The Importance of a Home Inventory and How to Make One

When homeowners think about the value of their home, they usually think about the physical structure of the home and the property itself. They fail to recognize the thousands of dollars they have invested into their belongings within the home itself. In the event of an emergency caused by inclement weather or a fire, you will lose your belongings in addition to your home. The importance of having a home inventory is paramount to your emotional and financial well-being.

What is a Home Inventory?

A home inventory is list of the belongings in your home and their value. It is intended to protect homeowner’s in the event of a break-in or natural disaster. A home inventory will help you account for all of the stolen or damaged goods within your home. Creating a home inventory may seem like a daunting task requiring too much of your time, but it will be worth every minute spent in the event you need to use it.

Why You Need a Home Inventory

We don’t like to think about the inevitable emergencies that life brings our way. But they happen, and it is best to be prepared for them if they should arise. There are many reasons why you should have a home inventory.

1- It will protect your financial well being after an emergency.

Listing out the belongings of your home and their worth will allow you to accurately portray the value of the belongings within your home. This will help tremendously when filing insurance claims.

2- It will prevent further emotional stress and trauma.

In the wake of a serious emergency our brains are not operating at their best. Natural disasters or break-ins come with a lot of emotional trauma that individuals need to work through. Having a home inventory already in place will make the process of recovering much simpler and will save homeowners the headache of trying to realize the value of everything they owned.

3- It will speed up the insurance claims process.

Having a completed home inventory to supply your homeowner’s insurance company with will save you time and money. Having everything listed and organized will assure that you receive the proper settlement from your insurance company and you aren’t being cut short.

How to Make One

Now that we’ve covered the importance of a home inventory, you need to understand how to make one. The task itself does not need to be overwhelming. Follow the steps listed out below to make your home inventory process seamless.

1- Speak With You Insurance Company

Before creating your inventory contact your homeowner’s insurance company to understand what information they need on your home inventory. Make sure your inventory meets any specific reimbursement guidelines the insurance company has.

2- Decide where you want to create your inventory.

It is smart to have your inventory created in several different places. You can choose to have your inventory be digital so it can be accessed from electronic devices. You can also keep a couple of paper copies within a fire safe box in your home and in a safe location outside of your home as well. Having several copies saved will assure that one will be accessible after the emergent event.

3- Create Your Inventory

Think of all of the belongings you have within your home including: furniture, clothing, artwork, appliances, collector’s items, electronics, jewelry, dishware, bedding and linens. Remember that no two houses are the same, so list all the unique items you have in your home. Go from room to room to remind yourself of any belongings you have left off of your list.

Creating and maintaining a home inventory is another way to protect your financial well being. Email Carolina Money Minders today for guidance on how to protect your home and financial assets.