How to Prepare a Home Inventory for Insurance

Most people have no idea how much money they have tied up in the contents of their home. For the average homeowner, the prospect of documenting all the personal property within your house can be a daunting task. Doing so however, is very important because if you sustain a loss by fire or theft, evidence of your ownership of the items may be lost or destroyed. Documentation in the event of a claim is the best way to insure a smooth hassle free claim process.

Completing a comprehensive home inventory can be completed most efficiently if it is done in small stages. By creating list and categories you will find that the process will go smoother and faster. Your list can be created on either a computer or paper. The computer will offer you much more flexibility if you use a spreadsheet program and will allow for easy updates should any information change over time. Since the purpose of this article is not to be an exhaustive instruction manual on using spreadsheets, we will approach this topic by use of an old fashion pen and paper.

With an assistant, your first step will be to compile a list of all the rooms in your home. Then at the top of a blank sheet of paper, write the name of the first room. Then with your assistant enter each room then one person will point out, pick up, or get out an object while the other person writes out the name of the object and if available, the value of the object. This is a very simply, straightforward format that should be continued for every room in the house.

Each room should be divided by categories as well. For example, in your bedroom first create a category called "furniture" and then list all of the items of furniture under that heading. After that, create a category called "clothing" and so forth. Each room will have its own unique categories and breaking the items down into these categories will help simplify the process and eliminate any missed items. If you would prefer to add more detail to the list, include separate columns for the item name, its brand name, its make and model, the purchase price, the replacement value, and whether or not you have a photo. This brings us to our next point, which is that items in your home should be photographed to verify your ownership of them. In particular, items that are more expensive have a greater need for photographic documentation. If possible, another alternative to photographs is video. Video can be taken while narrating each room and describing into the microphone the details of each item of contents.

You should be aware that most homeowner's policies would have special limits of liability that apply to certain items. Items such a guns, jewelry, silverware, watercraft and money are just some of the items that have limited coverage under a standard homeowners policy. Oftentimes your policy can be endorsed to increase coverage on these items. Take special care to learn what the specific limits of liability are on your policy and to determine whether you should have increased limits for specialty or expensive items that you possess.

Once you have compiled your list, photographs and or video you will want to store it in a place that will not be damaged in the event that your house is a total loss. If all of y0our information is digital and can be put on a disk and stored off premises in a safe deposit box, or you can ask your agent to include the disk as part of your insurance file at his office. If the information is not stored digitally, consider either a reliable fire safe or simply a safe deposit box.

Whenever considering an insurance purchase and the limits that may be required on your policy it is always wise to consult a professional. A professional agent or broker can give you additional advice based on your specific needs based on the type of coverage and the values of your personal property.