Creating a home inventory is not a simple process. Look around any given room of your home right now and chances are you will find numerous items present.

Each one of those items should have some type of record that allows you to prove you own that item. Records help should you need to file a home insurance claim at some point in the future. Now, think about your entire home. There is a great deal to catalog and record here!

There are several common myths associated with the process of creating a home inventory. You should avoid these myths. Keep in mind that if you do not have some proof of ownership of an item, your insurer may not honor a claim for that item.

#1: You Don’t Need to Be Comprehensive

The more detail you have regarding what you own, the more accurate your home inventory will be. Most home insurance policies will have a cap on how much they will pay out for a specific type of claim. This is usually 10 or more percent of the total policy value. However, you do not automatically receive that amount. Instead, you receive the amount based on the value of what you can prove. Be thorough.

#2: A Simple List Is Best

Lists may not be enough. Perhaps the best way to prove ownership of items in your home is to actually take photos of the items. Individual photos of highly valuable items is best. For most of the rest of your home’s inventory, it may be possible to create a video recording of each of the items you own. Take your time and go through the process of recording your items carefully.

#3: Receipts Don’t Matter

Finally, keep the receipts of the items you buy. This is very important for high valued items such as electronics or jewelry. This helps to establish ownership and worth of the item, giving you the protection that you need.

Creating a home inventory should be a priority. It can answer many of your insurance agent’s questions and give you peace of mind should you ever need to file a claim. It does not have to take long, but it is something you should do soon, before a problem occurs.