A HOME INVENTORY - IS IT WORTH IT?

With the devastating bushfires in the Macedon Ranges and Mitchell shires recently, it's timely to emphasise the importance of being prepared for an emergency and having a detailed home or business inventory. A home inventory is maintaining a documented record of the contents of your home.
If your home is struck by a natural disaster your insurers will ask - 'what property was lost, destroyed or stolen'. The more thorough you document your contents, the easier it will be to have a successful insurance claim.
Too often, we forget about personal valuables stored in wardrobes, cupboards or drawers. Preparing a home inventory will help you remember what you have.

Why have a Home Inventory

Insurance value - Knowing what you own will ensure you're insured for the full value of your items. Make particular note of high value items such as jewellery, collectibles, artworks, stamp and coin collections and antiques as they might need separate insurance or be listed separately on your policy to insure for their full value.
Disaster recovery - If a natural disaster or theft happens would you know the serial number, make and model of what was stolen or damaged? Are your receipts in a safe place?
Moving and Storage - If you're planning a move, an inventory of what you're moving will ensure the removalists get all of your items to their destination and it protects your items
Estate planning - There may be items you want to leave to a specific person so having an inventory is useful to start this process.

Documenting your Possessions

Photograph

Photographing your belongings is a visual way to record all of your possessions, and demonstrates ownership and value of each item. Include full-room shots, as well as close-ups of items. Ensure you photograph inside drawers, cupboards and wardrobes. Start in one room and methodically work your way through the entire house. Include as much identifying information as possible such as brand name, make, model and serial numbers.

Video

Video is an even more effective way to record your possessions, especially as you can record audio with the images. Describe items in detail and any other identifying details whilst filming your home room by room. This increases the authenticity of ownership and provides an irreplaceable reference file. Be sure to zoom in on important features of each item, such as brand, make, model, serial number as well as where and when it was purchased, approximate price paid and approximate replacement price.

Written

Walk through your home, room by room, and make a detailed list of everything that you would want replaced. Create a spreadsheet and list in detail the item, make, model, serial number, date of purchase, price paid and where it was purchased from. Thoroughly document the contents in each room using this procedure, then create an electronic master list or a folder for the entire house. You can also scan your photos and receipts into your electronic file to keep it all together in one document. If you're making a folder, label the tabs in the folder room by room and include all your purchase receipts, warranties, manuals and proof of ownership documentation, so that all this is housed together.

What items to include in the Inventory

When preparing your home inventory, include any insurable or valuable item. You should also inventory each family member's clothing, shoes and accessories to demonstrate the quantity of items, as well as any collections such as shoes, handbags or 'big ticket' items. The more you demonstrate to the insurance company what you own, the better your claim process will be.

• Electronics, appliances, kitchenware and cookware
• Furniture, soft furnishings (lamps, cushions, rugs etc.), fittings and fixtures
• Personal items, heirlooms, antiques, collectibles, artworks, jewellery, memorabilia
• Clothing, accessories, shoes
• Glassware, crockery, cutlery, tableware
• Books, cd's, dvd's, cameras, video and computer equipment
• Landscaping, decking, outdoor fixtures & furniture, the tool or garden shed,
• Garden tools, outdoor machinery (lawn mower, whipper snipper etc.)
• Vehicles (cars, boats, bicycles) and machinery

Whilst inventorying, you may decide to purge a lot of your belongings. Place a box in the room you are inventorying and place those items in the box to be either sold or donated.

Things to remember

• Update the inventory annually
• Update the list when you purchase, sell or discard an item
• Don't forget to inventory the garage, tool shed, the exterior of your house, including landscaping and fencing
• For antiques or other difficult-to-price items, such as a stamp and coin collections, antiques, jewellery or artwork, you may need a professional appraisal and the items may need to be listed specifically on the insurance policy.

Storing your Inventory

Keep your inventory, insurance policies and other important documents in a secure location and keep a duplicate set in a fire/waterproof safe at home. Include important documents such as wills, deeds, titles, stocks, birth certificates, passports, bank account numbers, credit card numbers and income tax returns. Keep at least one duplicate in a second location offsite.
Keep a copy saved on your computer, as well as an online backup like Dropbox. A USB device or external hard drive will also store all of your information and allow easy access in case needed.
When backing up digital files, a USB or Hard drive can be useful. Simply copy the files onto the drive and keep it somewhere safe, preferably away from your home. Again, this is to prevent total loss in case your home experiences severe damage.

Conclusion

Preparing a home inventory may be time consuming, however the risks of not having one are high.There are a number of web based personal inventory managers available, as well as apps for your phone or tablet to file your Home Inventory in. Ask your insurance company if they provide a Home Inventory check list.

Contact me on 0408 727 010 for further information or if I can assist you preparing your inventory. Alternatively, check out our Property Services page for more information about the services we offer.

If you have any home inventory suggestions, tips or resources that you wish to share, please either contact me or share those on our blog.