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Don’t just take our word for it, hear it from home improvement and insurance company experts - Why do a home inventory, how do I do an effective inventory, what assets / details should I record, is this going to take forever, how do I make sure my warranty is honored if my asset breaks, what do I do when damage has occurred to ensure I document it properly?
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The Importance of keeping a Home Inventory
The Importance of Creating a Home Inventory for Insurance Purposes
Creating a home inventory is a crucial step for homeowners to ensure they are adequately covered by their insurance policies (1). A comprehensive home inventory provides a detailed record of your personal belongings and their value, which can be invaluable in the event of a disaster or theft (2). Here are some key reasons why it's important to create a home inventory:
Faster Claims Process
Having a well-documented home inventory can expedite the claims process by providing your insurance company with a clear and comprehensive record of your belongings. This documentation helps reduce delays and disputes, ultimately resulting in a quicker settlement (2).
Proof of Ownership and Value
In the event of a claim, your home inventory serves as proof of ownership and value for your belongings. This evidence is vital in helping you receive the appropriate compensation for your lost or damaged items (2).
Maximize Your Claim Payment
Without a full record, it's easy to forget about sometimes expensive items. A clear, concise accounting of all your personal property helps prevent such oversights and maximizes the payout (3).
Accurate Insurance Coverage
A detailed home inventory helps you determine the accurate value of your personal property, ensuring you have the right amount of insurance coverage. This information is crucial when filing a claim, as it allows you to provide your insurer with an accurate estimate of your losses (2).
Tax and Disaster Assistance:
A home inventory can also be beneficial when claiming tax deductions for lost or damaged property or when seeking financial assistance after a disaster. Having a thorough record of your belongings can help support your claims and simplify these processes (2).
Types of Assets to Record
When creating a home inventory, it's important to record a wide range of assets, including: (4)
Furniture
Sofas, chairs, tables, beds, dressers, etc.
Electronics
Televisions, computers, smartphones, tablets, gaming consoles, etc.
Clothing and Accessories
Shirts, pants, dresses, shoes, jewelry, watches, etc.
Home Decor
Artwork, rugs, curtains, lamps, mirrors, etc.
Valuables
Cash, coins, antiques, heirlooms, etc.
Personal Items
Books, toys, collectibles, musical instruments, etc.
Details to Keep
For each item in your home inventory, it's important to keep the following details: (4)
Description: A thorough description of the item, including the make and model (if applicable).
Estimated Value: The current estimated value of the item.
Purchase Date: The date when the item was purchased.
Receipts: Keep receipts for valuable items.
Serial Numbers: Note the serial numbers for electronics and appliances.
Photographs or Videos: Take photos or videos of each item to provide visual evidence (5).
Conclusion
Creating and maintaining a home inventory is a proactive step that can save you time, money, and stress in the event of a disaster or theft. By keeping a detailed record of your personal belongings, you can ensure that you are adequately covered by your insurance policy and receive the appropriate compensation for your losses (2).
For more information visit these articles from Nationwide and NerdWallet.
How to Create a Home Inventory
A list of your belongings will make filing an insurance claim much easier.
In the event of a fire or other disaster, would you be able to remember all your possessions? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance. Here's how to create one. (1)
Start your home inventory now
If you're just setting up a household, starting a home inventory is relatively simple. If you’ve been living in the same house for many years, however, the task of creating a list can seem daunting—but it doesn’t have to be. Get started here.
Pick an easy spot to start
A contained area—like your small kitchen appliance cabinet, your sporting equipment closet or your handbag shelf—is a great place to get started.
List recent purchases
Another way to start is with recent purchases—get into the inventory habit and then go back and tackle your older possessions.
Include the basic information
In general, describe each item you record, and note where you bought it, the make and model, what you paid and any other detail that might help in the event you need to make a claim.
Count clothing by general category
For example, "5 pairs of jeans, 3 pairs of sneakers…" Make note of any items that are especially valuable.
Record serial numbers
Usually found on the back or bottom of major appliances and electronic equipment, serial numbers are a useful reference.
