Keeping a home inventory is an important exercise that aids you in three ways:

• It helps you establish as precisely as possible the replacement cost of your possessions so you can determine if your insurance protection is adequate.
• It substantiates ownership, which can be useful if you have a covered loss.
• A complete inventory can help you avoid overlooking items you should be compensated for in the event of a covered loss.

A simple way to do an inventory is to take a video or photos of your possessions.  Be sure to capture the make, model and serial number of your property.  Once you complete the video or photo record, store the images off-site.  A safe deposit box or a relative’s home are alternatives.

Here are some tips to help you make your inventory quick and easy:

• Go room-by-room to ensure you don’t leave out some items.
• Start with the five most expensive items in the room. Work your way to the next five, etc.  Within a short time you will have documented most of the items of value in the room.
• Group like items, such as CDs and DVDs, together. Start by counting the number you have and estimating a cost per item. Add titles and other information as a second step.
• Don’t forget items under beds, in closets or in attics. Attics, basements, closets, etc., frequently contain valuable possessions.
• Don’t overlook things you see everyday but may take for granted, like pictures or paintings on the wall.

Current replacement cost may be quite different from what you originally paid for an item. If a lot of time has elapsed since you bought an item, the price may have changed, especially if you bought it on sale or at an outlet. If you had to suddenly replace your possessions, you would not have the luxury of seeking out bargain prices.