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How to Create Home Inventory in Systematic Manner

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Published on February 16, 2022. EST READ TIME: 4 minutes

When you have a detailed list of every single material in your house and the necessary bill and documents, it becomes easier to claim a home insurance policy. An up to date home inventory list comes in handy when your property gets damaged due to natural calamity, fire, theft or any unwanted event. A properly managed home inventory records the insurable assets that help you settle a covered loss or claim. Apart from this, it may also help verify tax-deductible property losses and determine the right amount of insurance coverage you need.

What is Home Inventory?

A home inventory is a list of everything in the house, from furniture to appliances to expensive valuables like jewellery and antique keepsakes. Home inventories have several important uses. They can help verify losses on your income tax return. In addition, it can help choose the correct amount of personal property coverage on your home or renters insurance. A home inventory can help expedite home insurance claims by providing you with a list of damaged or burglarized belongings. In addition, it can help maximize your payout after filing a home insurance claim. If any damage occurs to your property occurs in a disaster that’s covered by your policy, like a fire or explosion, you can point to your home inventory list to provide evidence of the loss. To increase your chances of a successful claim, it also helps to include photographs or receipts of the damaged property, especially if you’re claiming a loss on a big-ticket item.

How to make a home inventory

There are numerous ways to make an inventory. However, regardless of which method you choose, be sure to do the following when making your inventory:

1. Start small

It is wise to start in a small room area and work your way outward. Then, move on to the next, once you're done with that particular room or space. Most people commit the mistake of starting the list with big items or list items at random.

2. Be descriptive

Suppose you cannot indicate the price of a particular item; a simple description will do. Note that the insurer will process home insurance claims faster if you are clear about what is lost. It will be of big help if you mention details like date of purchase, price of purchase, the make model name, serial number, etc.

3. Group your items by category

It is best to categorize the type of product being inventoried and your amount. For example, you can note "10 shirts" or "7 pots and pans" rather than going into detail about each item.

4. Be mindful of expensive items

Be sure to take note of any big-ticket items you own and record those in a separate section of your home inventory list. For example, suppose you have any expensive jewellery or electronics. In that case, you may need to add enhanced coverage like a scheduled property endorsement to your homeowner's insurance to be reimbursed for their total value on a claim. Be sure to talk to your insurance agent to see which of your belongings need supplemental personal property coverage.

5. Don't forget about the stuff outside your home

Homeowners insurance also includes a limited amount of coverage for belongings that are damaged or stolen away from your home, typically up to 10% of your policy's property coverage limit. That means if someone breaks your bicycle lock and takes your bike while it's locked up outside your workplace, your home insurance can reimburse you for a new bike.

6. Hold on to your receipts

Having receipts in addition to a home inventory will make for a seamless claims process. Therefore, be sure to keep the paper receipt, electronic copies and photographs of receipts.

Conclusion

When you purchase a home insurance policy, ensure that you create a home inventory simultaneously. A copy of this home inventory list can be saved digitally in the cloud or mailed to the insurance agent. If you follow the points mentioned above to make a home inventory, it shouldn’t be difficult.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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