How do I take a home inventory and why?

Once you have decided to buy a homeowners insurance or renters insurance, your next major task is to decide the amount of insurance. And undoubtedly you are in a fix deciding the right amount to cover your home and other valuable belongings! While the insurance agent or the insurance company representative will keep harping on for higher policy which may even be more than what you actually require, your budget might restrict you from buying a higher policy. Therefore you must take your decision judiciously after considering every factor associated with the insurance, including the amount of financial loss and other damages (legal and medical, etc.) and the actual coverage you would like to have to protect yourself from such losses. So you must be even more confused at this stage to take the proper decision.

 
Though it may appear to be a complicated task, deciding the right insurance amount is not at all a tough job. In fact it’s even easier than planning for your next holiday tour! Or your child’s birthday party! In both of the cases you would have made elaborate planning, considering the various items you would need and preparing the budget; there was a list containing everything and their corresponding prices, probably also the name of the stores where you could find the items. But you made it successfully without the things at your disposal. For your insurance policy, you have everything before yourself. It’s just enlisting the items you want to have coverage for and their valuations. In fact it’s too simple to be done by a high school student. This is what we call preparing a home inventory.

 
A home inventory comprises detailed information of all your personal possessions with their values. A complete home inventory not only helps you in estimating the right insurance amount, but also settles the claims easily and quickly in the event of damage to your property by any of the listed perils. An up-to-date home inventory also serves as an important document for verifying the losses for your income tax return. In the event of a burglary or fire where you lose much of your possessions, you cannot rely your memory to remember everything that have been lost. Therefore having a home inventory beforehand will help you to recover everything that were lost and will minimize your frustrations.

 
The most appropriate time to take a home inventory is when you are moving into a new home. But do not get intimidated if you have to take a home inventory for the house you have been living for some time. Getting an inventory may take time but the effort pays off in the long run. There are several methodologies available to take a home inventory, decide the one most suitable for you. You can take a written inventory by asking for inventory booklet from your insurance company. Taking pictures of your possessions is an easy way of taking inventory. Video inventory provides an added advantage of recording the comments about the items over photo inventory. In addition to these methods, various software packages are available that make the process of taking inventory comparatively simple.

 
After you have decided the method, start making list of all your belongings taking one room at a time. Describe each item in detail with its purchase date, price, model number (for electronic and electrical appliances, etc), and include the receipts if possible. Make a separate list for antiques, jewelry and other valuable items along with their appraisal. Keep updating your inventory as you make new purchases. You must have multiple copies of your inventory on any medium you have chosen; store this inventory in a safe deposit box or at any location away your home. Your insurance agent must also have a copy of the updated home inventory.

 
It may be a little bit time consuming to take a home inventory and you may be required to pay attention to the smallest detail. However all your efforts will bring due return when any untoward incident happens and your house and other possessions are destroyed. The home inventory will help you make the claims properly and also get all your lost items reimbursed.