If you’re in the process of choosing home insurance policy, it’s a good idea to make a home inventory and make a rough estimation of the insurable items in your home and their value before you choose the amount of policy coverage. This will do two things. Number one, it’ll ensure that you have enough insurance coverage to cover items lost (including your home) at replacement value so that you can get back on your feet as quickly as possible. Number two, it will make filing a claim easier and may make settlement easier as well if you do have disaster occur.
How should you do a home inventory?
There are several ways to do a home inventory. Several popular methods are the photo inventory, video inventory, or checklist inventory. For greatest effectiveness, it’s a good idea to combine a paper-based inventory method (checklist) with accompanying materials, such as videos and pictures of property you have in your home. You can find checklists and directions on how to shoot videos or take pictures online or through your insurance company.
One of the ways to do this is to create a paper checklist on your home computer (by using a program such as Excel); you can add, delete, and modify items on this checklist as things change. You can also buy programs specifically geared for home inventory, although these will be giving less flexibility than your own will.
What to include
Include anything that you’ll want replaced in the event you have a total loss because of fire, flood, etc. Check to see if there are any exclusions in your policy as well. Even if you may not think you will be able to have something on your list replaced, when in doubt, include it. You can also check with your insurance company to see what specifically can or cannot be included.