Insurance is something you may never use, but you’re glad to have it when you need it. Insurance can help protect not just your home, but your possessions within it, in case of loss. That’s why it is important to know what is and isn’t in your home. Creating a home inventory list and updating it annually can help with that.
This inventory is a detailed list of everything in your home, from furniture to electronics.
Home inventories can help you buy home insurance
One of the benefits of taking an annual inventory of your home is that it can help you decide how much home insurance you want to buy. When buying home insurance, you’ll be taking into consideration not only the cost to rebuild your home but the value of the personal property, including:
Home inventories can help you make a claim in case of loss
If you must make a home insurance claim due to theft or severe weather, do you know what’s in your home? A complete home inventory will ensure that insurers have enough detail to corroborate your losses and reimburse you accordingly. Apart from being reimbursed via your insurance, a home inventory will also help your claims process faster.
Tips for taking your home inventory
When taking your home inventory, it doesn’t matter if you’re doing it with a pen and paper or a computer program. Do one room at a time, so you don’t miss anything, and include in your report each item’s:
- Description, including make and model
- Purchase date
- Estimated value
- Serial number
Take pictures of each room and focus on valuable items like electronics and jewelry. It’s highly recommended that you have the receipts for items, as an actual price is much better than an estimate when making a claim.
After completing your home inventory, put it and all other necessary documentation in a safe place. This can be a home safe or a safety deposit box at your bank. If you decide to go more high-tech, back up hard files on your computer with a cloud storage service.
Update your inventory annually or whenever you make a big purchase. Doing so will keep your list up-to-date, making the claims process less painful.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.