Many are unaware of what a home inventory entails and why it is crucial to have one. I wanted to shed light on the significance of maintaining a comprehensive Home Inventory and provide guidance on creating and updating it regularly. Let’s learn more about this important item.
What is a Home Inventory? A Home Inventory is documenting what you own and the estimated value. A good one encompasses all items within the household, both indoors and outdoors.
Why do I need a Home Inventory? A Home Inventory is important for preparing for the unexpected as well as various personal situations. Unforeseen events such as fire, tornado, theft, or floods can cause significant damage to personal property. A well-documented list can expedite the insurance claim process as well as maximizing claim payment by having a video and documented evidence of possessions. Personal situations such as taxes, estate planning, or divorce, are also another great reason to have a detailed home inventory as they serve as a reliable reference for property distribution and financial assessments.
How do I get started with a Home Inventory? The easiest way is to start by taking your smartphone on a video walkthrough of each room. Film a close-up of serial numbers and model numbers on appliances and mechanicals. Then take the video and create a spreadsheet of each room. Include: the Item, description, serial number (if appropriate), estimated purchase price, and purchase date. It is advisable to attach receipts for major purchases to the inventory. For general lower cost items such as clothes, you can do a rough count such as “8 dresses, 12 pairs of shoes, etc.” Ensure that all areas of the house are covered including drawers, closets, basements, jewelry, artwork, and garages. We have a home inventory spreadsheet template to help you get started. Call or text us at 630-665-1100 to get your copy. It is very important to have a back-up copy of your video, inventory list, and receipts in a secure location other than your home. Good spots would be at a safety deposit box, at a trusted friend’s home, or keep an electronic copy on cloud storage.
How often should I do a Home Inventory? Experts suggest setting a recurring date for once a year on your calendar to film a revised video and to update the spreadsheet with any new or different items. The first time doing a home inventory is the most laborsome, but regular updates go more quickly.
While creating and maintaining a comprehensive home inventory requires time and effort, it is a task that brings immense benefits during emergencies. Additionally, if you have high value or specialty items, we encourage you to make sure you have the right kind of insurance coverage as many policies only cover up to a certain amount or they require riders for things such as art or jewelry. As always, The Kingsland Group is here to serve you with your real estate needs. Contact us for further assistance and let us know how we can best be of service to you.