Everyone has some possessions they consider irreplaceable – be it artwork, jewelry, family heirlooms or photographs, memorabilia, financial documents, and other valuables. But the items you use every day are just as valuable when you are considering your home’s insurance and your estate plan.

It’s better to protect yourself now and document your possessions rather than trying to do it after something has happened. A home inventory will give you an accurate recording of your assets for insurance purposes and give you a better idea of how much homeowner’s insurance you need to ensure proper coverage.

There are a number of ways to document your possessions, so you’ll need to find what works for you. It would be wise to discuss your plan with your insurance company to make sure they feel it’s the best way in case of a loss claim. Here are a few suggestions for you to consider.

Tip:
Don’t forget to document everything! The items you use on a daily basis are probably more valuable than you think. Imagine having to replace your furniture, dishes, silverware, clothing, bed linens, your books, CDs, DVDs, etc. The  items you use everyday would probably cost more to replace than the items you think of first, such as electronics, jewelry, art, etc.

When you document your possessions for insurance purposes, photos work well. You’ll need to take clear pictures of everything you want covered. When you print them out, document where the item is in your home and what it is, if it’s not obvious from the photo.

As with videos, you don’t need professional photos. Your digital camera will work just fine for the needs of your insurance company. The most important thing is that you take the pictures close enough to see what the item is and where it’s located in your home.

This process is similar to creating a financial inventory: start by writing down everything you want insured. Document where the item is in your home, and what it is. Include serial numbers and model numbers if applicable. You can then give a copy of the sheet to your insurance agent.

It is probably a good idea to document your possessions in conjunction with the video or photo documentation, that way you have a listing of serial numbers, model numbers, and other specific information that will be helpful in filing a claim.

Free online home documentation software. You can get a free online home documentation software program from KnowYourStuff.org, which is sponsored by the Insurance Information Institute. The software will help you do a room-by-room inventory of your personal belongings.

You may wish to get a professional appraisal for jewelry, artwork,  antiques, memorabilia, and other one-of-a-kind or hard to replace valuables. Be sure check your homeowner’s insurance policy for limits on single items and take out a rider on these items if necessary (for example, wedding rings and other expensive jewelry will often exceed dollar values on typical homeowner insurance policies. So will original artwork, high end furniture, etc).

Tip: 
Get homeowner’s insurance rate quotes at least once per year to ensure you are getting the best value for your needs. Be sure to include any riders for valuable property in your homeowner’s insurance quotes.

You never know when something bad may happen, so it’s better to be protected. The suggestions above will help you to learn how to document your possessions for insurance purposes so your items will be protected if something were to happen.

This information will also give insight into how much homeowners insurance you should buy, make it easier and quicker to settle a homeowners insurance claim, and make it easier to substantiate any losses for tax reasons.