Introduction
Conducting a home inventory is one of the most valuable tools you can use to protect your personal property. By creating a detailed list of your belongings, both inside your home and in other areas such as garages or storage sheds, you can be better prepared for unexpected events like fire or theft. A complete inventory supports insurance claims, police reports, and even tax filings, making it a smart step for any homeowner or renter.
Wasn’t there a vase on that table in the study?
It would be quite an accomplishment for any of us to recall all of the contents of any one room, even at the calmest of moments. Remembering everything that’s in your house and garage after a fire, theft, or other calamity would be virtually impossible. Yet that’s what you’ll be asked to do when you submit a claim on your homeowners insurance, unless you’ve already prepared a written inventory of your possessions.
Omitting items or failing to include an adequate description of an item may prevent you from receiving full compensation from your insurance company. Since the whole point of buying homeowners insurance is to be compensated for a financial loss, why bet everything on your memory? You’ll also find that a detailed inventory helps when filing a police report or when trying to prove a loss to the IRS.
Include everything but the kitchen sink
Under the terms of your homeowners policy, your claim for damaged or stolen property should show the quantity, description, actual cash value (i.e., the depreciated value of an item), and amount of loss associated with each item. You’re also asked to provide copies of bills, receipts, and other documents that support the figures in your claim. If possible, keep copies of these documents off-site, too. It’s also important to include the purchase price and purchase date of every item and to note the serial numbers and model numbers of any appliances and electrical equipment.
Listing the contents of each room and building separately promotes thoroughness and will help you organize your inventory. Make sure you catalog all the contents of every room, including rugs and carpets, wall hangings, curtains, blinds, and draperies. Be descriptive–refer to colors, dimensions, manufacturers, and composite materials whenever you can. Make sure you include component parts and the contents of drawers, shelves, closets, storage boxes, and built-in cabinets. Describe not only the bed but also the headboard, mattress, and bedding. Try to identify every item that you would have to box or carry out if you were to move out of your home. The only things you should leave out of your inventory are the four walls, the ceiling, the floor, and the fixtures (e.g., toilets and sinks).
Give a full description of any expensive clothing items, such as leather or wool coats, boots, suits, or formal wear. If you’d rather not describe every item of clothing, at least list quantities (e.g., six wool sweaters, two pairs of sneakers, two pairs of corduroy trousers).
Make sure to include the items stored in your attic, basement, garage, or outbuildings. Sports equipment tends to be expensive and should be described in as much detail as possible. The same goes for jewelry, furniture, antiques, collectibles, and other expensive items covered by your policy. Don’t forget tools and outdoor equipment like lawn furniture and barbecue grills.
This isn’t a test; you won’t be graded on your inventory for accuracy, completeness, or legibility. If you can’t stand this overly detailed approach, at least take the time to jot down any items valued at $50 or more. Hopefully, you’ll never have to use your inventory, but if you have to deal with a catastrophe, you’ll be happy you took the time to make a permanent record of all your possessions.
Home Inventory Checklist
Creating your own home inventory can feel overwhelming, but we’ve made it easier. Download our Home Inventory Checklist to help you get started. This practical and straightforward tool walks you through each room and category, making sure you do not miss essential items.
Use it as a guide while walking through your home, and be sure to save a copy in a secure location.
Getting the picture
Since a picture’s worth a thousand words, consider taking a photograph or videotape of each room, with separate photos for big-ticket items (e.g., your valuable coin collection). If you use a camera, make sure you label each photo with notes about the items shown. If you use a video camera, provide a running commentary describing every item (e.g., date of purchase, price) that comes into view. Make sure to date-stamp the video, and take a shot of that day’s newspaper. Contact your homeowners insurance agent; some offer a videotaped inventory as a free service to their customers.
Keep your inventory safe
Remember the purpose of your inventory. If there’s a fire or catastrophic event, it’ll do you no good if it’s burned up in the fire or washed away with the flood. Regardless of whether the inventory is recorded on film, videocassette, computer software, a sketch pad, or the back of an envelope, keep a copy of it stored somewhere safe, like a safe-deposit box at a bank, or your desk at work.
Conclusion
Taking the time to document your possessions may seem tedious, but it can make a major difference during a loss. A well-organized home inventory helps ensure you receive accurate compensation from your insurance company and can speed up recovery after an emergency. Whether you keep written records, photos, or videos, always store a copy in a safe place away from home. When the unexpected happens, having a clear record of what you own brings peace of mind and financial protection.
Scarlet Oak Financial Services can be reached at 800.871.1219 or contact us here. Click here to sign up for our weekly newsletter with the latest economic news.
Source:
Broadridge Investor Communication Solutions, Inc. prepared this material for use by Scarlet Oak Financial Services.
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on individual circumstances. Scarlet Oak Financial Services provide these materials for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
