Creating a Home Inventory for Insurance Purposes
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FacebookDo you have a home inventory? If you’re anything like us, you don’t. While we used to have a video inventory, it’s woefully out of date — and to be perfectly honest, I’m not even sure where it is. Obviously, this means that it would be pretty difficult for us to put together (and substantiate) an accurate claim if something bad were to happen to our home.
Since creating an inventory of everything that you own can be a daunting task, I thought I’d point out a free software tool designed to make the job easier… The Insurance Information Institute has put together a freely downloadable home inventory software package called “Know Your Stuff.”
While I haven’t ever used it, it looks pretty nice. You start by naming all the rooms in your house, and then you add items to your inventory on a room-by-room basis. You can even add photos of your stuff and scans of your receipts. And best of all, it’s available in both Mac and PC versions.
Once you’ve pulled it together, you can print out a copy for safe storage, or stick one on a flash drive that you stash somewhere off site. You might also consider e-mailing it to yourself and leaving it on the server for safe-keeping.
If you’ve been thinking of putting together an inventory, then maybe this will be enough to nudge you into action. Honestly, as hard as creating the initial inventory seems, the hardest part will likely be maintaining your inventory as you make new purchases or get rid of old things. But even having a semi-updated inventory is far better than having nothing at all.
Published on January 22nd, 2008 - 17 Comments
Filed under: House & Home, Insurance
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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17 Responses to “Creating a Home Inventory for Insurance Purposes”
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January 22nd, 2008 at 9:57 am
Fantastic post. I knew a family that lost everything they had in a house fire. A few weeks prior to that, their niece had visited and took a video of their entire house to show her family. She opened all the closets, even opened the cabinets. She went into the attic, the basement, the garage, everywhere, video taping virtually every single thing they had. Their insurance claims adjuster said that video was worth more than $50,000 (it was a large home), because it proved how much stuff they really had.
January 22nd, 2008 at 12:12 pm
Thanks for the tip. This is another thing that I have been meaning to update. Like you I had an old inventory, but it is way out of date. I will be checking out that program.
January 22nd, 2008 at 1:14 pm
@Ron
I made one a couple of years ago and as I was doing it I quickly became aware that I would never have been able to remember all that stuff after a fire. It is such a simple thing to do that probably doesn’t take more than an hour and like you said could save you tens of thousands of dollars.
January 22nd, 2008 at 1:48 pm
Interesting. Is this required or recommended by some home insurers? I have State Farm and I have never been advised to make one.
January 22nd, 2008 at 3:33 pm
This is a truely bad idea. I sell insurance, and trust me, it is a bad idea. Just as you use it to prove what you did have in the house the adjuster can use the same video to show what you didn’t have in the house.
If you have a fire, and everything burns up the insurance company can’t prove what you didn’t have. Therefore they just pay the maximum limit for contents coverage available on your policy. If you have a “home inventory” then you have to prove that what is in the video is worth the limits of insurance.
January 22nd, 2008 at 3:51 pm
Interesting perspective, John. So how does it work if you don’t have an inventory? Do you just provide a list of belongings? If so, what harm is there in having an inventory — after all, you don’t have to disclose it to the insurer. You can just use it on your own to generate the list of stuff that you had. Or does the insurer pay out a lump sum in the absence of any evidence? Here again, having an inventory can’t hurt, as you don’t have to disclose it to the insurer.
January 22nd, 2008 at 4:06 pm
Nickel,
You are right. I guess I took your post a little out of context. I do stand firmly on the fact that it is a horrible idea to provide the insurance company/adjuster with this information.
If you don’t have an inventory you have as much contents as you say you have. If the house is burned down the company can’t expect you to produce reciepts (and no judge will either).
January 22nd, 2008 at 5:57 pm
An inventory was preferred by my insurance co. when several boxes of media (games, dvd, cd, books) were stolen by the scum that Starving Students sent to move our stuff. We got nowhere with the merchant & wound up filing a claim under our renter’s policy.
Fortunately, after one heckuva lot of brainstorming we were able to recreate most of what we had in list form as there’s no way we have a lifetimes worth of receipts. Most however, is not all & we still run across belated reminders of what’s still gone.
After that little event from heck, EVERYTHING is inventoried now.
January 22nd, 2008 at 6:39 pm
I’m holding off on installing that program for now. From the license agreement:
“2.2 Third Party Providers/Third-Party Materials.
