As I get out my file Box 1 to gather the documents from the eighth slot, I am reminded why I chose to spend my time wisely in organizing my family’s important documents. Knowing that all the documents are in one location within easy reach and that I can locate any given policy within a one-minute time frame thrills me. Using my time wisely, over 7 years ago, was time well spent.
Reflection on a job well done is encouraging. If you are making progress, then take a step back. Admire your progress (no matter how small), and be encouraged that “Rome was not built in a day.” Little steps here and there will get you to your desired end. Just keep on track.
In keeping you on track, we are focusing on the third category, Home Ownership Documents, and have added our deed(s). The next item in this eighth file slot of my accordion-filing system is our homeowner insurance documents.
When I first set up our filing system, Paul and I were not homeowners. However, we were renting and had renter’s insurance. Those rental insurance documents were housed in this category until they were replaced for our homeowner’s insurance. Though you might not own a home (yet), you can still benefit from setting up your organizational system before you purchase your first home.
My pack of homeowner insurance documents includes the following items:
- Homeowner’s Policy. Our policy is a booklet printed on thin paper.
- Declarations Page. I receive this page with the notification of our annual bill.
- Annual Bill. I keep the most current annual bill.
- Copy of Mortgage Statement with Insurance Payment. When my mortgage company pays the homeowner’s policy (out of our escrow account), I make a copy of that mortgage statement and keep it with the bill. If the payment is ever in question, I will have the proof with my policy.
- Notices of Changes to our Policy. At the time of renewal, our annual statement may include Notices of Change. As I review these documents, I will keep any Notice of Change forms and add them to this section of my file.
- Privacy Policy. Each year our insurance company sends an updated privacy policy. I keep the current policy with our insurance documents.
These six items are placed in the listed order and attached with a paper clip. I then have these items filed behind the deed paperwork. The next two items in Suze Orman’s checklist are co-ownership property agreement (which I do not have) and fire insurance. I will not include a separate post for fire insurance. Our homeowner’s insurance covers any damage due to fire or lightning. If your state requires additional insurance for fire and you have fire insurance, then you can add those documents in this file.
Next week as we continue this category of home ownership, I will share an additional set of documents I have added to this category. In theory these documents could be added to another category, but I find the paperwork quicker when filed in this category. Come back next week where I will fill you in. In the meantime, happy organizing!
Question: What additional documents do you include with your home insurance documents?
