We purchase insurance to protect us from what might happen. Hopefully we go through life never having to make a claim against our Homeowners or Auto insurance policies. We know that the monthly or annual fee is in our best interest, even as we hope to never need its services.
Taking home inventory should be just as important. This worthwhile task is another method of protecting ourselves against something that might never happen, but could. Although most insurance agents inform their clients about the significance of taking home inventory, it is rarely performed.
Homeowners might put the task on their to-do lists, but as time goes by and busy lives take priority, it simply never gets accomplished. The result can be a very expensive one indeed. For more on how inventory and insurance relate, see Understanding Insurance and Inventory Management.
So now that you realize the significance of taking home inventory, how do you get started? At first glance it seems simple: go through your home, room by room, take pictures of your personal belongings, and document their approximate value. The problem is storing your photographs and data safely.
Many people place detailed records in a storage box under a bed or in a filing cabinet. Those files are safe and sound—until the house burns down, is burglarized, or gets filled with flood waters, rendering the information useless. This common occurrence is both ironic and sad.
In today's technological world, this should never happen. Secure servers allow you to document all of your belongings and access them with ease, eliminating the need for a physical location in which to store them.
Now that you understand how technology can make taking home inventory as secure as it is easy, your next step is to find the best website or software for your needs. Consider features, usability, and how the system stores your data securely.
Choosing a home inventory system
- Make sure the site or software allows you to quickly and easily select information about the products in your home.
- It is helpful if the system is pre-populated with items based on room and category (for example, Bedroom: Bed, Dresser, Night Stand, Lamp).
- Look for functionality that allows you to view totals by room, search by category, or produce a complete list of everything in your home.
- Be absolutely certain that the system offers secure data storage.
Several free and paid services offer secure online storage, guided tours, video tutorials, printable reports, and user-friendly FAQs. Choose the one that matches how you prefer to work and how much detail you want to capture.
In addition to helping after theft or disaster, a home inventory helps you determine the appropriate amount of insurance protection and can help settle claims faster. For guidance on coverage and policy details, see Understanding Homeowners Insurance and Understanding Insurance Policies and Homeowners Insurance.
The task of performing a home inventory is simple. Start with the most significant items (fine jewelry, electronics, furniture, family heirlooms) and add less expensive items, such as clothing, later.
For every item you list, take a photograph, give a description, list the date of purchase, note an approximate replacement value, and include any relevant information such as serial number, make, or model. Upload this information to the home inventory system of your choice and you'll be many steps ahead when it comes to recovering losses and getting your life back on track. If you need help, ask your agent.
Frequently Asked Questions
What is a home inventory and why do I need one?
A home inventory is a detailed list of your personal property, usually with photos and purchase or replacement values; it speeds up insurance claims and helps ensure you have adequate coverage.
Where should I store my home inventory?
Store inventories on a secure cloud-based service or with your insurer rather than only in your home so records survive fires, floods, or theft.
How detailed should each item entry be?
Include a photo, brief description, date of purchase, estimated replacement cost, and serial number or model where applicable for higher-value items.