• When you possess a comprehensive list of all the materials in your residence along with the necessary bills and documents, it becomes simpler to file a home insurance claim. An updated home inventory list is beneficial when your property sustains damage from natural disasters, fire, theft, or any unforeseen event. A well-organized home inventory keeps track of the insurable assets that assist you in settling a covered loss or claim. In addition to this, it may also aid in verifying tax-deductible property losses and establishing the appropriate level of insurance coverage you require.

What is Home Inventory?

• A home inventory consists of a comprehensive list of everything within the home, encompassing furniture, appliances, and valuable items such as jewelry and antique keepsakes. Home inventories have multiple significant applications. They can verify losses on your income tax return. Additionally, they can assist in determining the correct amount of personal property coverage for your homeowners or renters insurance. A home inventory can facilitate home insurance claims by providing you with a detailed list of damaged or stolen belongings. Furthermore, it can help maximize your compensation after submitting a home insurance claim. If your property endures damage during a disaster that is covered by your policy, such as a fire or explosion, you can reference your home inventory list as evidence of the loss. To improve your chances of a successful claim, it is also beneficial to include photographs or receipts of the damaged items, particularly if you are claiming a loss on a high-value item.

How to make a home inventory

• There are various methods to create an inventory. However, no matter which approach you select, be sure to do the following when compiling your inventory:

1. Start small
   It is advisable to begin in a small room and gradually progress outward. Once you finish with one particular room or space, then move on to the next. Many individuals make the error of beginning their list with large items or noting items randomly.
   
2. Be descriptive
   If you are unable to specify the price of a particular item, a simple description will suffice. Keep in mind that the insurer will process home insurance claims more promptly if you are precise about what has been lost. It will be very helpful if you mention specifics such as the date of purchase, purchase price, make and model name, serial number, etc.
   
3. Group your items by category
   It is advisable to organize the type of product being inventoried and the quantity. For instance, you can write “10 shirts” or “7 pots and pans” instead of detailing each item.
   
4. Be mindful of expensive items
   Make sure to note any high-value items you possess and document those in a distinct section of your home inventory list. For instance, if you have valuable jewelry or electronics, you might need to include additional coverage such as a scheduled property endorsement on your homeowner’s insurance to recover their full worth on a claim. Remember to consult your insurance agent to determine which of your possessions require extra personal property coverage.
   
5. Remember the items outside your home
   Homeowners insurance typically provides a limited amount of protection for items that are lost or damaged away from your residence, usually up to 10% of your policy’s property coverage cap. This means that if someone breaks your bicycle lock and steals your bike while it’s secured outside your job, your home insurance can compensate you for a replacement bike.
   
6. Keep your receipts
   Retaining receipts along with a home inventory will facilitate a smooth claims procedure. Therefore, be sure to preserve the physical receipt, digital copies, and photographs of receipts.
   
   Conclusion
   
   When you obtain a home insurance policy, be sure to create a home inventory at the same time. A copy of this home inventory list can be stored digitally in the cloud or sent to the insurance agent. If you adhere to the aforementioned points to compile a home inventory, it shouldn’t be a challenge.
   
   Disclaimer:
   The above information is solely for illustrative purposes. For further details, please refer to policy wordings and prospectuses before finalizing the sales.