10 Ways to Create an Inventory for Your Home Contents Insurance Policy

When it comes to safeguarding your valuable possessions, nothing beats the assurance of a comprehensive Home Contents Insurance policy. However, it is easy to overlook a critical component that maximises the effectiveness of such insurance: a detailed home inventory. Budget Insurance understands the importance of this aspect of Home Contents Insurance. This guide aims to help you through the process of creating a home inventory, ensuring you a smoother claiming process.

What is an insurance inventory, and why is it important?

An insurance inventory is a comprehensive and detailed list of every item you own in your home. This includes obvious big-ticket items like furniture, electronics, appliances, smaller items, and even clothing. Each entry should ideally include a description of the item, the receipt and current value, and serial numbers or identifying features. Photos of each item are also useful.

In the unfortunate event of loss, a detailed inventory allows you to quickly and accurately identify what has been lost or damaged, making the claims process with your insurer more efficient. Additionally, an up-to-date inventory ensures that you are adequately covered1 by making assessing your contents' value easier.

Why an inventory system is required for insurance

Although it isn't mandatory, a home inventory can be a vital component of your House Contents Insurance, offering multiple benefits. These benefits include:

• More accurate coverage: An inventory provides a clear picture of what you own, allowing you to secure coverage that matches the true value of your possessions. Updating it regularly also allows you to see whether you are over or under-insured.

• Faster claims processing: A home inventory makes it easier for you to identify and report lost or damaged items. If it includes photos, receipts, and other documentation, it also provides undeniable proof of ownership. This can speed up the claims process, leading to a faster and more accurate settlement.

Consider two homeowners, Alex and Jordan. They have been neighbours and friends for years. Both have comprehensive Home Contents Insurance. However, while Alex maintains a detailed inventory of all items in his home, Jordan does not. Following a weekend getaway, they return to find their homes burgled.

Alex's detailed list—along with photos and receipts—means they can easily identify what has been lost and file an accurate claim. Their claim is processed quickly, and they receive a fair settlement reflecting their lost belongings' true value.

Without an inventory, Jordan struggles to determine what has been lost, especially smaller items such as jewellery and clothing. Jordan also has little evidence to prove ownership and the value of the lost items. Their claim process is drawn out and stressful, leading to a settlement that could fall short of covering the actual loss.

Best ways to create a home inventory system

Creating a home inventory for the first time can seem daunting. However, selecting the most suitable method and following best practices can simplify the process. Once created, you only need to update and maintain it, which is considerably easier. Follow the steps below to help you create a useful inventory system: 

1. Choose the format: The best one works for you. This could be in the form of a spreadsheet, photographs, video, or an app. You could even use a notebook with supporting documents. Digital formats are more adaptable, secure, and easier to update.

2. Itemise strategically: Trying to document your entire house at once is not recommended. Instead, break the task into smaller, more manageable sections. This might mean working through one room at a time or documenting items by category.

3. Be thorough with your descriptions: The more details you provide, the better. Each item should have a detailed description and include brand, model, purchase date, value, and serial number where necessary.

4. Include documentation: This includes store receipts, warranty information, and appraisals with your inventory list. This is especially important for costly items like electronics and jewellery.

5. Add photos or videos: Even if you choose to use an app or spreadsheet for your inventory, adding clear photos or videos can help show the condition of items along with any unique features.

6. Highlight valuables and collectables: Valuable items such as artwork, antiques, and collectables should be highlighted, with appraisals attached. This will also help your insurer determine if additional coverage is needed for these items.

7. Include lesser-considered items: Clothing, books, kitchen appliances and utensils, along with tools, home office gear, and sports equipment are easily overlooked. Individually, these have a lower value than your living room furniture, but trying to replace them all at once can be just as costly.

8. Review with your insurance provider: Discuss your inventory with your insurer to ensure it meets their requirements and to verify that your coverage is sufficient.

9. Secure your inventory: Securing your inventory is essential. Digital copies should be backed up to cloud storage or an external drive, and physical copies should be stored in a fireproof safe.

10.  Update it regularly: Your inventory should be a living document you update as soon as you make any large purchases or remove some items.

There are several mobile apps available to help you design home inventories, including Home Contents (iOS), Nest Egg (iOS & Android), and Magic Home Inventory (Android). If you’re using an app, choose one that includes secure backup options for your inventory. Remember, the aim is to be well-prepared for insurance claims and ensure your House Contents Insurance is as comprehensive and effective as possible.

Review your Home Contents Insurance policy

Regularly reviewing your Home Contents Insurance policy is essential for ensuring your coverage always reflects your current needs and the value of your possessions2. This is particularly significant for high-value items such as art, antiques, and jewellery. Understanding the policy limits and exclusions is critical, as life changes and market value fluctuations can impact your insurance requirements. An updated inventory helps with this, ensuring adequate coverage levels. It's important to be aware of what is and isn't covered under your policy to avoid any unpleasant surprises during the claims process.

Get a Home Contents Insurance quote from Budget Insurance

Now that you understand the importance of maintaining an updated inventory and regularly reviewing your insurance policy, the next step is finding the right coverage. Whether you're setting up a new policy or reviewing your current one, you’ll find it easy to get a tailored Budget Home Contents Insurance quote in minutes.