What is a homeowners inventory and is it necessary?

Homeowners’ inventories explained

A homeowner’s inventory is an important piece of the homeowners insurance process. If a home and possessions are destroyed, a list of the contents will help with the insurance claim against the homeowner’s policy, as well as verifying the loss for income tax returns. It also can help a homeowner determine the proper amount of coverage to purchase in the first place.

The first step is to make a list of possessions, describing them, when and where purchased, and make and model numbers if applicable. Include copies of receipts, contracts, or appraisals.

For items like clothing, it is only necessary to list the amount of each category owned – pants, shirts, dresses – with notes, receipts, or appraisals for anything particularly valuable.

The inventory process can take a bit of time, so at the very least, homeowners should take an inventory of all expensive or major items in the home – like art, jewelry, or collectibles. Photographs or videotapes are a way to show many items at once.

No matter how the information is recorded, it’s important that the information be stored outside the home-at a friend’s house, in a safe deposit box, or, for computerized records, backed-up off-site. This way, if the home is damaged, the information will be safe, and available to share with the insurance company.