We are a society filled with individuals who like to accumulate “stuff”.  Yet we are not very good at managing all of our belongings since inventory control is not a skill most of us have.  Knowing what you own and being able to prove it can be vitally important during critical times in life such as moving, emergencies, disasters or for estate purposes.

Preparing a home inventory is critical for insurance coverage and claims, tax donations and estate planning, but it is also useful for moving, furniture layouts, home redecorating or renovations. Combine home inventory with your current warranties and manuals.

It takes some time, but it is well worth it. Help keep relationships with family and friends happy and positive by following these steps.

Take several full-room photos from various angles of each room of your home.

Room by room, photograph each of your possessions so they can be clearly and individually identified.

Fill your camera viewer for an up close view of each of the individual fixtures, and furniture.

Don’t forget items on the ceiling, floors or walls.

Wall by wall, photograph artwork, artifacts and window treatments.

Knick knacks can be grouped, but be sure to have a coin, ruler or yard stick in the photo to give a perspective on the item’s size.

Do not group items that cannot be clearly seen in the photo.

Zoom in for a second photo wherever there is an important detail, mark of authenticity, date and/or artist’s signature.

Now move on to photograph the contents of all case furniture, chests, drawers, cabinets, closets or containers that hold additional possessions.

Expose the interior items and photograph everything as a whole if you can easily identify the contents, such as a coat closet with umbrellas, hats and coats.

When you feel the need to further document items due to sentimental or monetary value, remove them and photograph them separately, again using a ruler, yard stick or coin to give the item a size perspective.

For jewelry or small valuables and collectibles, lay out all items on a dark solid color cloth. It is very important that you use something that provides size perspective on these smaller items, too.

The value of this exercise is enhanced if you take the time to take photos of as many individual items as possible so that the inventory becomes a meaningful tool for you for the future. The inside of a utensil drawer might seem inconsequential but the value of household goods and such common items add up quickly in an insurance claim.

Now take a few photos of the exterior of your home, including individual photos of outside items. Don’t forget your valuables and possessions in the basement, attic, garage, outside your home and off-site, include vehicles, watercraft, items in your safety deposit box, storage units and safe.

A suggested paper method is to print out the photos 6–9 to a page with your printer set at the highest quality on 8 ½ x 11 copy paper so they are clear and visible and you can write notes under the photos later. Photo paper is not as effective. Number the photos consecutively for easy reference.

You can also save the photos digitally and add the following information in the caption area: number of each photo, description, dimensions, was item donated or sold, name of individual who will inherit the item, etc.

Complete the same exercise for additional homes you might own, vacation homes, second homes, investment properties.

Reminder: when you bring a new item into your home—take a photo and add it to your inventory list. If it comes with a warranty or manual attach the receipt and add it to your binder.

Understanding Uses of a Home Inventory

Insurance Coverage and Claims

When you have completed your home inventory photos, numbered each photo and completed your Home Inventory List including the photo number, description of each item, price paid or current value with receipts or appraisals attached, if you have them; you are now in a great position to talk with your insurance agent about your insurance coverage. Does your coverage match your current situation? The proof is in the photos and the backup information you supply to your agent.

Once proper coverage is obtained, if you ever have a claim you will have all your information accurate and in one place to ensure you receive the correct dollar amount to cover your loss. You will not have to rely on your memory to try figure out what you have lost.

Tax Donations

Your home inventory photos and lists are a great tool when tracking your tax donations. When donating clothing, household items, etc. indicate on the photos and list that the item has been donated. Attach a copy of the photos from your inventory or take new photos of the donated items to your donation receipt for your income taxes. If audited, the IRS likes to see the photos with the receipts.

Moving, Redecorating or Renovating

When you have photos and dimensions of your possessions it becomes very easy to plan and determine space layouts. It also serves as a wonderful tool when shopping. Whether you are moving or staying put and making changes to your home, this system of inventory control can make your life much easier. If you are moving, the photo also serves as proof of the condition of each of the items being moved.

Estate Planning

One of the best ways to prevent family tension or problems is to send a letter and a set of the inventory photos to each family member or individuals who would be inheriting items from your estate. The relatives and/or friends  select the items they would like and write their name under each photo. Give them a set amount of time such as 2 weeks, a month, or as long as you wish to accomplish this and then they return the copies to you or a designated representative. The owner of the items will make the final decision about who will get which items and the information is recorded on the owner’s copy of the full set of photos. The owner decides, if at this point, they wish to inform the benefactors or not.

Once all or most of the decisions have been made, fill out the Home Inventory List.

Example: 1. Dad’s blue chair. Then state what happens to the item, such as: donated, shipped to John Doe, sold on eBay for $, bequeathed to, etc. In some states, if you have the list signed and dated by the owner of the property and witnessed by 2 people, it becomes a legal attachment to a will or trust.

Check with your attorney or the laws in your state before you proceed.

It may sound like a very time consuming process, but actually it only takes about 1½ to 2 hours to photograph the average home and about ½ to 1 hour to measure. The decision process is different with each person, but usually goes much quicker using the photos versus sitting in each room. The photos help to keep everyone more focused.

This also means that individuals don’t have to be in the space to make decisions and the approach may prove less emotional.

The most time consuming process is filling out the Home Inventory List, but if you take it one bite at a time and possibly delegate some of the task it will be completed and has the potential to give peace of mind when it comes to distributing the items in your estate.

Copyright © 2011 Carefree Transitions, LLC.  All rights reserved.