How to Create a Home Inventory List: A Complete Guide

In today's severe weather world, having an up-to-date home inventory is more important than ever.

Just ask Houston area residents that felt the effects of a rare derecho in May with 100 mph winds causing widespread damage in the Bayou City and then Beryl barreled through H-Town in July after making landfall on the coast as a Category 1 hurricane, knocking power out to millions and causing more destruction.

“This is Houston, Texas," Space City weather meteorologist Eric Berger told the Houston Chronicle. "We're right in the Gulf of Mexico, and we're vulnerable to this kind of weather.

Both the derecho and Beryl were billion-dollar weather events with the derecho responsible for at least eight fatalities and $5 to $8 billion in damages, and Beryl causing at least 22 deaths in the Houston area and AccuWeather's preliminary estimate for the total damage and economic loss from Beryl was $28 billion to $32 billion nationwide with most of it in Texas.

Whether due to natural disasters, theft, or unexpected accidents, knowing what you own can significantly ease the insurance claims process and ensure you have the right coverage.

This guide will walk you through the steps of creating and maintaining a comprehensive home inventory.

Why You Need a Home Inventory

Creating and regularly updating an inventory of your personal possessions offers several benefits:

• Insurance Accuracy: An accurate list helps you purchase the right amount and type of insurance. If you don't know what you have, how can you insure it adequately?
• Simplified Claims Process: In the event of a disaster, recalling every item can be overwhelming. A documented inventory makes filing claims easier and less stressful.
• Financial Documentation: A well-organized inventory substantiates financial losses for tax purposes or when applying for disaster assistance.

According to the Insurance Information Institute (iii), 5.3 percent of insured homes had a claim in 2021 with property damage, including theft, accounting for 97.8 percent of homeowners insurance claims in 2022. That figure was up from 2019 when 96.7 percent of the claims were property damage. Other facts from the iii:

• The average homeowner loss between 2018 and 2022 to property damage was $15,570.
• About 1 in 18 insured homes have filed a claim.
• About 1 in 35 insured homes have filed a property damage claim related to wind or hail.
• About 1 in 60 insured homes have filed a property damage claim caused by water damage or freezing.
• About 1 in 425 insured homes have filed a property damage claim related to fire and lightning.
• About 1 in 700 insured homes have filed a property damage claim due to theft.

Despite these numbers highlighting the frequency of claims and potential financial impact, less than half of homeowners (47 percent) said they prepared an inventory of their possessions to help document losses for their insurers, according to a 2023 Triple-I/Munich Re Consumer Survey.

Getting Started with Your Inventory: By the Numbers

1. Choose a Starting Point: Begin with a small, contained area, such as your kitchen appliance cabinet or a closet. This makes the task feel more manageable.
2. List Recent Purchases:  To get into the habit of maintaining your inventory, start by listing recent purchases before tackling older items.
3. Include Essential Information: For each item, record:
   1. Description.
   2. Purchase location.
   3. Make and model.
   4. Price.
   5. Any other relevant details.
4. Categorize Clothing: Instead of listing each clothing item individually, count them by general category (e.g., "5 pairs of jeans, 3 pairs of sneakers").
5. Record Serial Numbers: Document serial numbers for major appliances and electronics; these can be crucial for claims.
6. Check Coverage on High-Value Items: Jewelry, art, and collectibles often require special coverage. Confirm with your insurance agent that these items are adequately insured.
7. Don't Forget Off-Site Items:  Include belongings stored in self-storage facilities in your inventory.
8. Keep Proof of Value: Store receipts, purchase contracts, and appraisals alongside your inventory list.

“Take it one step at a time,” recommends Kyle Dean, President & CEO of Dean & Draper. “It's better to have an incomplete inventory than none at all. Keep going even if you can't finish in one sitting.”

