Creating an Inventory of Your Personal Possessions Can Lower Your Home Insurance and Simplify Home Insurance Claims

Mary Rand Home Insurance Editor

Reality Check: It takes a couple hours to sit down and list everything you own. What do you think about this? Do you have any ideas to make this easier or save time? Please share your thoughts on our Facebook page!

You're obviously a smart budget-minded consumer that loves to plan if you're reading this article. You are the model consumer to create a home inventory. The main reason to have a comprehensive inventory is in case of a home insurance claim. When you make an insurance claim for damaged, lost or stolen property, your homeowners policy will require you to show the quantity, description and amount of loss associated with each item.

When you make an insurance claim for damaged, lost or stolen property, your homeowners policy will require you to show the quantity, description and amount of loss associated with each item.

Depending on the type of coverage you have, either full replacement cost or actual cash value, you may have to provide a depreciated value for your item. Where possible, you'll also be asked to provide copies of bills, receipts or other documentation to support your figures. If you forget some items or fail to include an adequate description of others, you may receive less than you should for your losses.

Generally, it is best to arrange your home inventory by room. It helps to ensure that you don't miss anything. For each room, make a list of each item, opening drawers, closets and any other type of storage. Be as descriptive as possible. For example, don't simply note that a bed exists: describe the headboard, footboard, mattress and bedding, and write down colors and dimensions. Don't forget the attic, hall closets, basement and outbuildings like garden sheds.

Your property insurance list should include everything: your furniture, jewelry, artwork, antiques, appliances, kitchen contents, clothes, carpets, drapes, computer equipment, television sets, CD players (and other audio or audiovisual equipment), musical instruments, clocks, mirrors, linens, lawn mowers, snow equipment, tools, sports equipment and any other item of value. And this list is not comprehensive.

Try to include the following information for each item: Item description and quantity; manufacturer or brand name; model number or serial number; description of where the item was obtained; date of purchase or age of item; receipt or other proof of purchase, showing cost; current value, if you know it; replacement cost, if you know it; and photocopies of any appraisals

A picture can make the difference. It often helps to photograph or videotape your possessions, especially if the items are hard to adequately describe on paper or if you don't have a receipt. If you use a camera, label each photo with information about the item shown. If you use a camcorder, provide a commentary about each item in view. Date-stamp your video or take a shot of the date on that day's newspaper.

Once you have your inventory, the trick is to keep it in a safe place. An inventory will do you no good if it's lost in the same disaster that damages or destroys your home! Consider keeping a copy at work or in a safety deposit box. Include copies of your receipts and other supporting documentation. While you may never have to do a complete inventory from "scratch" again, you will want to update it. If you keep your files on your computer, updating the lists should be fairly easy. You should update your inventory at least once a year, to ensure it faithfully reflects what you have in your home.

Terms that are important in this article: home insurance, homeowners insurance, property insurance, home inventory, fire protection, flood protection, insurance agent, policy discount

Additional online information about home insurance: Home Insurance, Property Insurance, Insurance Information Institute