A home inventory accomplishes two important tasks that help you immeasurably: it gets you an organized list of your possessions for insurance purposes and second it starts your downsizing journey.
First off, for insurance reasons it actually helps you a few different ways. If you’re a worst case scenario type of person then yes, It helps you expedite insurance claims after theft, damage or loss. That way you don’t have to spend the time after a disaster trying to piece together an inventory of all your possessions (especially if a lot of them have been stolen or destroyed). Also, your insurance company is much more likely to believe your claim and pay it quickly if you have a home inventory that lists your possessions (along with receipts) you can produce rather than a bunch of thoughts scribbled on some paper after the fact. Don’t get us wrong, your average insurance company isn’t going to wait until you have a disaster and then say you don’t own any pots and pans or jackets. However, they might get anxious and start to ask some questions if you tell them you actually had a pantry full of expensive cookware or a walk in closet full of fur coats without the documentation to back it up.
Also, sometimes you can get financial assistance following a disaster. When you’re applying you’ll need to substantiate your financial losses, a well organized home inventory is a huge leg up in this process.
Finally, when you’re initially looking for insurance coverage one of the questions you have to ask yourself is what kind of coverage do I need? What’s the dollar amount I want for my limits and deductibles? Are there any items that are abnormally expensive (maybe you have a really nice jacket, or an electronic item that is top of the line, you’ll want to point those out to your agent!)? Having an accurate list of all your stuff prepares you to talk with your insurance advisor about these proper coverage limits.
Okay, so now you know why you should do a home inventory, so how should you go about it? We recommend rolling up your sleeves and breaking out the camera, pen & paper and video camcorder..or, you know, your phone would also work! J
A good start is to do a complete video walk through of your dwelling while describing what you’re seeing as you walk along. “Hall closet, including Ping Eye 2 Golf Clubs, 2 Tennis Rackets, Timberland Hiking Boots, 3 Snow Hats, 2 Leather Gloves,” is an example. You’ll want to backup this video with a picture record of your belongings. Remember to make notes, and include make or model numbers, of what you’re photographing as you do it.
There have been a lot of advances in the world of home inventory apps, letting you use your phone or iPad to keep track of what you own. The Balance did an update in May of their 7 Best Home Inventory Apps of 2020, and it’s well worth a read if you’re in the market. A great app we at Expert Owls love that didn’t make their list is Encircle, available for both Android and iOS for free. It’s currently the #1 free home inventory application for download, and did you notice it was free? We love that!
Don’t forget to backup your digital files, either creating a physical copy yourself or making sure the information you put into your app is backed up by the developer.
And always remember, if you’re not up for downloading and setting up a new application, or breaking out your video camera, pen & notepad to inventory and take extensive notes, we here at Expert Owls are always ready to do all of this for you, just give us a call!
Okay, so now that you have any idea of why you should do a home inventory, and how you should go about it, let’s get down to what you should document. You’re going to want to start in one room in your house and go from there. Just diving in can be overwhelming at first! Start with basic information: record each item, where you bought it, what you paid and any other details that might help if you need to make a claim. Clothing you can count in its entirety, for example 6 sweaters, 5 pairs of jeans, etc. And you don’t have to get too crazy with the itemization, an adjuster is likely to create a bulk estimate of items – for example, $200 for everything in your utility closet. On major items (like your electronics or your appliances) you’ll want to find and note serial numbers. And don’t forget that your possessions you keep at a storage unit are also covered by your homeowners insurance, so include those too.
Remember when we mentioned before that home inventories give you an idea if you have enough coverage? This comes into play on your big ticket items: jewelry, art, collectables, etc. Those items may be high enough (or increased enough) in value where you may need special coverage separate from your standard homeowners policy. You’ll want to check with your advisor when you’re writing your coverage and definitely before disaster strikes! Here is where it really pays off to have all sales receipts and appraisals that you have on hand to help if you need to make a claim on one of your more expensive (or hard to replace!) items.
