Make Your Homeowners Insurance Item Inventory
Painless
Depending on how many items you want to insure, your home inventory could take from a few minutes to a few days to complete. But the keyword here is 'few'. Despite the small chunk of time that a home inventory can take, almost 60% of consumers have not done one. And the 59% who do have inventories haven't updated them in a year or more.
One reason many homeowners haven't started or completed an inventory may be because it can be difficult to know in which direction to go with one. Which method do you use to record information? Should you include receipts or take photos? It's understandable how many questions like these can result in your inventory never even getting started.
But regardless, statistics don't lie; if past numbers are any indication, millions of Americans will be affected by numerous types of natural disasters this year. And by not taking a regular inventory of their belongings, some of them may not be adequately covered by their home insurance should severe weather or another natural disaster strike.
Having An Inventory Makes Your Job Easier
When you've taken stock of the items in your home, your organizational skills aren't the only things that benefit. Having a list of every possession handy means that when some sort of natural event occurs, you can get your home insurance claim settled faster. It will also help you to verify your losses when tax time arrives. Think ahead: would you be able to sit for a few hours and remember every possession in your home following a horrible fire which destroyed it? How much relief could you experience, knowing that you had a list of everything that you could just hand over to your insurance company?
Begin With Groups
You might have the easiest time completing your inventory by dividing this large task into smaller and more manageable chunks. So for example, you may decide to begin with your clothing, and subcategorize as follows:
Clothing
Items Number of Items/Pairs
Pants 10
Coats 5
Shoes 20
For other items, such as computer equipment and major appliances, you will want to record their serial number, which can usually be found on the bottom or at the back of the item.
Begin your inventory with your most expensive or valued possessions first, as these may have a higher amount of information about them, such as creation year, that may need to be recorded.
The Devil Is In The Details
Items in your inventory should include as much detail as possible. Common details of inventory items may include:
- Name, description and quantity
- Serial number, model and/or brand
- When and where it was purchased
For antiques or family heirlooms, an estimated replacement price should most definitely be included, along with detailed photos of each item and any certificates of authenticity that exist for that item.
Hand-Written Vs. A Computerized List
Creating a list of your items on your computer may definitely be quicker than writing them down if you are a fast typist. But you may not wish to carry a laptop around the house with you, or try typing your items in using the tiny keyboard on your smart phone. But a digital copy of your inventory is something you should definitely have, as it can be stored on many devices and in many different formats.
A large number of homeowners insurance companies now offer inventory software, which may be available to you at no charge. Inventory software has many features which can make it incredibly easy to transfer handwritten notes into digital format.
Are Photos And Video Necessary For A Complete Inventory?
The need for photo and video in an inventory is really up to you. In cases where you may not have a lot of time to get your inventory started, going around your home and taking photos or video of your belongings can help get you a head start on an inventory project.
Consider also that details, as mentioned above, are very important. Both photo and video can provide additional details about your valuables that can be helpful in cases where your items incur significant damage that can render some of their features unrecognizable.
How Often Should You Update Your Inventory?
You don't necessarily have to update your inventory each time you purchase a new item or get rid of an old one. You can limit the items that are added to or removed from an inventory by setting a monetary limit. For example, you may only add or remove an item from you inventory that is worth $100 or more.
One reason many homeowners haven't started or completed an inventory may be because it can be difficult to know in which direction to go with one. Which method do you use to record information? Should you include receipts or take photos? It's understandable how many questions like these can result in your inventory never even getting started.
But regardless, statistics don't lie; if past numbers are any indication, millions of Americans will be affected by numerous types of natural disasters this year. And by not taking a regular inventory of their belongings, some of them may not be adequately covered by their home insurance should severe weather or another natural disaster strike.
Having An Inventory Makes Your Job Easier
When you've taken stock of the items in your home, your organizational skills aren't the only things that benefit. Having a list of every possession handy means that when some sort of natural event occurs, you can get your home insurance claim settled faster. It will also help you to verify your losses when tax time arrives. Think ahead: would you be able to sit for a few hours and remember every possession in your home following a horrible fire which destroyed it? How much relief could you experience, knowing that you had a list of everything that you could just hand over to your insurance company?
Begin With Groups
You might have the easiest time completing your inventory by dividing this large task into smaller and more manageable chunks. So for example, you may decide to begin with your clothing, and subcategorize as follows:
Clothing
Items Number of Items/Pairs
Pants 10
Coats 5
Shoes 20
For other items, such as computer equipment and major appliances, you will want to record their serial number, which can usually be found on the bottom or at the back of the item.
Begin your inventory with your most expensive or valued possessions first, as these may have a higher amount of information about them, such as creation year, that may need to be recorded.
The Devil Is In The Details
Items in your inventory should include as much detail as possible. Common details of inventory items may include:
- Name, description and quantity
- Serial number, model and/or brand
- When and where it was purchased
For antiques or family heirlooms, an estimated replacement price should most definitely be included, along with detailed photos of each item and any certificates of authenticity that exist for that item.
Hand-Written Vs. A Computerized List
Creating a list of your items on your computer may definitely be quicker than writing them down if you are a fast typist. But you may not wish to carry a laptop around the house with you, or try typing your items in using the tiny keyboard on your smart phone. But a digital copy of your inventory is something you should definitely have, as it can be stored on many devices and in many different formats.
A large number of homeowners insurance companies now offer inventory software, which may be available to you at no charge. Inventory software has many features which can make it incredibly easy to transfer handwritten notes into digital format.
Are Photos And Video Necessary For A Complete Inventory?
The need for photo and video in an inventory is really up to you. In cases where you may not have a lot of time to get your inventory started, going around your home and taking photos or video of your belongings can help get you a head start on an inventory project.
Consider also that details, as mentioned above, are very important. Both photo and video can provide additional details about your valuables that can be helpful in cases where your items incur significant damage that can render some of their features unrecognizable.
How Often Should You Update Your Inventory?
You don't necessarily have to update your inventory each time you purchase a new item or get rid of an old one. You can limit the items that are added to or removed from an inventory by setting a monetary limit. For example, you may only add or remove an item from you inventory that is worth $100 or more.