How to Create a Home Inventory

If your personal belongings have ever been damaged or stolen, you know how inconvenient it can be to replace them. A home inventory can help. Simply put, a home inventory is a detailed list of everything you have in your home. In this article, we’ll explain how to create a home inventory and how it can help you when filing a claim.

What is a home inventory?

The first step in protecting your personal property is having homeowners insurance or renters insurance in place. The second step is creating a comprehensive and organized checklist of your belongings, including their monetary value. This is called a home inventory.

If your personal belongings are stolen or damaged in a covered loss, such as a fire or burst pipe, a detailed home inventory list is your best friend. By providing your insurer with an up-to-date record of your items, it will streamline the claims process and help ensure that you get compensated for your losses.

Why is a home inventory important?

There are several advantages to creating a detailed inventory of the items in your home or apartment.

Proves ownership

Let’s say that your home was burglarized, and some valuable items were stolen. Insurance companies will often require some form of physical evidence that you own the items you’re claiming. A home inventory checklist can act as legal proof of ownership, especially if your inventory includes receipts, photos, product information or serial numbers. Creating an inventory could also help you avoid future legal disputes.

Simplifies the claim process

Generally speaking, if you provide detailed information of damaged or stolen items, insurance companies are more likely to process your claim quickly and offer a higher settlement. This is because clear evidence of ownership and value has been presented.

Provides disaster assistance

Creating a home inventory can also benefit you after a natural disaster. For example, if you apply for relief through FEMA (Federal Emergency Management Agency) or a local state agency, a detailed home inventory can accelerate the application process, as it provides clear evidence of your losses.

Creating a home inventory

If you’re like most homeowners, you probably own a lot of personal household items. As a result, the task of creating a detailed inventory list may seem intimidating at first. In reality, though, the process is rather straightforward. Simply follow these three steps to create a record of your belongings:

Here are some additional things to consider when creating a home inventory list:

• Keep receipts – Some insurance companies advise customers to have at least two pieces of evidence to prove ownership of items. A receipt is a prime example of evidence. You should always try to save email receipts or paper receipts. You can also take a digital photo of a paper receipt.
• Be specific with expensive items – Make sure to include photos and descriptions for pricey possessions. The more details you document, the fewer obstacles you’ll encounter later when filing a claim.
• Use a home inventory spreadsheet – Spreadsheet templates provide a simple way to organize your home inventory information. You can have columns devoted to serial numbers, purchase dates, costs and more. You can download a free home inventory template online and then customize it to fit your unique needs.

What is personal property coverage?

Personal Property coverage pays to replace your belongings if they’re damaged or stolen due to a covered event, such as fire and theft. Also known as Coverage C, Personal Property is a standard coverage within your homeowners insurance, condo insurance or renters insurance policy.

Here’s a list of common personal items that people file home insurance claims for:

Should I schedule each piece of jewelry individually or collectively? 

The best way to protect your valuable jewelry is to individually schedule each item. This way, if they’re damaged in a house fire, your homeowners insurance carrier already knows the pieces of jewelry you own and the years they were bought.

Another option is to purchase blanket coverage for your jewelry collection. Blanket coverage is an endorsement that covers multiple pieces of personal property from the same category, such as jewelry, fine art or silverware. With this type of coverage, you don’t need to provide details on each item up front.

How home claims work

A home insurance claim is a formal process where you notify your insurance company about an event that caused damage to your house or personal property. Basically, you are asking the insurance company to reimburse you for the cost to repair the damage.

For your homeowners insurance company to consider your claim, the damage or loss must be caused by something that your policy covers. These causes are known as covered events or perils. For example, you might file a home insurance claim if your roof is damaged by a fallen tree, or if your laptop is stolen.

How will I receive my claim payment?

Insurance companies typically pay claims by direct deposit, electronic check or printed check. The exact payment process and the amount you receive will depend on several factors, including your homeowners insurance policy, the claim type, your deductible amount, the state you live in, and whether or not you have a mortgage.

Do deductibles apply to every claim?

A deductible is the amount you must pay out of pocket before your insurance kicks in. Generally speaking, a deductible will apply to home insurance claims if they are made under your dwelling, personal property or other structures coverage. Other types of coverage may not have deductibles, like personal liability coverage.

Remember, if the cost to replace your personal item is less than your deductible, you may not want to file a homeowners claim. Check your policy to find out your deductible amount.