How To Make A Home Inventory List For Insurance?

Making a list of everything you own may seem like a daunting task, but there are many ways to get started on a home inventory that doesn't have to feel like a chore. Especially for insurance purposes, every homeowner, condo owner, or renter should have some form of a home inventory list.

Key Takeaways

Your home inventory list should cover almost everything in your house, and you'll need it if you ever need to file an insurance claim.
It may sound onerous, but provide as much information as possible about each item, such as the date of purchase, serial, and model numbers.
Make a movie or take images of everything you see as you walk through your house, and then work from there. Remember to open all closets and drawers.
Many free home inventory applications are available to assist and guide you, and many of them will export your completed list to your other devices.

What Is a Home Inventory List?

A home inventory list is a list of all the objects and personal belongings you own. The items in the list can be sorted by room, object category, collection, or other relevant criteria. As much of the following information on the objects as feasible should be included on a home inventory list:

The item's description
If appropriate, the make, model, or serial number
Cost at the time of purchase or appraisals
Where did you get the item?
Purchased date
If applicable, include receipts or images as an attachment.
If you were to buy today, this is how much it would cost to replace it.

Antiques and irreplaceable things should be addressed with your insurance agent to determine how to list them and whether or not they will be covered in the event of a claim.

When to Make a Home Inventory List

Now is the greatest time to create a home inventory list. Even a simple list is better than nothing and can give you a leg up on the competition when it comes to filing a claim. If you're a first-time homeowner or are in the midst of making one, having a list or going through the process of making one will also assist you understand:

How much coverage do you require?
What type of home insurance do you require?

For some things, insurance imposes limits on what will and will not be covered. Simply having an item on a list does not guarantee that you will be paid for it. Specific goods categories have their own set of restrictions. For valuables like jewelry, you may need to obtain an insurance rider.

Why Do You Need a Home Inventory List?

The major reason for keeping a home inventory list is to be able to substantiate your loss and have your insurance company pay you the most money possible if you have to file a claim. The insurance provider will ask for a list of items lost every time you want to file a claim. If you forget to check items off your list or don't understand the specifics, you may not get compensated adequately or at all. Because there is so much going on when you have a significant claim, it can be tough to recall everything. Having a list handy means you'll have one less thing to worry about.

The Easiest Way to Start a Home Inventory

There are numerous home inventory programs available to assist, but the simplest method to begin is to walk through your home and record video. In a home insurance claim, a video alone will not suffice, but if you have one, you can use it as a guide to create an itemized list and as part of your "evidence of loss." Make a video of each room in your house one by one. If you have a lot of large objects, consider making a video of the serial numbers and models. Open drawers and closets and make a list of what's inside so you can see what's there. Take footage of your liquor cabinet, wine cellar, paintings, collections of any kind, and even your jewelry box. Make multiple tiny movies of each place, room, or type of item to make this endeavor easier. When you're making your list, you'll be able to watch them one at a time. Upload, save, and back up your files to a secure location.

Photos vs. Video: Create a Digital Home Inventory List

Taking pictures of your belongings is an excellent habit to get into, and it may also serve as a starting point for creating a home inventory. Take images of entire rooms, specific regions, drawers, closets, and products, just like you would with a movie. Take photos of any model or serial numbers on the objects and use them to compile your home inventory list as soon as you have time. The video is an excellent beginning step, and it will provide some security until you have the opportunity to document everything in a more official app. It's preferable to have anything (even images) on hand during a claim than nothing. Claims don't wait for you to finish making a formal list.

Figure Out the Value of What You Own

Knowing the value of your belongings is vital for determining if you have the correct insurance and how much coverage you need on your contents, in addition to having a list of items to offer the insurance company to get compensated in a claim. Consider the replacement cost rather than the monetary value. This is also a good moment to inquire about the foundation for claims settlement with your insurance company, as well as if you would receive replacement cost. If not, now is a good time to examine your insurance coverage, because no one wants to be startled when a claim is filed and they discover they won't be able to replace their belongings. Learn about replacement cost vs. actual cash value and why it's important to know the difference.

Don't Think What You Have Is Worth Much?

Walking through one room of your home with a calculator is a quick method to see if what you have is even worth conducting a home inventory of. It's possible that the value of your "things in your house" will surprise you. Are you still not convinced? Try the calculator challenge for five minutes. Start adding up the replacement costs of everything you see on your calculator. Don't list the wonderful sale price you got; instead, list the full retail price, because you won't be able to get the same deal in a claim as you did when you bought the item originally. In five minutes, how much did you earn? Still not persuaded? Go to your closet and retrieve your calculator. Begin by calculating the cost of replacing your shoes, dresses, suits, jeans, purses, sweaters, and t-shirts. Don't forget to bring your coats and jackets! You're unlikely to get all the way through your closet before realizing that the items you own are worth a lot more than you believed. The kitchen is another location where possessions build up quickly: pots, pans, and other cooking utensils and tools add up swiftly. Test it yourself.

Free Home Inventory Apps and Other Digital Tools

Many resources are available to assist you in gathering all of the information you'll need to create a home inventory list that will stand up to scrutiny in a claim. Check with your insurance carrier to see whether it offers or recommends an inventory app. If you ever need to file a claim, this could save you time. You can also look for other solutions in your app store. Before downloading any home inventory software, make careful to check the reviews. Make sure that any app you choose allows you to export lists and data so that you don't lose anything if the company ceases producing the product or service.

Keep Your Home Inventory List Safe and Accessible

It's necessary to have a home inventory, but having it at your home may not be the best idea. Information can be stored on the cloud or in a location that is accessible at any time from anywhere. A house 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 choose.) Make certain you:

Learn about the privacy and security features of the service you've chosen.
Keep your information private and not available to the general public.
Keep your home address off your inventory list in case it gets misplaced.
Consider including your insurance policy number and claims phone number on the form so you may report a claim with it.
Investigate the service you're utilizing to see if it's dependable.
Allow access to the main adult members of the household in the event that one of them is unavailable when you require information for whatever reason.

To store your video and photos, try using a safe cloud file storage provider, then adding a full list once they're ready. Just make sure you have any important information backed up somewhere other than your phone or computer, and outside of your house. Some people maintain a copy of the document in their office. You'll need it in an emergency, and you'll want to make sure it's kept safe and confidential.

Frequently Asked Questions (FAQs)

What is covered under personal property insurance?

The personal belongings you have in your house are covered by your homeowners, renters, or condo insurance policy. The coverage limit for your house contents is determined by a percentage of your total dwelling limit in a homeowner's policy, however you may be able to acquire additional coverage. You'll determine the amount of coverage in a renter's or condo policy based on your inventory. Your contents are generally covered for the same types of calamities as your house, but your policy may include specific provisions or exclusions for your belongings.

How much personal property insurance do I need?

Based on the dwelling coverage on your homeowner's policy, your insurance company may be able to supply you with some general property limits. However, the easiest approach to figure out how much property coverage you need is to take a comprehensive inventory of your belongings. Make sure to evaluate replacement cost vs. real cash value coverage, as the two give vastly different levels of protection.

Under what circumstances would a property insurance claim be rejected?

For a variety of reasons, your insurance carrier may deny your property claim. A claim denial could occur if the damage was not caused by a covered incident, you haven't paid your premium, or you didn't provide enough information when you first purchased your insurance. If your insurance determines that the damage was done on purpose, it may deny your claim.