{"id":13427,"date":"2025-09-26T13:36:26","date_gmt":"2025-09-26T18:36:26","guid":{"rendered":"https:\/\/www.rate.com\/insurance\/?p=13427"},"modified":"2025-09-26T13:36:28","modified_gmt":"2025-09-26T18:36:28","slug":"how-do-i-make-a-home-inventory","status":"publish","type":"post","link":"https:\/\/www.rate.com\/insurance\/resources\/how-do-i-make-a-home-inventory\/","title":{"rendered":"How Do I Make a Home Inventory?"},"content":{"rendered":"\n

Homeowners insurance is meant to help you recover from a major covered peril. Fire or storm damage can cause thousands of dollars in damage to the exterior and interior of your home.<\/p>\n\n\n\n

We don\u2019t always think about all of the items that make a house a home. The furniture, mementos, and even things like clothing and shoes, are such a part of our everyday lives that we don\u2019t zero in on how daunting \u2013 and expensive \u2013 it would be to have to replace everything.<\/p>\n\n\n\n

This is where developing a home inventory serves a critical function. In order for your homeowners insurance to replace your belongings, it has to know what your belongings consist of, in every room that was affected.<\/p>\n\n\n\n

What type of sofa did you have? Was it leather or upholstery? Did it have foam-filled or down cushions? What length was it? Where and when did you buy it, and how much did you pay?<\/p>\n\n\n\n

Unless it was a recent purchase, most people won\u2019t have a receipt close at hand showing all of this, but this is all important information when your insurance company is trying to estimate your claim amount.<\/p>\n\n\n\n

And that\u2019s all just for a single piece<\/strong> of furniture. Now try to answer all of those questions for every object <\/strong>in your living room, kitchen, and bedrooms.<\/p>\n\n\n\n

The need for a home inventory is readily apparent, especially if you expect your insurance claim to restore your home to the way it was before you experienced a loss.<\/p>\n\n\n\n

Many people make the mistake of assuming their belongings just don\u2019t amount to much. That\u2019s because most of us acquire things over time, which blunts our perception of how much it would cost to replace everything all at once.<\/p>\n\n\n\n

The fact of the matter is, you probably have more invested in your personal property items than you realize. Making a home inventory will help show you how much coverage you should have.<\/p>\n\n\n\t

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Ensure your home is protected<\/p>\n\t\t\t\t\t\t\t

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Actual cash value versus replacement cost<\/strong><\/h2>\n\n\n\n

When you apply for homeowners insurance, one of the questions you are likely to be asked is to choose between actual cash value or replacement cost. These are levels of coverage that will significantly impact the calculation of how much you will be paid for a claim.<\/p>\n\n\n\n

Actual cash value<\/strong> is coverage for items at their depreciated cost. If you have actual cash value coverage, your claim will be calculated based on how much the depreciated cost of your items, and not what it costs to purchase the item new.<\/p>\n\n\n\n

Upholstered items depreciate quickly, for example, with a general estimate of losing 20% the first year, and five percent or more each additional year. That means a couch you paid $1,000 for will be worth $800 the first year after purchase, if it\u2019s in perfect condition.<\/p>\n\n\n\n

Replacement cost coverage<\/strong> is designed to cover your belongings at the cost of buying things new. If a fire destroys that couch you paid $1,000 for and it now costs $1,200 at retail, your claim covers the cost to replace it new.<\/p>\n\n\n\n

Over the past few years, prices of some products have increased significantly. Knowing how much coverage you have and whether your belongings are covered at replacement cost or actual cost value is an important part of understanding what your homeowners insurance would cover if you experience a loss.<\/p>\n\n\n\n

Documenting your property<\/strong><\/h2>\n\n\n\n

It can be incredibly daunting to think about developing a full home inventory. Who wants to spend the weekend counting how many kitchen utensils they own, or documenting how many throw pillows are in the house?<\/p>\n\n\n\n

Technology is making home inventories far easier to develop, maintain, and update. Here are some examples of how recent advances in technology can help you build, store, and maintain a home inventory:<\/p>\n\n\n\n