Quick: Can you name each item in your kitchen junk drawer? Most people can’t. Imagine, then, relying on your memory to list every item in your home after all the items are gone.

When faced with a fire, flood or other loss (such as a robbery), people who rely solely on their memories to list all the items in their home can make expensive mistakes with their home insurance. Before the unthinkable happens, take time to create a thorough home inventory.

Why a home inventory is important

An inventory is critical for home insurance purposes: When you make claim for damaged, lost or stolen property, your homeowners policy will require you to list the quantity, description, actual cash value (i.e., depreciated value) and amount of loss associated with each item. You’ll also be asked to provide copies of bills, receipts or other documentation to support your figures. If you omit some items, or fail to include an adequate description, you may not receive full compensation for your losses.

Steps to a successful home inventory

1. The best way to conduct a home inventory is to go room by room in your home. You will be listing furniture, jewelry, artwork, antiques, appliances, kitchen contents, clothes, carpets, drapes, computers and laptops, digital cameras and video recorders, DVD players, television sets, musical instruments, clocks, mirrors, linens, lawn mowers, tools, sports equipment and any other property.

2. Don’t forget the attic, hall closets, basement and any outbuildings, such as a garage, shed or barn.

3. Make a list of each item in the room, opening drawers, closets and storage boxes.

4. Be as descriptive as possible. For example, don’t simply note that a bed exists — describe the headboard, footboard, mattress and bedding, and write down colors and dimensions.

5. Include the following information for each item: 
Item description (and quantity)
Manufacturer or brand name
Model number or serial number
Description of where (or how) the item was obtained
Date of purchase or age of item
Receipt or other proof of purchase, showing cost
Current value 
Replacement cost 
Copies of any appraisals

6. Take pictures. Get out your digital camera or camcorder and take pictures of your possessions, especially if the items are hard to adequately describe on paper or if you don’t have a receipt. If you use a camera, label each photo with information about the item shown. If you use a camcorder, provide a commentary about each item in view. Date-stamp your video or take a shot of the date on that day’s newspaper.

7. Safeguard and update your inventory. All your hard work creating a home inventory will be useless if it perishes in a fire or flood along with your other possessions. Although you may want to have a copy of your inventory at home, you should also store a copy in a secure location, such as a safe-deposit box or your office at work. Include copies of your receipts and other supporting documentation.

Finally, you should update your inventory at least annually to make sure that it accurately reflects your home’s contents.

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