Create a Home Inventory for Insurance Purposes

I've already shared how I created a home inventory for insurance purposes (I took video instead of making a list). This piece from The Street reminds us what a good idea it is to have a home inventory for insurance purposes -- so if anything happens to your home you can provide the insurance company a complete list of what is missing/damaged. Here are some of their suggestions:

The III offers software that can help organize your list of items. Some insurers, such as Nationwide, recommend using this program, while others, such as State Farm and Allstate, offer their own software. Any inventory will suffice, however, so long as it is comprehensive and organized.

In addition to a list of items, you'll need some proof that the items actually existed and were in good condition -- so you'll need to take pictures. That's much easier these days, since digital photography is relatively commonplace. (If you don't have access to a digital camera, you can also scan printed photos of your possessions.)

A quicker way to catalogue your items is to videotape the contents of your home. Although a video is less comprehensive than individual pictures, it will still provide visual proof of what you have (or had). Video also allows you to narrate as you go. Along the way, zoom in on details and open all doors and drawers so you don't miss anything.

You should also save receipts for any big-ticket items (things like electronics or furniture where prices can vary and you want to prove your stuff was good quality). You can store them in a folder along with your insurance information, but it is also a good idea to scan them and keep digital copies as well.

A couple final suggestions:

• Be sure to store your list/pictures/video off-site. It won't do much good if you have your list at home and your house burns to the ground. I keep my video in my desk drawer at work.

• Be sure to update your list/pictures/video when you get something new. I need to do this as it's now been almost a couple years since I did the last one.

How about you? Anyone out there have a home inventory? Any tips to making one that you care to share with the rest of us?

Comments

[Lauren]

I have a home inventory. I did it on recommendation from my rental/property insurance company, USAA. I just took pictures and store them both on my laptop and on the zip drive that I carry on my keychain.

[Ryan S]

If anyone knows the answer to this question, let me know. If you don't keep a home inventory, does the insurance company assign a default value for what the "typical household" contents would be? So for example if the typical household has $15,000 worth of stuff, but I only have $10,000, would thier be a benefit of not keeping a home inventory?

[Money Mama]

Ryan S -
So you can commit insurance fraud? Not a good idea.
If your stuff is worth $10,000, your goal should be to be reimbursed for $10,000, not $15,000.
Not a good idea to try to cheat the system, even if you do fel your pain and suffering ar worth the extra money.
Just a tip.

[James]

I also keep a home inventory (although this post is a good reminder to update it). I keep an excel spreadsheet with a list of all items I would want to be reimbursed for broken down by room (this makes it easier for me to check to make sure I didn't leave anything off). I also have a category for floating items that may not stay in any room (like my laptops). Then, I go through and take pictures of everything. Then, I zip up the pictures and spreadsheet. Here is the most important part. I email myself the zip file. My computer may crash, my backup may get lost, but unless Yahoo and all of its backup datacenters go down, then I will always have a way to get to my home inventory.

[MonkeyMonk]

I don't think Ryan S was necessarily trying to cheat the system -- I think he was just interested in knowing how insurance companies decide loss for people who have no inventory whatsoever. I'm assuming that you're still covered and depending on what their process is there may be an incentive for being willfully ignorant of the value of your stuff.

I like my stuff though and would like to be duly compensated so I made an inventory. I used the movie feature on my digital camera and just sort of narrated as I went along describing approximately when I bought everything and what the original purchase price was. I keep a copy encrypted on my computer and a 2nd copy on a CDR in my safe deposit box.

["Mo" Money]

I like the post by Kames. It makes sense to me to have the backup in a place where it is safe.

[Scott]

I found the III software about two years ago and have used that. Works for Mac and PC. Pretty comprehensive and saves time of building a spreadsheet yourself and forgetting a detail here or there.
Another reader mentioned storing info on zip drive. Either a secure USB and optical disk is what I use. Use encryption on the file for extra security. Make sure you put a copy of the III software on the disk/USB drive too - so you can review the data on whatever computer you have.
Someday I hope some of the online services begin to offer this service (again, with encryption). Think Google Stuff. Google already has my personal email, so what should I be concerned with about pictures and details of my stuff? :-)

[Mass Affluent]

I too have used the III software from knowyourstuff.org. I keep some video files separately, since the inventory program only stores images.

[Ryan S]

Money Mama,

You completely missed my point. And if thier were a default value, it would not be insurance fraud to accept the default value since you would be paying the default value rates all those years, instead of detailed inventory rates.

[Carrie]

We keep an emergency kit in a safe deposit box for this purpose. It takes what you have one step further. It's worth checking out if you are doing the work in creating an inventory because the last thing you want to deal with in an emergency (fire, flood, etc.) is the location of your credit cards.