Homes in the Centennial State: the American dream realized, whether it’s the cozy nest of a bungalow in the Wash Park or the majestic surroundings of a ranch in Grand Junction. But the minute the deed is yours, all the responsibility rests on your shoulders. Are you really ready for the surprises? From the devastating wildfire risks in the foothills to sudden pipe bursts during a Front Range deep freeze, the unexpected is just part of the Colorado lifestyle.
That is why creating a home inventory for insurance claims is not just a “good idea”—it is an absolute necessity for every homeowner who wants to protect their financial future and ensure they aren’t left high and dry when disaster strikes.
In our 4-week series, How to Protect Your Home (and Not Break Your Budget), we peel back the curtain on what it truly takes to safeguard your investment. This week, we are diving into why keeping an itemized list of your home’s contents is a huge help when you need to navigate the often-complex world of insurance. Your policy is a promise, but a home inventory for insurance claims is the evidence that forces that promise to be kept.
Why Every Coloradan Needs a Home Inventory for Insurance Claims
Walk around your own living room. There’s your leather couch, your 65-inch 4K TV, and maybe those high-end skis hanging in the corner. To you, these are part of your life. To an insurance adjuster after a disaster, they are simply “unverified assets.” Without a home inventory for insurance claims, you are essentially asking the insurance company to take your word for it. In a high-stakes environment like a total loss claim—common after the high-wind fires we see in Boulder or Colorado Springs—merely “taking your word for it” rarely results in a maximum payout.
The True Value of Your Belongings
If you add up every appliance, article of clothing, and piece of electronics, it will likely be much more valuableness than you think.
- Coverage Accuracy: An inventory can also help you assess if the amount of coverage you have set is sufficient to cover a loss.
- Verification: It provides documented proof of ownership that adjusters cannot easily dispute.
- Speed: It facilitates a much faster claims process, getting your recovery funds back in your pocket sooner so you can rebuild.
Getting It Right: The Elements of a Solid Home Inventory for Insurance Claims
Doing a home inventory for the purposes of filing insurance claims is a process that is daunting, but it’s one that is not a mountain too great to climb. It is simply a task of assembling a list of the things that belong to you. It can be a catalog of your life. Colorado is a place with a “work hard, play hard” lifestyle, which means our homes contain things such as expensive recreational equipment, like mountain bicycles or professional hiking gear.
To “adjuster-proof” your inventory, you will require something beyond just names on your list. For each important item, you should seek to include:
- A Clear Photo: Or better still, a video walkthrough of the whole room.
- Description: Include the make, model, and color.
- Serial Numbers: This becomes critical with electronics, tools, and major appliances.
- Purchase Date: Even a rough estimate helps establish the age for depreciation purposes.
- Estimated Value: Include scanned receipt copies or links to current retail price.
Making It Easy: Software and Apps for Home Inventory for Insurance Claims
We live in a digital age, so there is no reason to rely on a yellow legal pad and a polaroid camera that could easily be lost in the same fire you’re trying to insure against. There are incredible software options specifically designed to help you itemize your stuff. These inexpensive programs guide you through a room-by-room process, ensuring you don’t miss the silver in the dining room or the specialized tools in the garage.
One program we frequently suggest to our Colorado clients is the What You Own software. It’s a robust tool compatible with both Windows and Mac systems. For a one-time cost of about $39.99, it’s a systematic approach to documenting everything that’s in your home.
If you think software is too businesslike for you, there are online options such as Dropbox (rel=”nofollow”) or iCloud. All you have to do is point the camera around your home and point out the specifics as you’re doing it and upload it right away. This way, you can be sure that in the middle of the disaster and if your phone gets lost in the chaos, the contents of your home are documented and secured and will be accessible anywhere.
Keep It Safe: Storing Your Home Inventory for Insurance Claims Off-Site
One of the worst things a homeowner can be guilty of is building and maintaining their inventory list within the home itself, which is what you are protecting. Well, I can guarantee you that if a flood and/or fire alters your living arrangements, your paper inventory list in your desk drawer will be nothing but ashes in an incredibly short amount of time. We know in Colorado that we can move quickly in severe weather patterns, giving you very little time to gather your documents before evacuating.
