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Are you prepared to offer a complete list of your belongings to a claims adjuster if your home is burglarized or damaged by fire? Having an up-to-date home inventory may not only speed up settlement of your insurance claim, it could also help you determine the correct amount of insurance coverage needed or even help to verify the loss for your federal income tax return.
Nearly half of all Americans do not inventory their possessions, according to a 2008 study by the National Associations of Insurance Commissioners. Leah Hunger, director of insurance for AAA Tidewater Virginia, notes, "Although no one expects a burglary, fire or other disaster, it is important and advisable to have a complete and updated inventory of your belongings."
How to Start
The idea of listing all your possessions can seem overwhelming, so divide the task into smaller ones. Spending just an hour or two on the job each weekend, room by room, will soon give you a useful inventory. Even an incomplete inventory is better than nothing. Start with recent purchases and then try to remember what you can about older items. Don't forget to include items that are in drawers, closets and cupboards.
What to Include
At a minimum, describe each item. It is also helpful to write down when and where you bought it, the price, and a serial number for items such as electronics or appliances. List items like clothing, books, CDs, bed linens, towels, and pots and pans by category rather than individually. For example, note the total number of books you own, and estimate their total value. Better than guesswork is documentation such as receipts and appraisals. Store them with your inventory, and add them to your file as you purchase new items.
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Certain items, such as jewelry, artwork or collectibles, may need to be "scheduled" on your insurance policy and insured by a personal article floater. Be sure to discuss these, or other unique or high value items, with your agent to determine if they are properly insured.
Photo Evidence
Take a picture of the entire room, as well as your most valuable individual items. A video walkthrough of your house, describing individual items out loud as you do it, is another great way to document your possessions. Put the photos or video on a disc and store it with the rest of the inventory.
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Storing Your Inventory
Regardless of whether your inventory is a written list or a computer file, remember the obvious: The time you will need it is when your home is damaged, so don't keep it where it will be lost along with your other possessions! Keep your inventory and related receipts and documents in a safe deposit box or at a relative's home.
Keeping It Updated
Whenever you make a significant purchase, add the item and information to your inventory while the details are fresh in your mind.