Don’t Skip the Forks in Your Household Inventory

Some people think it’s mandatory to have a record, a household inventory, of all your possessions to get homeowners or renters insurance. This isn’t true, but an inventory can still be valuable too.

While the idea of going through every nook and cranny of your home and creating a record of every item likely doesn’t appeal. Making an inventory is a good way to determine if you have enough coverage, whether it’s homeowners or renters insurance.

Both policies provide protection for personal belongings: Renters insurance allows you to choose a coverage amount, and homeowners insurance typically covers personal belongings for a percentage of your home’s value.

For example, if your home is worth $250,000, and your belongings are covered at 10 percent of your home’s value, you’ll have $25K coverage. This may be enough for some, but not for others, illustrating why an inventory is important.

Here’s how to conduct one:

List and estimate the value of large items first, such as your sofa, bed, and appliances.

Record and value ALL household items such as clothing, sheets, and towels.
Include the value of small things such as forks. Most of us accumulate “stuff”, and it’s easy to forget how much you’d miss eating with those forks.

Once you’ve estimated the value of everything, tally it up.

Double that amount for a rough idea of how much coverage you need.

If you have valuable items, such as jewelry, paintings, or collectibles, talk to your insurance professional about scheduling them.