Money Management - December 2004

Securing Vital Records From Disaster

Prior Planning Can Prove Valuable

by Michael J. Klaich

The summer of 2004 was an especially active one for fires, hurricanes and tornadoes, three of nature’s fiercest and most unstoppable disasters. The damage from such disasters goes beyond the typical home, property and sometimes human loss to include the destruction of many vital documents. Without proper planning, individuals must reconstruct these lost records before they can file insurance claims, establish entitlement to their property and benefits, and start rebuilding their lives.

A well-planned compilation of documents, often referred to as a "personal document locator" or "vital records inventory," pulls all important documents together in one place. The starting point in creating a vital records inventory is to establish what documents are critical. Some records, such as birth certificates, wills and insurance policies, are vital and should always be included in the inventory; however, each individual has a unique and personal perspective of what is a vital record. It may be important that items such as an ancestor’s memoirs, vintage family photographs, immigration records and other items be preserved at all costs.

The creation of a household inventory can be broken down into a manageable four-step process:

Prepare a detailed list of possessions, making note of the model and serial number when available.

Document property by photographing or videotaping the house and its contents, as well as automobiles, boats and other property.

Establish the value of the property through receipts or appraisals.

Secure the inventory record, which can be the basis for insurance claims, estate distributions and other transactions.

Once the household inventory is complete and all other documents are compiled, the vital records inventory can be enhanced by supplementing the list with the location of each document or record. The format of a vital records inventory can be as simple as a three-ring binder that holds the inventory and originals or copies of all documents. Or the entire inventory can be transferred to a CD for more efficient storage.

Components of a Vital Records Inventory

Inventory of household and other assets

Insurance policies, including a summary of policy numbers and contact phone numbers

Retirement plan documents

Bank and investment accounts; credit card records; other loan records

Deeds to real estate, mortgages

Home improvement records

Titles to automobiles and other large assets (boats, campers, etc.)

Birth certificates and death certificates

Social Security cards, earnings records and pay stubs

Marriage, adoption and citizenship papers

Veteran’s papers