My shop burned down. I claimed $40,000 in tools. The adjuster asked for the inventory. “It was on the computer in the shop,” I said. “Okay, do you have receipts?” he asked. “They were in the filing cabinet in the shop,” I said. He looked at me and said, “Then we have a problem.” I ended up settling for $12,000 because I couldn’t prove I owned the rest.
Key Takeaways
- Burden of Proof is on You: The insurance contract states you must prove the loss. If you can’t prove you owned it, they don’t have to pay.
- Cloud Storage is Mandatory: Physical receipts fade or burn. Use Google Drive, Dropbox, or a tool inventory app (like Milwaukee One-Key or Sortly).
- Photos > Nothing: In 2026, AI visual analysis can identify a tool model from a photo. A video walk-through of your truck/shop is the single best backup if you lack receipts.
- Bank Statements Help: If you don’t have the Home Depot receipt, a highlighted credit card statement showing a $499 charge at Home Depot helps, but it’s not definitive proof of what was bought.
The “Why” (The Trap): Fraud Prevention
Adjusters assume that if you can’t prove it, you are padding the claim.
Without a serial number or receipt, they will assume the cheapest possible model.
- You claim: “Hilti Rotary Hammer ($1,000).”
- No proof? They pay: “Harbor Freight Rotary Hammer ($89).”
The Investigation: “I Called Them”
I tested what counts as “Proof” with claims departments.
1. The “Shoebox of Receipts”
- Verdict: Good, if legible. But thermal paper fades in 6 months.
- Risk: Highly vulnerable to fire/loss.
2. The Video Walkthrough
- Verdict: Excellent. I walked through a van, opening drawers.
- Tech: Adjusters use AI to pause the video, identify the red tool as “Milwaukee M18 Fuel,” and value it.
- Advice: Do this once a quarter.
3. Inventory Apps (Sortly / One-Key)
- Verdict: The Gold Standard. If you export a PDF from an inventory app with serial numbers and purchase dates, the claim is often approved in 48 hours.
Comparison Table: Proof Hierarchy
| Evidence Type | Credibility | Claim Speed |
| Original Receipt + Serial # | 100% | Fast |
| Inventory App Export | 95% | Fast |
| Photo/Video of Tool | 80% | Medium |
| Credit Card Statement | 50% | Slow (Arguments) |
| “I swear I had it” | 0% | Denied |
Step-by-Step Action Plan
- The “Sunday Morning” Walk: This Sunday, take your phone. Walk to your truck. Open every drawer. Record a continuous video. Narrate it: “Here is my Fluke meter, here is the press tool.” Upload to Cloud immediately.
- Digitize New Receipts: Stop stuffing them in the visor. Snap a photo in the parking lot. Email it to a folder called “Tool Receipts.”
- Use Dealer Records: If you buy from a pro supplier (White Cap, Ferguson), they keep purchase history. Ask them for a report of your last 2 years of purchases.
- Register Your Tools: Registering with the manufacturer not only helps with warranties but creates a third-party record of ownership.
FAQ
Q: What about tools I bought for cash on Facebook Marketplace?
A: Take a screenshot of the listing and the Venmo/CashApp confirmation. Take a photo of the tool immediately.
Q: Do I need to list drill bits?
A: No. Use “Blanket Coverage” for small items. Just have a photo showing a full drawer of bits to justify the “Miscellaneous Tools” lump sum.
[IMAGE: Screenshot of a phone screen showing a “Google Photos” album named “Tool Inventory” with dates.]