Check coverage on big ticket items
Jewelry, art and collectibles may have increased in value and may need special coverage separate from your standard homeowners insurance policy. While you're making your home inventory list, check with your agent to make sure you have adequate insurance for these items before there is a loss.
Don't forget off-site items
Your belongings kept in a self-storage facility are covered by your homeowners insurance, too. Make sure you include them in your inventory.
Keep proof of value
Store sales receipts, purchase contracts, and appraisals with your list
Don't get overwhelmed
Once you've started your inventory, keep going even if you can't get it all done immediately. It's better to have an incomplete inventory than nothing at all.
Use technology to make your home inventory easier
Take pictures
Create a photo record of your belongings. Capture important individual items as well as entire rooms, closets or drawers. Label your photos with what's pictured, where you bought it, the make or model—whatever information might be important to replacing and/or getting reimbursed for the item. Use your smartphone or digital camera—some give you the capability to put in the description of the item when saving the photo.
Take videos
Walk through your house or apartment videotaping and describing the contents. For example, you might describe the contents of a kitchen cabinet: "Poppies on Blue by Lenox, service for 12 that includes a dinner plate, salad plate, bowl, cup and saucer. Purchased in 2015."
Use an app
There are many mobile app options that can help you create and store a room-by-room record of your belongings.
Insurance Information Institute: How to create a home inventory, Insurance Information Institute
How to tackle the task of recording my assets
How to Methodically Record a Home Inventory with PropertyHero
Creating a home inventory may seem daunting at first, but it's a vital step to ensure you’re well-prepared in case of unexpected events like theft or natural disasters. With the help of PropertyHero, this task can be streamlined and, dare we say, almost fun. Let's walk through a methodical approach to recording your home inventory, leveraging the unique features of PropertyHero.
Step 1: Start with High-Value Items
Begin your home inventory by recording high-value items. These could include electronics, jewelry, antiques, and other valuable assets. High-value items are often the most critical to document as they can represent a significant portion of your claim in the event of loss or damage.
Tips for recording high value items
Description: Provide a detailed description, including brand, model, and any distinguishing features.
Estimated Value: Note the current market value of the item.
Photographs: Use PropertyHero to take high-resolution photos of the items.
Receipts and Documentation: Upload any purchase receipts, warranties, or appraisals.
Step 2: Go Room by Room
Once you've documented the high-value items, proceed by inventorying each room systematically. This ensures that you don't miss any items and helps keep the process organized.
Tips for Room-by-Room Inventory:
Visual Documentation: Use PropertyHero’s AI feature to take a picture of each room. The app will automatically identify and add the assets to your inventory database.
Item Details: Record basic details such as the name and type of each item.
Serial Numbers: For electronics and appliances, use the app’s AI to capture and record serial numbers by taking a picture of the asset label.
Step 3: Record Basic Asset Data
Initially, focus on recording the basic data for each asset. This includes the item’s name, type, and estimated value. The goal is to create a rough inventory that you can refine later.
Basic Data to Record:
Item Name
Item Type (Category)
Estimated Value
Step 4: Refine Your Inventory
After creating a basic inventory, go back and add more detailed information. This can include serial numbers, brand, model, and any additional notes. Upload receipts, warranties, and other relevant documents to ensure comprehensive documentation.
Tips for Refining Your Inventory:
Detailed Descriptions: Include specific details such as brand, model, and serial numbers.
Receipts and Documentation: Upload any available purchase receipts and warranties.
Photographs: Ensure you have clear photos of each item from different angles.
Step 5: Utilize Maintenance Schedules
After creating a basic inventory, go back and add more detailed information. This can include serial numbers, brand, model, and any additional notes. Upload receipts, warranties, and other relevant documents to ensure comprehensive documentation.
Tips for Maintenance Schedules:
Regular Check-Ups: Schedule annual or periodic maintenance for items like furnaces, HVAC systems, and appliances.
Notifications: Set reminders within the app to ensure you don't miss any maintenance dates.