Take a household inventory for investment purposes

A household inventory provides valuable information for many purposes. Create one now to decrease stress later!

A household inventory is a collection of pictures and or video documentation of all your possessions. As part of the inventory, information would also be collected particularly on the more expensive items. This may include date purchased, cost, warranties, etc.

An inventory of your household furnishings and personal belongings can be useful to you as well as other members of your family. By listing and providing information about each item, the household inventory serves many purposes.

One of the most important purposes is that the inventory provides a basis for filing insurance claims in the event of loss by fire, flood, theft or other types of disasters. On the flip side, it helps you decide how much insurance protection you need to adequately cover your household furnishings and personal belongings.

From a financial stand point, it is functional in planning and forecasting replacement needs for furnishings, equipment and clothing. The inventory can also indicate the money value of your possessions for development of net worth statements which show financial growth.

Once the household inventory has been collected, it should be stored in a safe location so it won’t be destroyed due to destruction of your home. Consider placing the household inventory in a bank safe deposit box or fireproof home safe.

With all the great technology available, creating your household inventory has never been easier. Most cell phones have the capability to video record your property. The most important issue is to make sure that the information recorded is downloaded to a safe place for accessibility when needed. Photograph or video record your household furnishings and personal items in a systematic way. Inventory one room at a time and photograph or video record everything in the room. Don’t forget to go into closets and take special pictures of the more valuable items. Open drawers and photograph or record contents of each drawer. Lastly, photograph or record storage areas such as the basement, garage, attic and storage units. These areas need to be photograph and recorded in the same way as the interior rooms of your house. Take pictures of the whole area and open doors to cupboards, closets or storage chests.

When it comes to prize possessions, take extra care in documenting jewelry, furs, paintings and other values. Group small pieces of similar items together and place on a solid-colored rug or cloth. Document the brand name and if the item is extremely valuable, include a member of the family in the picture as proof that the items are really yours.

Once the household inventory had been established, it needs to be updated at least annually. When updating, consider the following tips: major purchases need to be added to the inventory immediately, small items should be done annually and items that you no longer have should be purged from the inventory.

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