Home > Learning Center > Homeowners Insurance

Home Inventory List

Before and after buying homeowners insurance you need to prepare and maintain a list of personal possessions and their estimated value. A thorough and up-to-date inventory list can save a significant amount of money in the event disaster does strike and the homeowner must file an insurance claim. A good inventory record can also be invaluable when you have to negotiate a settlement with the insurance company, which will usually ask for evidence to back up claims.

A basic claim rule to follow is this: make a record of what you own, when you bought it, and what it cost. This may involve a lot of legwork, but the results can be useful. Generally, household and personal possessions are insured for half the amount of insurance on the structure. This means that if the home is insured for $100,000, the contents are insured up to a maximum of $50,000. However, additional insurance coverage for the contents may be purchased.

There are several ways to make a list of household goods and possessions. You can walk through the house carrying a small tape recorder. As you go through each room, describe all the furniture and valuables. Another method is to take photographs of the goods and possessions and then store the photographs in a safe location away from the house, preferably in a safe deposit box. Photos are good proof of ownership in the event an insurance adjuster questions a claim. Video cameras are also being used with increasing frequency to record the contents both visually and with verbal description that accompanies the picture.

Another helpful suggestion is to keep sales receipts from purchases of household possessions - everything from clothing to stereos. It also is a good idea to keep cancelled checks and credit card receipts as proof an item's cost.

By using a comprehensive inventory of household goods and possessions, you can determine if an insurer's policies are adequate and whether additional riders are needed to protect valuables. The list is extremely helpful in the event a disaster occurs. Insurance experts note that many people simply cannot remember what they have.

Source: Better Business Bureau