Why You Should Do A Home Inventory

As insignificant as it might sound, a home inventory is one of the best things you will ever do for your house. How will you know what the value of the stuff in your house is worth if you don’t have an inventory list? Your house may face some type of calamity at some point, and you need to be prepared.

Making a home inventory will feel like a daunting task at first, but there are ways to get started. Is it really worth it? You may ask. Yes, every renter, condo owner, and homeowner should make a home inventory list as it will speed up a homeowners insurance claim process if your belongings are damaged by a fire, flood, or any other covered disaster.

Your inventory list should include items or personal belongings you have in your house. These items can be categorized by type, item, room, or any other related criteria.  Some things to include in the list:

  • Item description
  • Serial number, Make, and Model
  • Item appraisals (cost when they were purchased)
  • Place where items were purchased
  • Receipts and photos attached if applicable
  • Cost of replacement
  • Antiques or irreplaceable items should be reviewed with your insurance agent to learn how they are compensated in a claim

A home inventory list can help you understand the value of your belongings, so you can purchase the most appropriate insurance coverage. You can start making the list as soon as you can. A basic list is something to start with if you don’t have time for more. This is true especially if you are a first-time home buyer since it will help you understand how much insurance you need or what type of policy you should purchase. Remember, some items may have certain limits set by the specific insurance provider, which means not every item in the list may be covered.

Why do you need a home inventory list?

The basic reason to make a home inventory list is to prove your loss and get compensated by the insurance company when a claim is made. You may not get paid enough to cover your losses if certain valuable items are not included on the list. At times, you may not receive compensation, particularly if you have a major claim – it’s hard to remember everything after such an impactful event takes place.  

There are many apps designed to make a home inventory by just taking a video. But a video alone may not be enough when it’s time to file your insurance claim. It can be used as a reference to make a list and as “proof of loss.” Video everything in your house, including serial numbers, inside drawers, and closets. Taking photos may also come in handy. You can use these to create your home inventory list when you have a chance.

How much is your stuff worth?

Knowing the value of your stuff is crucial to help you figure out if you have the right type of insurance for your contents. The replacement costs should be considered rather than the actual cash value. You can ask your insurance company whether you will get enough money to replace these items if a claim ever occurs.

Finally, make sure you keep your home inventory list safe. You can ask your insurance company what they recommend or just store your information in a safe place. Back up the information and give access to people you can trust. The idea is to have it available in case of an emergency.  

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