Your home inventory for insurance claims must be stored off-site. Digital records in the cloud are the gold standard because they can be accessed from any computer in the world. However, if you prefer physical backups, keep them in a safe deposit box at a local bank or with a trusted relative who lives in a different zip code. As we discuss in the official Ready.gov guide to disaster prep (rel=”nofollow”), having your documents ready before the smoke appears on the horizon is the difference between a smooth recovery and a financial ruin.
Avoiding Costly Mistakes with Your Home Inventory for Insurance Claims
“Set it and forget it” is a mistake people make in their first homeowner experience. Your life is different. You go out and buy a new Peloton, or you put in new stainless-steel appliances in your kitchen. You may inherit family heirlooms. If you do not update your home inventory on a yearly basis, you’re missing out..
We advise a “New Year’s Inventory Update.” Each January, make your way around your home and record new significant purchases. This ensures your records stay current, reflecting your changing lifestyle, so your insurance coverage stays current too. Insurance is only as valuable as your recordkeeping. Don’t fall short in your recordkeeping, risking a lower recovery because your inventory was not documented.
The Connection Between Inventory and Colorado Flood Risks
Next week in our series, How to Protect Your Home (And Not Break Your Budget), we will discuss why flood insurance is critical, even in our semi-arid climate. But here is the kicker: If you do experience a flood—common during our spring run-off or sudden monsoon downpours—your home inventory for insurance claims becomes your most powerful weapon. Water damage is notorious for destroying the evidence of what you once owned, turning furniture into unrecognizable debris. By having a digital record, you can prove that the “heap of wet fabric” in the corner was actually a $2,000 designer rug.
Conclusion: Final Thoughts on Your Home Inventory for Insurance Claims
No one likes to think about their home being devastated, their valuables being stolen. This is just one of those “what ifs” that could easily keep you up at night. But it’s up to you to be smart enough to realize it and work to be ready for “what ifs.” Of course, it may take you some time to create this home inventory, but this peace of mind you are leaving to your heirs will be well worth it. Trust me when I say this, you are doing this so that when “the worst happens,” you don’t find yourself fighting to recall which brand your dishwasher was and how much your couch cost when you are reeling from your grief.
They’re there for you and your insurance needs. The data will help them and them alone in this case. You be the prepared homeowner this wild landscape of Colorado so sorely needs. Begin your inventory list today and put it safely in the cloud so you can sleep better tonight knowing your home and budget are protected. We have more suggestions and tips for you next week!
Frequently Asked Questions (FAQ)
Q: Does my standard Colorado homeowner’s insurance cover everything in my inventory?
A: Not necessarily. Most policies contain “sub-limits” for high-value items such as jewelry, firearms, or artwork. If your inventory of personal property for insurance claims disclosure shows that your property is worth more than your sub-limit, you may need to purchase a “rider” or “scheduled personal property” coverage.
Q: How often should I update my home inventory?
A: We recommend a full update once a year or whenever you make a purchase over $500. Keeping your home inventory for insurance claims current is the best way to ensure you are never under-insured as you acquire new belongings.
Q: Is a video walk-through enough for an insurance claim?
A: A video is a fantastic start and serves as great visual proof of ownership. However, for high-value electronics or appliances, having the serial numbers and purchase dates documented in a separate list is much more effective for a home inventory for insurance claims.
Q: Where should I store physical receipts for my inventory?
A: Ideally, scan them and save them, or take pictures of them, preferably right away. This will ensure that thermal paper receipts don’t deteriorate with time, making them unreadable. The most secure method to save copies of these receipts would be to save it either on Dropbox.
Q: Do I need to inventory cheap items like clothes and kitchenware?
A: Yes! Although an item of clothing or a piece of kitchen equipment will not cost much to replace individually, replacing an entire wardrobe or set of kitchen equipment will cost thousands of dollars. Categorize such items together on your home inventory for insurance purposes (e.g., “Approximately 30 pairs of jeans, average cost per item $50″)
This handbook on how to do a home inventory is complemented by a pictorial guide on the above steps, so organizing your documentation today is even easier.