And don’t forget about collecting all of your key physical documents into an Emergency Folder. Having everything together that might be difficult (if not impossible!) to replace will give you peace of mind and help you get aid quickly after a disaster. For your difficult to replace items we’re talking Birth & Marriage Certificates, Social Security Cards & Passports, Will or House deeds. Paperwork that might help to have on hand after an emergency might be your Insurance Records (your policies or recent Home Inventory) or your Medical Details (Prescriptions or any important Medical Records). It’s also helpful to include some cash to have on hand just in case.
Securing your originals into a fireproof, watertight safe (or in a safety deposit box is even better) might help them keep safe in case everything else goes wrong. Also smart to have copies as a backup, maintaining electronic copies on a secure cloud storage. This makes sure you still have access to your records & financial details if you’re away from your home or if the originals were destroyed in the disaster you just lived through!
1) Collect Key Documents in a “Grab-N-Go” Folder – Pull together any papers that might be difficult or inconvenient to replace, as well as anything that might help you get aid quickly after a disaster, and some cash.
Insurance Records – Insurance policies, Recent Home Inventory.
Birth & Marriage Certificates
Social Security Cards & Passports
Wills & Deed or lease to home/car
Medical Details: Prescriptions & Important Medical Records
Pet Documents: Pets medical records, a recent photo (in case you get separated)
2) Secure the originals if possible in a fireproof, watertight safe or in a safety deposit box
3) Prepare a backup. Safeguard critical documents by maintaining electronic copies on a secure cloud storage service, and use a password manager to save account login details for financial accounts. That ensures you still have access to important records and financial details if a disaster occurs while you’re away from home, or your originals sustain damage.
INSURANCE:
In 2019 48% of adult residents developed an Emergency Plan and have gone over it with members of their household
Emergency Documents = Birth Certificate, Driver’s License, Passports, Last Will, Medical Documents, Social Security Card, Insurance Documents, House Deed/Documents
52% Homeowners have prepared an inventory of possessions to help document losses in an emergency.
$9799 = Average homeowners insurance claim from 2011-2015
TO DO:
4) Create A Home Inventory – comprehensive report – which documents your personal property – makes it easier for you to file an insurance claim in the wake of a disaster. Some apps aim to help, but you can also prepare you own with photos and videos of your home and a list of items. Save or scan receipts and appraisals when possible, especially for valuable items.
5) Collect Key Documents in a “Grab-N-Go” Folder – Pull together any papers that might be difficult or inconvenient to replace, as well as anything that might help you get aid quickly after a disaster, and some cash.
Insurance Records – Insurance policies, Recent Home Inventory.
Birth & Marriage Certificates
Social Security Cards & Passports
Wills & Deed or lease to home/car
Medical Details: Prescriptions & Important Medical Records
Pet Documents: Pets medical records, a recent photo (in case you get separated)
6) Secure the originals if possible in a fireproof, watertight safe or in a safety deposit box
7) Prepare a backup. Safeguard critical documents by maintaining electronic copies on a secure cloud storage service, and use a password manager to save account login details for financial accounts. That ensures you still have access to important records and financial details if a disaster occurs while you’re away from home, or your originals sustain damage.
“The whole idea of insurance is to make you whole, not under-pay you or over-pay you,” said Robert Hunter, director of insurance for the Consumer Federation of America. Valuing possessions is where that gets tricky (and where having an itemized record of your belongings can help you. You have a log of your items, and also visual evidence to help you make your case.
To Make A List
1) There are some helpful apps out there: Encircle (Free Android/iOS) & Nest Egg iOS $3.99). You can hire a company like Expert Owls to do if for you.
2) Take an overall video of each room in your house. Take overall snapshots for additional coverage. Take some pictures of contents of invididual drawers, inside storage bins, closets & their shelves. Don’t forget your garage. You don’t need everything.
3) Take special note of your high priced items. You’ll want receipts or plenty of documentation for expensive by nature stuff like furniture & appliances. Or maybe a high end coat or pruse you bought yourself one year. “Most insurance companies… they’re not going to try to say you didn’t have any pots,” he said — but they might quibble over the idea that you had drawers of pricey cookware, without proof.
4) Remember to add to your list as you buy new items and remember to keep a cloud copy as a backup