taking photos of your inventory periodically is important as well as you may not remember every little thing in your tool box, trailer or shop. Having all this information at the ready will reduce the claim processing time and get you back to work quicker.