Home Inventory Can Save Insurance Headaches

Many of your most prized possessions sit in your home, so it certainly behooves you to be sure everything is insured and properly accounted for.

The big question is would you be able to note all the possessions you have acquired over time if they were destroyed by a fire or other disaster?

With an up-to-date home inventory, you can get your insurance claim settled quicker, verify losses for your income tax return and acquire the proper amount of insurance.

The first thing to do is compile a list of your possessions in detail, stating where you acquired it and its make and model. Be sure to include any sales receipts, acquisition contracts, and appraisals you have.

For those just getting set up in a house, beginning an inventory list is not too tall of a task. For those who have been in a residence for some time, while it can be a more difficult task to compile the list, it is certainly worth it. The best thing to do is begin with recent acquisitions and then remember whatever you possibly can in regards to older items in your possession.

When it comes to big ticket items, things like collectibles, jewelry and art work could possibly have grown in price since the time you acquired them. In that case, check with your insurance agent to determine if you are adequately insured.

In order to protect you, it is advised to take pictures of the items and rooms they are in. On the back side of the pictures, make note of what is in the picture, and where and when it was purchased.

Next, videotaping an item is also a good idea. It doesn’t take that long to walk through the home videotaping the items in it and recording for your protection.

Homeowners or renters can also utilize a personal computer to record their home inventory. It is not uncommon for personal finance software packages to include a homeowners’ room-by-room inventory program.

Another item to do is storing the list, pictures and recordings in a safe place (not inside the home or apartment).

It is best to maintain the inventory along with receipts in your safe deposit box or at a friend’s or relative’s home. This will give you some peace of mind knowing that you have something to give to your insurance representative should the residence be damaged.