How to Make an Easy Home Inventory List for Insurance
Prepare to demonstrate the worth of your possessions if necessary. Making a list of everything you own may appear to be a daunting task, but there are many ways to begin a home inventory that aren't a chore. Every homeowner, condo owner, or renter should have a home inventory list, especially for insurance purposes.
What Is a Home Inventory List?
A home inventory list is a list of all of the items or personal belongings in your home. The list can be organized by room, item type, collection, or any other relevant criteria. A home inventory list should include as much of the following information as possible for each item:
- Product information
- If applicable, the make, model, or serial number
- Appraisals or purchase price at the time of purchase
- Where did the item come from?
- Purchase date
- If applicable, include receipts or photos as an attachment.
- Estimated replacement cost if purchased today
When to Make a Home Inventory List
Now is the best time to create a home inventory list. Even a simple list is better than nothing and will get you started on a claim. If you are a first-time homebuyer or are looking for your first apartment or condo, making a list or going through the process of making one will help you understand:
- How much insurance you need
- What kind of home insurance you need
For some items, insurance has limits on what will and will not be covered. Just because you have something on a list doesn't mean you'll get paid for it. Special restrictions apply to specific types of merchandise. For items such as jewelry, you may need to purchase an insurance rider.
Why Do You Need a Home Inventory List?
The main reason for keeping a home inventory list is to be able to prove your loss and get the most money from your insurance company if you need to file a claim.
If you leave something off your list or don't know the details, you might not get paid enough, or you might not get paid at all. Because there is so much going on when you have a major claim, it can be difficult to remember everything. Having a list prepared means having one less thing to think about.
The Easiest Way to Start a Home Inventory
There are numerous home inventory apps available to assist, but the simplest way to begin your home inventory is to walk through your home and record video. A video will not suffice in a home insurance claim on its own, but if you have one, you can use it as a reference to create an itemized list and as part of your "proof of loss."
Record a video of each room in your house one at a time. Consider making a video of the serial numbers and models of your large items. Open drawers and closets and record the contents so you can see what's inside.
Take video of your liquor cabinet, wine cellar, art, collections of any kind, or even a jewelry box.
Photos vs. Video: Create a Digital Home Inventory List
Taking photos of your belongings is a good practice that can also serve as a starting point for creating a home inventory. Take photos of entire rooms, specific areas, drawers, closets, and items, just as you would with a video. If your items have model or serial numbers, photograph them and use them to create your home inventory list as soon as you have time.
The video is an excellent first step, and it will provide some security until you have the time to document everything in a more formal app. Having something (even photos) on hand during a claim is preferable to nothing.
Figure Out the Value of What You Own
Aside from having a list of items to give the insurance company in order to be compensated in a claim, knowing the value of your belongings is important for determining whether you have the proper insurance and how much coverage you need on your contents.
Consider the replacement cost rather than the cash value. This is also a good time to inquire with your insurance company about the basis for claims settlement and whether you would receive replacement costs. If not, now is a good time to review your insurance coverage because no one wants to be surprised when a claim occurs and they don't receive enough money to replace their items. Learn the difference between replacement cost and actual cash value and why it matters.
Don't Think What You Have Is Worth Much?
Walking around one room of your home with a calculator is a quick way to determine whether what you have is even worth making a home inventory of.
The worth of "stuff in your house" may astound you. Still not convinced? Try the calculator challenge in five minutes. Start adding up the replacement cost of everything you see on your calculator. Don't list the great sale price you paid; instead, list the full price, because you won't be guaranteed to find a deal like you did when you first bought the item. How much did you earn in five minutes?
Are you still not convinced? Go to your closet and grab your calculator. Begin by calculating the replacement cost of your shoes, dresses, suits, jeans, purses, sweaters, and t-shirts. Remember to bring your jackets and coats! You probably won't make it all the way through the closet before you realize your possessions are worth a lot more than you thought.
The kitchen is another room where possessions can quickly add up: pots, pans, and other kitchen utensils and tools can quickly add up. Try it out for yourself.
Free Home Inventory Apps and Other Digital Tools
Many tools are available to assist you in gathering all of the information required to create a home inventory list that will stand up in court.
You can also look for other options in your app store. Before downloading any home inventory app, make sure to read the reviews.
Make sure that any app you select allows you to export lists and information so that you don't lose everything if the company stops producing the product or app.
Keep Your Home Inventory List Safe and Accessible
A home inventory is necessary, but keeping it in your home may not be the best idea. Technology allows us to store information in the cloud or in a location that is accessible from anywhere at any time. A home inventory does not need to be kept in a safe deposit box or given to a friend. (Of course, you can still do so if you want.) Make certain that you:
- Understand the privacy and security settings of the service you choose.
- Keep your information private and out of the public eye.
- Keep your home address off your inventory list in case it falls into the hands of the wrong people.
- Consider including your insurance policy number and claims phone number on the form so that you can use it to file a claim as well.
- Investigate the service you are using and determine its dependability.
- Allow access to the primary adult members of the household in the event that one person is unavailable when you require the information for any reason.
Consider using secure cloud file storage services to save your video and photos, then add a detailed list once they're ready. Simply ensure that any information is backed up somewhere other than your cell phone or home computer, and somewhere other than your home. Some people keep a duplicate at their workplace. You'll need it in an emergency, and you'll want to make sure it's kept safe and private.