Use Technology to Simplify the Process

Leveraging technology can significantly streamline your home inventory process. Digital home inventory tools and apps include:

• Smartphone Apps:
  • Sortly: Offers barcode scanning and photo cataloging.
  • Encircle: Allows room-by-room inventories with photos and videos.
  • Magic Home Inventory: Provides customizable categories and reporting features.
  • Nest Egg: Does not have a free version but for a small fee you can categorize your belongings, scan barcodes, and upload multiple photos of each item.
  • Home Contents: An in-app purchase allows uploading of photos, storing of receipts and warranty information, and even a coverage analysis to determine proper homeowners insurance.
  • Memento Database: Free version allows an upload of 50mg of storage and you can export your list to Google spreadsheets and other formats.
  • Home Inventory: Another app that allows the creation of records for your belongings, including the ability to scan barcodes and upload photos of your items.
    
    
• Cloud Storage Solutions:
  • Google Drive or Dropbox: Store photos, videos, and spreadsheets of your inventory.
  • iCloud: For Apple users, seamlessly sync inventory across devices.

Do your due diligence before using an app, program or platform, checking out reviews.

Utilizing Technology Effectively

Technology is nice but you must be able to use it effectively. Here are some tips to help you out:

• Take Photos and Videos: Use your smartphone to capture images and video walkthroughs of each room.
• Create Digital Receipts: Use apps to scan and organize purchase receipts.
• Use Smart Home Devices: Some smart home systems can automatically catalog connected devices.
• Utilize AI and Machine Learning: Emerging apps use AI to identify and categorize items from photos automatically.

By incorporating these digital tools, you can create a more comprehensive, easily updatable, and secure home inventory.

Keeping Your Inventory Up to Date

Your home inventory is only useful if it's accurate and accessible when needed. Here's how to keep it current:

• Add New Purchases Promptly: Make it a habit to update your list immediately after acquiring new items.
• Store Copies Safely: Keep a copy of your paper inventory outside your home (e.g., in a safe deposit box) and back up digital files on an external drive or cloud storage.
• Understand Your App: Ensure that any app you use backs up your information securely and that you know how to access it when necessary.

Dean & Draper Can Help Get Your Started Today

The best time to start creating your home inventory is now! Don't wait for a convenient moment—take action today to protect yourself against potential losses.

Here are three steps you can take immediately:

1. Download a Home Inventory App: Choose one of the recommended apps and start cataloging your possessions today.
2. Schedule a Home Walkthrough: Set aside time this week to video record each room in your home.
3. Review Your Insurance Policy: Contact your insurance agent to ensure your coverage aligns with your newly documented possessions.

For personalized advice on homeowners or renters insurance, contact Dean & Draper, with more than 35 years of helping tailor coverage for homeowners based on their specific needs, including comprehensive home inventories.

Home Inventory Frequently Asked Questions (FAQ)

Q: How often should I update my home inventory?
A: It's advisable to update your inventory annually or whenever you make significant purchases.

Q: What if I lose my inventory?
A: Always keep backup copies stored in different locations (both physical and digital) to prevent loss.

Q: How detailed should my inventory be?
A: Your inventory should be as detailed as possible, including descriptions, serial numbers, and photos for high-value items. For everyday items, grouping similar objects (e.g., "10 t-shirts") is sufficient.

Q: Can a home inventory help me identify underinsured items?
A: Yes, creating a detailed inventory often reveals items that may require additional coverage, such as expensive jewelry or collectibles that exceed standard policy limits.

Q: How can I ensure my digital inventory is secure?
A: Use password-protected and encrypted cloud storage services, enable two-factor authentication, and regularly update your passwords to keep your digital inventory secure.

The recommendation(s), advice, and contents of this material are provided for informational purposes only and do not purport to address every possible legal obligation, hazard, code violation, loss potential, or exception to good practice. Dean & Draper Insurance Agency specifically disclaims any warranty or representation that acceptance of any recommendations or advice contained herein will make any premises, property, or operation safe or in compliance with any law or regulation. Under no circumstances should this material or your acceptance of any recommendations or advice contained herein be construed as establishing the existence or availability of any insurance coverage with Dean & Draper Insurance Agency. By providing this information to you, Dean & Draper Insurance Agency does not assume (and specifically disclaims) any duty, undertaking, or responsibility to you.  The decision to accept or implement any recommendation(s) or advice contained in this material must be made by you.