DURING THE SOFTWARE INSTALLATION PROCESS, OR AT LATER TIMES, YOU MAY BE GIVEN THE OPTION OF INSTALLING AND/OR USING COMPLIMENTARY SOFTWARE SERVICES FROM THIRD-PARTY PROVIDERS (THE “THIRD-PARTY MATERIALS”). BY WAY OF EXAMPLE ONLY, THE SERVICES AND /OR SOFTWARE OFFERED BY QUIET LIFE LLC THROUGH ITS VAULT24.COM WEB SITE ARE DEEMED THIRD PARTY MATERIALS UNDER THIS AGREEMENT. THE INSTALLATION AND USE OF ANY THIRD-PARTY MATERIALS MAY BE GOVERNED BY ADDITIONAL LICENSE AGREEMENTS. ANY AND ALL THIRD-PARTY MATERIALS PROVIDED BY THIRD-PARTY PROVIDERS HAVE NOT BEEN INDEPENDENTLY AUTHENTICATED, TESTED, OR VERIFIED IN WHOLE OR IN PART BY LICENSOR. LICENSOR DOES NOT PROVIDE, SELL, LICENSE, OR LEASE ANY OF THE THIRD-PARTY MATERIALS OTHER THAN THOSE SPECIFICALLY IDENTIFIED AS BEING PROVIDED BY LICENSOR.”
So basically, they may install spyware. Putting it as optin is often a trick used by some companies to look legit. In any case, since my spysweeper subscription has currently lapsed, I’m too nervous to try this. Anyone know exactly what it has and if there is a true opt out option?
January 22nd, 2008 at 9:31 pm
Very timely post… a coworker’s house burned down last night…
January 24th, 2008 at 12:37 pm
I am going to have to disagree with John and I am also an insurance agent. My agency offers this service to customers and it has been well received. From an E&O perspective, it can really save your bacon on huge claims like tornado and fire. I would rather my customers have it so I can tell them, hey you need more contents coverage or you need to schedule the jewelry etc. It can really be a tool to point out coverage gaps and increase trust with your clients.
January 27th, 2008 at 4:46 pm
(Is there any way to be notified of follow-up comments without leaving one? I have nothing to add to this but am interested to read what others have to say.)
February 5th, 2008 at 9:11 am
thanks for the timely article – we just bought a home a year or so ago and keep putting off doing a home inventory. I’m gonna do one now after being prompted by this and another post. thanks!
March 24th, 2008 at 6:12 pm
My house burn down three weeks ago. It had been burning for sometime before it was discovered. We were not home. Lost everything including piles of tax receipts covering the living room floor. Now adjuster wants a inventory list and he wants it yesterday. I said you got to be kidding!!!! I told him April 15 comes first and that any list I could make would be a long time coming and would be woefully inaccurate as I would be forgetting much – just cut the check for my insured amount. I’m guessing I don’t have to tell the group what the reply was and by the way, I have yet to get an advance check which they did say they would get to me ASAP. I always thought lawyers were low branch feeders but I am learning of a new group of people whom, from my viewpoint, I don’t see how they can call themselves human or if they were how they could sleep at night.
Can anyone point the way to a list that is available on the Internet that I can use as a starting point?? Sleeping in the car in Northern New England and taking showers in the gym or at friends houses when I go there for dinner sucks. How my wife can survive by only washing with a washcloth amazes me. Thank goodness my employer is understanding but I got to get stable sooner rather than later. Any advise???
March 30th, 2008 at 6:37 pm
My 24 yr. old son and father-in-law’s home (in-law quarters type of set up) burnt to the ground one week ago tomorrow at 2am. The insurance agent was there the next morning and after a quick walk-through (still smoldering!), he cut a check for initial needs. He continues to be amazingly helpful, walking all of through each step of this tragedy. He gave us his office and cell number to call him day or night with questions. And asked us to write the inventory list of all of their belongings so he makes sure we’re not shorted in reimbursement money. A fabulous collection of high-end fly fishing rods and tackle is adding up quickly. So is my son’s huge musical instrument and electronic recording equipment. If we weren’t doing the detailed lists and just guestimating, they would be out THOUSANDS of dollars. My suggestion is START THE LIST! As you begin, start room by room, and visualize your “prefire” home. You will soon be remembering things faster than you can write. We’re amazed at how much we would have forgotten if we hadn’t taken the time to do it thoroughly.
I don’t know how your policy is set up, ours is replacement value. It doesn’t matter that we had a 30 year old fridge or tv or lumpy old living room furniture, they will replace all with today’s equivalents – brand new! I’m sorry to hear about your unfortunate experience, Bill! But be thankful for lives saved, not ‘things’ lost!!!! From the ashes rise new beginnings!!!!!!!! After the dust settles, maybe a switch of insurance carriers is in order.
February 3rd, 2009 at 9:37 pm
I have an inventory and I think its a great idea. I’m not that keen on trying to download software and maintain it so I use an online service. That means if I ever really need to get to my inventory, say if my house burnt down, I can get it anywhere.
Aside from having that piece of mind, I find I use the information in there surprisingly often. Its always useful to have things like warranty information on hand…
July 1st, 2009 at 4:40 pm
@ Buzz,
What online service do you use? What’s your review of it?
To the others: anyone else using other software/services they would recommend?
Thanks!