Why a Home Inventory Is Important

Let’s try a little exercise: Can you list everything you own from memory?

Didn’t think so.

The fact is most people own more things than they realize. It’s easy to remember the cars, the computer, the TV. But what about that holiday china in the garage?  Or every pair of shoes?

All of it is regarded as personal property for insurance purposes. And if your home is destroyed by fire or some other disaster, having a list of your possessions makes filing a claim easier — and helps you put your life back together.

Why should I complete a home inventory? What’s the best way?

Comparing the value of your belongings to the “contents” limit listed in your policy helps you make sure you have enough insurance to replace them if they are lost, stolen, or destroyed as a result of a covered loss. The easiest way to take an inventory is to use video, recording and describing items as you walk through your house. Or, you can take photos and create a home inventory checklist.

Here are a few tips for completing and storing your inventory:

• Add brand names and descriptions where you can, especially on large-ticket items. Serial numbers are helpful to note.
• Keep any receipts you have with the list to make the claims process easier.
• Store your video or photo inventory offsite so you won’t lose it if your house is damaged.
• Update your personal property records when you purchase new furnishings and valuables.
• Though the task may seem daunting, it’s important to try. An incomplete inventory is better than nothing at all.

To understand how much stuff you have, develop a careful inventory of your personal property following these tips:

• Use video to record and audibly describe items as you move through your home. 
• Whether you use still photos or video to develop your inventory, include brand names and descriptions where possible, especially on high-cost items.
• Keep any and all receipts on high-dollar purchases. Keep these receipts filed together with any instruction booklets, warranties, etc. that accompany the items.
• Store your video or photo inventory offsite or back it up with an additional drive.
• When you make new purchases, be sure to add them to your inventory.

How much insurance do I need?

We can assist you in analyzing your insurance needs and help you decide how to most effectively protect your personal property.

Finally, remember your homeowners policy only covers valuable items such as jewelry, furs, art, and antiques, only up to set dollar amounts. If the cost of replacing them exceeds these limits, you may want to purchase scheduled personal property coverage.

The Insurance Information Institute has more details on this important practice here.

We hope you’ll never need the home inventory, but preparing for the worst can prevent a lot of hassle later!