A home inventory is a detailed, written list of your personal property, including everything in your home and other structures like garages, tool sheds, and storage units. This list should include not only your possessions but also those of family members or others living in your home. Ideally, you should create a home inventory when you move into a new place and update it annually to reflect new additions or discarded items.

Can You Remember Everything in Your Home?

It’s difficult to recall all the contents of a room, even on a calm day. Now imagine trying to remember everything after a fire, theft, or other disaster. Without an updated inventory, you could be scrambling to recall lost items when filing a claim with your homeowners insurance. A home inventory ensures you’re properly compensated for your losses and can be a big help when filing a police report or proving a loss to the IRS.

What to Include in Your Home Inventory

Under your homeowners insurance policy, claims for damaged or stolen property typically require a detailed account of each item, including quantity, description, and actual cash value (the depreciated value). It’s also important to keep supporting documents like bills, receipts, and warranties. Store copies of these documents off-site or in the cloud to protect them in case of theft or disaster.

Here’s what to include in your home inventory:

• Rooms and Structures: List items in each room separately for thoroughness, including all personal belongings like rugs, curtains, blinds, and wall hangings. Be descriptive—note colors, dimensions, brands, and materials.
• Appliances and Electronics: Include the purchase price, purchase date, serial numbers, and model numbers for appliances, electronics, and valuable gadgets.
• Furniture and Clothing: Don’t forget to describe valuable clothing like leather jackets or formal wear, and break down furniture items by room.
• Sports Equipment and Tools: These can add up quickly, so list details for bikes, sports gear, power tools, and lawn equipment.
• Collectibles and Jewelry: For high-value items like antiques, jewelry, and collectibles, be as specific as possible, and consider getting appraisals to ensure proper coverage.

For everyday items like clothing, you don’t need to be as detailed. For example, you can simply list “five wool sweaters” or “two pairs of boots.” However, for high-value or sentimental items, try to be as precise as possible.

Documenting Your Inventory

Photos and videos can make a huge difference when documenting your possessions. Photograph or film each room and take close-ups of valuable items. When recording, give commentary about purchase details and condition, and remember to date-stamp the footage. A picture really is worth a thousand words, especially in an insurance claim.

Home Inventory Apps Can Help

The process of documenting everything in your home can be overwhelming, but technology makes it easier. Apps like Sortly, Nest Egg, MyStuff, and Magic Home Inventory allow you to organize and store your home inventory in the cloud. Many apps offer features like barcode scanning and cloud storage for added convenience. Be sure to research which app best suits your needs, as prices range, and availability may vary depending on your device.

Some insurance companies offer free home inventory apps to their clients. For example, Liberty Mutual offers an app, allowing users to upload and store their inventories digitally. Before purchasing an app, check with your insurance provider to see if they offer one that’s free and user-friendly.

Keep Your Inventory Safe

Your inventory is useless if it’s destroyed in the very event you’re protecting against. Whether it’s recorded on paper, digitally, or in the cloud, keep a backup stored in a secure location. A safe deposit box, office desk, or cloud storage like Google Drive can be great options. This way, no matter what happens, you’ll have access to your inventory when you need it most.

The Bottom Line

Creating and maintaining a home inventory might seem tedious, but it’s an invaluable tool when it comes to protecting your assets. Whether you opt for a simple written list or a fully digital, photo-documented inventory, taking the time to organize your belongings now can save you significant stress and help you recover more quickly if disaster strikes.

At Navalign Wealth Partners, we’re here to help you protect what matters most. From guiding you through home insurance details to creating a comprehensive financial plan, we offer personalized advice tailored to your needs. Reach out to us today for financial planning guidance and peace of mind for your future.