Let’s try a little exercise: Can you list everything you own from memory?
Didn’t think so.
The fact is most people own more things than they realize. It’s easy to remember the cars, the computer, the TV. But what about that holiday china in the garage? Or every pair of shoes?
All of it is regarded as personal property for insurance purposes. And if your home is destroyed by fire or some other disaster, having a list of your possessions makes filing a claim easier — and helps you put your life back together.
Why should I complete a home inventory? What’s the best way?
Comparing the value of your belongings to the “contents” limit listed in your policy helps you make sure you have enough insurance to replace them if they are lost, stolen, or destroyed as a result of a covered loss. The easiest way to take an inventory is to usevideo, recording and describing items as you walk through your house. Or, you cantake photosand create a home inventory checklist.
Here are a few tips for completing and storing your inventory:
- Add brand names and descriptions where you can, especially on large-ticket items. Serial numbers are helpful to note.
- Keep any receipts you have with the list to make the claims process easier.
- Store your video or photo inventory offsite so you won’t lose it if your house is damaged.
- Update your personal property records when you purchase new furnishings and valuables.
- Though the task may seem daunting, it’s important to try. An incomplete inventory is better than nothing at all.
To understand how much stuff you have, develop a careful inventory of your personal property following these tips:
- Usevideo to record and audibly describe items as you move through your home.
- Whether you use still photos or video to develop your inventory, include brand names and descriptions where possible, especially on high-cost items.
- Keep any and all receipts on high-dollar purchases. Keep these receipts filed together with any instruction booklets, warranties, etc. that accompany the items.
- Store your video or photo inventory offsite or back it up with an additional drive.
- When you make new purchases, be sure to add them to your inventory.
How much insurance do I need?
We can assist you in analyzing your insurance needs and help you decide how to most effectively protect your personal property.
Finally, remember your homeowners policy only covers valuableitems such as jewelry, furs, art,and antiques, only up to set dollar amounts. If the cost of replacing them exceeds these limits, you may want to purchase scheduled personal property coverage.
The Insurance Information Institute hasmore details on this important practice here.
We hope you’ll never need the home inventory, but preparing for the worst can prevent a lot of hassle later!
FAQs
All of it is regarded as personal property for insurance purposes. And if your home is destroyed by fire or some other disaster, having a list of your possessions makes filing a claim easier — and helps you put your life back together.
Why is home inventory important? ›
All of it is regarded as personal property for insurance purposes. And if your home is destroyed by fire or some other disaster, having a list of your possessions makes filing a claim easier — and helps you put your life back together.
What are the benefits of a home inventory? ›
If you ever decide to declutter or downsize your home, a home inventory can be a valuable resource. It allows you to prioritize what to keep, sell, or donate, making the process more efficient and less stressful.
Why is it important to have a personal property inventory? ›
Not having a home inventory could delay your claims payment. Most insurance companies will want a record of your lost or damaged items before they will pay a personal property claim.
What is the primary reason you should maintain a home inventory? ›
In the event of a fire, wind storm, burglary, or other unexpected event, having a list or a visual reminder of your belongings can make a big difference in how much your homeowners insurance will pay, and thus how well you'll recover financially.
What is the main importance of inventory? ›
Maintaining the right amount of inventory prevents selling out of items and upsetting customers or over-ordering and having overstock that costs money. Businesses that don't manage inventory effectively face several risks, a big one being poor application of financial resources.
Why is it important to value inventory? ›
Every company that sells physical goods needs to determine the value of its inventory for accounting purposes. Since inventory typically accounts for a large portion of business assets, the way it's valued can significantly affect the company's profits, tax liability and asset value.
Should you have an inventory of your home? ›
An up-to-date home inventory can be helpful for: keeping all your important docs in one place, calculating how much home and contents insurance you need to avoid being underinsured, and. proving the value of your items in an insured event.
What is a house inventory? ›
A property inventory is a detailed report that documents the condition of your property at the start of a tenancy.
How to keep track of house inventory? ›
A home inventory can be as simple as a written list, pictures or video. Or use a home inventory app to help you compile your list. As you inventory your personal belongings, don't forget all of your drawers, closets, attic, basem*nt and if you're brave, take a look under your bed.
10 reasons to practice inventory holding
- Reach profit targets. ...
- Reduce lead times. ...
- Avoid supply chain disruptions. ...
- Avoid last-minute supply orders. ...
- Meet seasonal demand. ...
- Streamline production. ...
- Manage risk. ...
- Support promotions.
The purpose of the inventory is to provide a buffer between production and sales, smoothing out the flow of goods and ensuring that products are available when customers order them. To achieve this goal, companies must carefully manage their inventory levels, investing in an appropriate system if necessary.
What is the main reason for an inventory? ›
One of the main reasons for keeping inventory is to provide customers with the best possible level of service. However, many business leaders still spend sleepless nights worrying about finding the balance between product availability and supply chain cost.
Why is it important to determine inventory? ›
Optimal inventory management can increase market competitiveness, enhance brand reputation, improve productivity, and lower customer costs while generating customer loyalty through consistent availability of products.
Why is inventory count important? ›
Fundamentally it provides your business with an accurate count of what is in stock, which helps ensure that there are no discrepancies between the inventory system and the actual stock. Other benefits include: Reduce stockouts. Limit lost profits due to incorrect stock levels.
What is the point of use inventory? ›
Point of use inventory implies that an item's location is the exact location where the items will be used. Instead of keeping stock in a warehouse or other secondary location until it needs to ship to its user, the item's location is at the point of use location.
